Paul, Don't feel bad about getting trapped in AMZN+YHOO today,
those are some of the most difficult stocks in the universe to not
get "trapped" in, when the market gets hit with a blizzard of simultaneous "sell" programs like today.
One thing that can help here, is to watch the S&P Futures. If they every TANK HARD, like today - just GET OUT of everything. You won't go wrong. In YHOO+AMZN, you might have to set your sell price 1/2 point or further below the bid. But when Mr. Chicago comes-a-knocking like today - especially after all those successive "up" closes, you want to be out of the longs...
Re: your positions, one option to consider (no pun intended) is to sell some options (calls) against the stock positions. The option premium you bring in will help to erase your losses; the CBOE calls this "stock repair" (you have to hold a while and let the premium component of the option contract decay for this to work; otherwise you have to buy the premium back). I usually find it more expedient just to take the f___ loss, curse myself a few times :), (most imp.) write down and review what I "did wrong" in the trading journal, and get on with the next trade.
Hope that helps, -Steve |
