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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: LastShadow who wrote (564)	9/22/1998 10:33:00 PM
From: Nazbuster	Respond to of 43080

We also know that if it gaps down, there is a threshold point at where recovery means the stock will probably rise substantially, or a floor, that, if penetrated, will continue on down. Understand. I'll find the gap info. I was burned on CAT on Monday. It's a stock in a downtrend, with a large range expansion down on Friday. On top of that, it gapped DOWN on Monday. I interpreted this as continued and exaggerated weakness and shorted. WRONG! It went up all day. I would have been much better off (watching all the buy orders), just tossing the short out and going long on CAT Monday. It was almost obvious, but I was trying to "stick to my plan." Where did I go wrong in my interpretation? When/how do you decide that your pick is wrong, bail and reverse the position?