Scott, I was in this trade as well from the previous day (short at 82) and looked like it had the potential for small swing trade, but then I exited the trade around 78.50. My hunch was that it could pullback to 73-74 area. The question I have for you is to you ever get hunches on where you think the stock might go? If so, how do you pay heed to them?
sean- In day trading i don't ever think about where a stock can go to. Momentum in the direction of the trade is enough for me. If the trade goes the way I am positioned then its up to me to watch the momentum slow down and thats where I exit, or I exit when it would be stupid not to. However, when holding a trade for a longer period of time I have to switch my thinking to a different level where it is OK to ponder where a stock might end up. Normally this is very dangerous and reserved for the foolhardy - to suppose I know where something is headed and stick with it. Twice in the last 3 months I have taken AAPL swing shorts and been up 30 points only to see it come back to my entry. So I have been right on my hunches but haven't capitalized on them. The hunch I have on AAPl is that it is going lower than the 30 points - how low I don't know. Or maybe it will make new highs next week who knows, not me thats for sure.
TZOO short from yesterday
2 comments:
Scott, I was in this trade as well from the previous day (short at 82) and looked like it had the potential for small swing trade, but then I exited the trade around 78.50. My hunch was that it could pullback to 73-74 area. The question I have for you is to you ever get hunches on where you think the stock might go? If so, how do you pay heed to them?
sean- In day trading i don't ever think about where a stock can go to. Momentum in the direction of the trade is enough for me. If the trade goes the way I am positioned then its up to me to watch the momentum slow down and thats where I exit, or I exit when it would be stupid not to.
However, when holding a trade for a longer period of time I have to switch my thinking to a different level where it is OK to ponder where a stock might end up. Normally this is very dangerous and reserved for the foolhardy - to suppose I know where something is headed and stick with it.
Twice in the last 3 months I have taken AAPL swing shorts and been up 30 points only to see it come back to my entry. So I have been right on my hunches but haven't capitalized on them. The hunch I have on AAPl is that it is going lower than the 30 points - how low I don't know. Or maybe it will make new highs next week who knows, not me thats for sure.
Post a Comment