Thursday, March 29, 2007

Don't Fight the Tape

I'm watching the USDJPY on the 5-minute charts and I saw a brief breakout so I took a day trade in BMR. It doesn't look like we're going to have a boomer of a day though - one shot up and over. No sense in fighting the tape - if it happens it happens if not it doesn't - keep a close stop.

I did take advantage of this morning's chaotic opening to sell off a bit of my trading portfolio - RSH, IN, SPF, MDRX, and KNOT were all sold - enough winners to offset any losers and I feel better holding just OI and GGB. I have significant profits and shares in both of these. I'm holding both for a while longer.

I took my first Dead Cat Bounce trade this morning - AGIX - if there was ever a down trodden piece of crap that is it. Anyway I'll hold it for a couple of days or until it goes up a quarter or down 15 cents which ever comes first.


Anonymous said...

Dead cat or decomposing cat? That is one ugly looking chart!

Thanks for the headline. I'm sitting here looking for a trade telling myself to be patient, let the trade come to me. If it doesn't, then so be it, but don't force it!

Sit. Wait. Pounce. Easy to say, difficult to practice.

slotmonkey said...

The real DC Bounce was the first one on the 3/21 right after the 2 big down days. Good luck with the second bounce, hope you catch it.


Great advice