Widening Your Field of Vision
Mon, Aug 30, 7:16 PM ET, by Zachary G. - Freshman Equities Trader, Hedge Fund Live
Today the Industrials book closed down $3,249 and went out with an absolute value of $210,680. GE was the sole winner brining in a P&L of $380 as the stock closed down 1.3%. This short position has been consistently profitable as the stock has sold off two points in the month of August. The stock is down from all major levels of moving average support and only has $1.50 to go in order to put in a new 52-week low. On the losing end was FDX, which cost us $1,472. We added to the stock as it pulled into support; however, FDX struggled against the ebbing tide of the market and closed down over 2 percent. Much of Friday's gains in BA and ATI were given back today as those names closed down $1.06 and $0.99 respectively. From a personal trading standpoint, I closed the day in the red, but I was able to control my losses and believe I exercised proper discipline. Unlike other days when I have kicked myself for holding losing positions for too long, today I accepted the fact that the market proved me incorrect and moved on to the next idea. Furthermore, my strategy of focusing on the movements in the overall market allowed me to control losses and know when to book profits. Myopically focusing on each tick in an individual name has led me to stubbornly hold onto losing positions believing that a particular stock is showing relative strength or weakness. Instead, I have been widened my focus and asked myself these questions: “Do I want to own stock at this level in the market? What is the risk to reward at these levels in the Spooz? What do I believe the market will do today?” Visit HedgeFundLIVE.com.
Experience Hedge Fund Live; the web site gives you access to a Transparent Hedge Fund through its virtual trading environment. As a special offer to Self Directed Investor visitors, you may use the following price reduction code and receive a 33% discount: SDI33P. You may also choose the Premium Membership 4 Week Free Trial option when you register. Sign up NOW for a 4 Week FREE TRIAL, receive the 33% discount and enter Hedge Fund Live!
SDI Glossary: "price" Definition
This Article's Word Cloud:
Fund
Hedge
Live
Membership
Sign
Spooz
Week
What
added
allowed
been
believe
book
closed
control
discipline
discount
down
enter
fact
focusing
have
hold
levels
losing
losses
market
movements
myself
overall
particular
position
positions
receive
relative
short
showing
stock
strength
stubbornly
support
that
these
through
today
trading
visitors
weakness
went
when
More articles: 1 2 3 4 5 6 7 next »
|
RSS