Monday, August 31, 2009

All Shook Up

Grrrrrr... it is just as easy to be shaken out of a position on the short side as it is the long side. I placed my stop loss at a new recent high (anything over $51 as that was the intraday peak for the entire month of August) when I shorted Shanda Interactive (SNDA) a week ago. That executed Friday at $51.20; we took the realized loss ... and the stock proceeded to reach as high as $52.

Consider myself shook...

Mechanically I would not of done anything different as I look at the chart (even the closing price was over the 50 day moving average AND a monthly high), but that still stinks. Sometimes you are on the shorter end of the probability stick.

So much for matching Goldman's 97% winning percentage this month! Oh well, time to go buy some stock in my trading department and then get my research department to upgrade said stock to a "buy" next week... of course both events being independent of each other and my success next week only being due to me being smarter than anyone else in the room.

No position

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