My previous short trades have not been profitable – yet. I have pointed out the price data was at Resistance and yet, there was just some more willing buyers pushing up the prices after the technology stocks fell. Oh well, you know, this things happen, that’s why I firmly believe trading’s saving grace is position sizing. Not “being right” at entry. This is because only through position sizing controls your risk. Absolutely! With position-sizing, you already know from the start how much you are going to risk, so there’s no emotion clouding your decision making, selling when you shouldn’t sell or buying too much that you forget how you will meet your objectives with a number of positions (not just relying on one “lucky” hit).
And good thing for me when I entered my last trade, I followed that minimum position sizing rule, no ifs, no buts. I sure was tempted to increase it from the usual 1% to 2% — this time I was able to control my “confidence” and feeling of being right ( one of the hardest thing for traders hehehe). Right now, that trade is still alive, well within my Stop and the stock has just fallen 40cents (a big slide from the volatility of the last few days). That could be another indicator of the reversal of prices. So all I have to do is watch that the trade progresses to my favor or within my Stop.
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I got a few more holidaze left so I am not entering a new position until next week 🙂
Here’s a pic from a riverboat ride around Port Macquarie, New South Wales.
Holidaze
http://www.bloomberg.com/news/2014-04-09/asian-futures-rise-on-fed-as-yen-slips-crude-snaps-climb.html
