ALL:
As the market neared its close yesterday, I decided to take a bit of a break from SI and my interest in trading. I went for a long walk and thought about both my own trading this week and my role as somewhat of a leader on this thread. Here are my conclusions:
First, in buying nine thousand shares of a stock, I violated an important trading rule in that I assumed too much risk in this trade. I must admit that, despite having made very nice profits daytrading PRFM over the last week, I have (on paper at this point) lost all my trading profits for 1999. This is a frightening proposition, resulting from my impulsivity on Friday afternoon. No matter where PRFM goes this week, I made a mistake that I will not make again. Being a good trader means not taking outrageous risks on impulse. I was not a good trader yesterday, whether I profit or not.
My second thought was about my role here. I try to post regularly about my thoughts on trading and my actions, mistakes and all. I realize that there are many people who read our thread and that a number of us have developed a following. This is a delight.It is also a tenuous balance of power and responsibility.
I have little doubt that Jon K. spoke the feelings of a number of thread members who bought PRFM in the heat of the last few days. Jeff has already eloquently addressed the issue of individual responsibility in trading. I sincerely hope that my enthusiasm in trading this issue, or any other, is not the reason why any of you trade it as well. I am very pleased to be asked about technique and style, but am not comfortable with "Do you think I should buy this stock?" types of questions.
I think it is obvious to all who are part of "Ask Trader Jeff" that this is a forum based on respect and honesty. We have learned together, taught each other, cheered each other on. Now, possibly, we have the opportunity to deal with significant losses. I can say with a high degree of certainty that Jeff will cope with his trading situation openly, honestly and with grace, as will I. We will do everything we can to support you all as well.
And finally, I want to thank a number of people: Sasa, William G. Murray, and a number of others who have joined us in the last few days with their support and insight. I usually welcome people when they begin to post and I'm afraid things have slipped recently. Please know that you are all very welcome here and add much to the fabric we are weaving.
Poet |
