Tony,
It looked like your sale of CREAF was timely. Today's candlestick is showing a hanging man pattern which is usually a warning that the price may drop. However, I see where the price is up in after hours. Maybe there's news out on it?
In any event, based on what you knew at the time of your sale, you managed the risk very well. Even if CREAF takes off from here, that isn't where the focus should be. The focus should be on identifying the short term movement and capturing the profit that your plan indicated might be there before the trade was triggered.
stockcharts.com[h,a]daclyiay[d20041012,20050112][pb50!b20!f][vc60][iut!Lah10,30,5!Lc20]&pref=G
Good job.
A note of interest perhaps. If CREAF gets up above the recent highs tomorrow on good volume, you can always buy back a position, even though it's somewhat higher than the price you sold at.
Don't place limitations on yourself with regard to price. It's price action you want to capture, regardless of what the price is. Those who focus on price don't outperform the market on a consistent basis. Those that focus on price action do.
A friend and I were discussing CME last night. He commented that a year ago he thought CME was priced too high at $100, and it probably was at the time. This year it's up over $200.
It isn't the price, but the price action that we want to capture.
Good luck.
dabum |
