Friday, October 31, 2008
Position Update - Decent Entry, Pathetic Exit!
What a disappointing exit for me in regards to closing my position of DIN. I was able to close my short position of DIN at $17.02 during the last ten minutes of the trading session for a gain of $306 after commissions. This may sound solid, but in the whole scheme of things, my exit was pathetic. Absolutely pathetic. There was a point in the day where I was up more than double his amount, but I didn't just simply close out this position and just move on; I was up over $800 at once time today. I noticed that the intraday chart was starting to look ugly and unpredictable, especially around lunchtime Market time. I didn't like that the stock started to battle back and linger around yesterday's closing price and I ignored that sign. Greed right there. Luckily, I got out before this stock headed back into green territory where it finished up about 7% on the day. Pathetic exit, lucky trade considering I had to risk big for a relatively small gain. Decent entry, pathetic exit.
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4 comments:
Torello,
What were your observations about the chart? Could you pull the chart and make some notes? Reason I am asking is this. I shorted HSNI, JAVA and SPAR today. They were all fluctuating during the day (both high as well as low) but I did not exit as volume was below average volume.
Anyway, when I reached home and I saw DIN reaching 18$, I was worried about your short position. I think you should feel lucky as it moved 2$ in last 10 minutes! I would really like to understand what made you exit the trade.
Thanks!
RJ
Si, il torello, sono contento che you got out of the trade when you did...don't be disappointed with a profit of several hundred bucks, that's a great addition to your good trades.
ramtajogi...Great job with HSNI, JAVA, and SPAR. HSNI and SPAR have nice looking charts compared to JAVA. JAVA's a huge company so I probably wouldn't even try to play that one, but looks like you did great and I hope you banked - congrats! The chart on DIN since Wednesday is a total roller coaster because of the bid/ask spread; the bigger the spread, the riskier the play because of wide price fluctuations. HSNI and SPAR look no where like DIN. About midday, DIN started fighting back along with an increase in volume which suggests to me an increase in demand for the stock, pushing its the price up; a lot of buyers! Another sign that I use to get out of a stock is when its starts hanging around or even over the previous day's close.I pretty much got out of DIN because it just started looking unpredictable to me chartwise. I've learned to just play it safe with my small account and walk away, but today I got a little greedy and pressed my luck a bit because of my winning streak. We'll see what happens Monday, but there are always other opportunities out there.
And most importantly you didn't loose any $ ;-)
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