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Strategies & Market Trends : Your Worst Trading Enemy.. You -- Ignore unavailable to you. Want to Upgrade?

To: Northspoon who wrote (210)	2/6/2001 7:50:38 PM
From: RobQ	Read Replies (2) \| Respond to of 223

Brings up a good point about staying in or getting out of a position around earnings. Our hearts or our heads may see it one way or another but since TA is predicated on "no news" isn't it unwise for you trader types to be either long or short at earnings time? I recently got out of a large position just before earnings were released (and I'm a relatively long term investor) because earnings and the market's response to them have been so unpredictable......but I ended up missing a big gain. Did I miss a way to "hedge my bets" on my long term holding without dumping the shares? Anyone have any experience to share?

To: Northspoon who wrote (210)	2/7/2001 4:20:48 AM
From: shawnwolff	Respond to of 223

To: Northspoon Re: Risk-taking <I wanted to stay in CSCO through earnings but head overrode my heart> Good job resisting the urge to "revenge trade"! I exited all positions ahead of the announcement. There was a lot of negativity surrounding CSCO lately, so we knew the reaction in either direction would be intense and broad. CSCO is a bellwhether stock. In the spirit of listening to safety rather than potential, we (as traders)had to exit before that announcement. Holding would have been a gamble. Gambling has big pay-offs and large risk, and that is not what consistent trading is all about. - Shawn

To: Northspoon who wrote (210)	2/7/2001 4:33:35 AM
From: shawnwolff	Read Replies (1) \| Respond to of 223

Re: In The Aftermath of a Large Loss I see a few common pit-falls that people fall into after a large loss. One is a "deer in the headlights syndrome" where they become so gripped with fear of that happening again that they can't seem to enter a trade at all. Another is a "revenge syndrome" where they go on a mission to get their money back asap. The problem with this is that they wind up taking unusual risk. Large fast gains are usually accompanied with large risk. I understand wanting the money back, but I see that syndrome too often lead to a snowballing of the losses. In my opinion(and that's all it is), it is much better to take a little reflection time and figure out first how and why you took that loss. If you don't know why you are losing, those losing patterns are not going to change by continuing on the same path. Then take small cautious steps to rebuilding. You aren't simply rebuilding your portfolio, you are rebuilding your confidence, your skills, your strategies and habits. And that rebuilding can be a wonderful experience and serve for a lifetime of trading to come. The turtle won the race. - Shawn