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Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Tony van Werkhooven who wrote (15180)	3/25/1998 11:02:00 AM
From: Bilow	Read Replies (1) \| Respond to of 18056

After all that talking about not picking tops, I just picked up a couple bucks going long puts on the Naz 100. I just couldn't resist. I mean, really, 2.5% up overnight? I don't think so. So when it fell below its open (i.e. a form of what the day traders call a "ross hook") I went long puts, then kept a trailing stop like I'm supposed to... The trailing stop took me out with a 1 3/8 profit. The embarrassing thing is that on options you have to eat the spread, and it was a buck. The market maker did nearly as well as I did, given that he probably was well hedged. Wonder how badly my instructor will beat me up for (1) Trading in a high-spread market. (2) Going against the trend. (Maybe this doesn't apply cause the up trend was clearly broken.) I'm trying to be a good trader, and follow the ancient and revered rules, I really am. But it takes so much discipline. The basic problem with most people doing this kind of trade is that they don't have time to sit around waiting for the perfect sell point (when it breaks through its resistance) and then watching for your trailing stop. -- Carl