On Friday Robert Shapiro, head moderator of Affinity’s Online Trading Room (OTR), made a comment that I thought was something to think about when you find yourself with a short stock list for trading and you might be down a Risk unit or two. At this point you must ask yourself, is the environment good enough for you to catch up on your loss? You could be even for the day, after the morning session, and not really have a powerful list of stocks to work with for the afternoon. You might want to take the rest of the day off instead of risking a losing day, on a day that there would be no way to recover. I’ve found myself in this same scenario many times and have become completely frustrated and basically blown up my account for the day and making it almost impossible to recover for the week. When you’re struggling and your plays are not going the way you had expected and you have a short list that is really lacking; leave!
10/08/2013 Just had this thought, many times poor trading day’s turn into poor trading weeks as mentioned in a prior blog. Good days are followed my more good days, and the reverse is true. So turning a poor day into a worse day can make it impossible to catch up during a poor week. Example, right now is not earnings season, thus our morning selection is really not that great for gap plays. Our setups are not as reliable as a true blue earnings play and therefore we should not be as aggressive during this time in the market. In fact many Gap only players go away during non-earnings season, a good idea when you think about it…