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Strategies & Market Trends : The Final Frontier - Online Remote Trading

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To: ojai who wrote (865)	11/8/1997 8:56:00 PM
From: funk	Read Replies (2) of 12617

Ojai-- Yup I think my broker doesn't allow for a stop limit...but now I will have to double check that. O.K. here is a real life story of an MM really putting the screws to an amatuer. The week before the crash there was a real rough start one morning and I am both a novice and an Idiot...CNBC was getting me all riled up and I went ahead and let myself get overwhelmed with fear and my rational thought process was shut down. I was holdin P-COMS which if you check a chart you would see I had it the morning after the big let down. Probably not a whole lot of downside in there and probably alot of natural trend to bounce up, but the morning was starting off bad all the markets on earth in decline I was on margin. So listen to the stupidity. First of all I hadn't yet stumbled onto the gold mines known as SI thread--Final Frontier and SI thread- Trading Desk. So I had already broken the big rule which Steve has said time and time again....a day trader does not take a stock home at night. Steve you'd be proud of me I closed out on AAPL Friday pm even though I believe there is a decent chance of a gap up Mon AM....I digress, back to MR. Loser goes to Wall Street..... So the market looks scary and I am still unfamiliar with the territory and Mark Haines has got me freaked so i'm hammering in limit orders but the bid keeps dropping ahead of me so i totally panic and hammer in a LOW limit. Dudes we are talking like way to low. Here is the punch line....I let the order loose and the opening bell had't even rung yet. COME ON! I had just had like a five day streak of great trades and things made sense and then this set of circumstances converged and this gigantic overpowering need to be a LOSER just completely over whelmed me. So you know what? I swear that I made that stock reach a low that never ever EVER would have happened. And the day of the crash...well I mean that tuesday when it bottomed..I think P-com was revisiting a low that really wasn't deserved. I mean the day I freaked I watched that MM just walk it down there and FUNK me. He funked me good. It was an ironic deal where if I freaked and placed a market order I would have gotten a better price...well I don't know what I'm talking about, but I have this perception that a market order would have been executed way sooner, but because I used a limit, they just hung it out there for a good while till they could push down the stock price and nail me. I mean that order had to stand out on all the MM screens just shouting " LOSER WANNABE DAYTRADER INTERNET JERK" all over it. Why am I telling you this? Because it is true. And I am really hanging it out for all the guys in my camp...the guys that see a thing that will work but are still figuring out how to drive the FUNKIN" Contraption.....Let's put it this way...My character flaw is to go for it... I need to control that...But at the same time if I did not have that way about me and I was afraid to lose a dollar...you know I would never even try....I am not promoting losing...in fact i would strongly advise against it... But I wanted the rest of the newbie camp to hear a bloody story. The situation would never had a chance to arise if I hadn't already broken like three rules already. Lock in a modest profit or if worse comes to worse lock in a modest loss, but don't call your self a day trader and then all of a sudden convince your self it's cool to buy and hold cuz it went against you. Don't place a trade before the damn bell! I Heard a wise old guff on CNBC later that morning as the market rallied up a hundred points...he said..IMPULSE IS YOU ENEMY.. holy moly. that was the lesson of the day for me. I need a poster of that on the wall above my desk. IMPULSE IS YOUR ENEMY... I am probably the greenest of the crowd so this post is really directed to myself. AE

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