Monday, December 3, 2007

Why am I unable to stop looking at the price action?

Today I noticed that I was unable to look away from my stock/options position. Even though, I knew, that it does not matter weather I am watching it or not. I felt like I should know what is ‘happening’. I know that I will have to wait until tomorrow to make a sell or buy decision. I will have to wait and see what the outcome is, I still needed to know how it happened not just what has happened? I hope I will learn something from this? this desire to keep staring at the screen.

I try to learn things, such as, what time during the day is there more volume and quick price action? Since I do have belief about the daily price patterns. I need to verify my hypothesis that “price action reverses (from the direction earlier during the day) around 11:30am and the movement intensifies (in the same directions as was during the earlier part of the day) between 12:00 – 1:00pm EST”. I also try to find how the option prices are reacting to the changes in the in stock prices? How the options volume is affected, and how much is the lag time between the two price movements etc.

When I am holding a position, I get emotionally involved, and unable to monitor or observe. In such cases I get emotional, such as, happynes, sadness, excitement and impatience etc.
In other words, while I am holding and observing a position at the same time, I only get the feelings of pleasure and grief rather then useful observations I am hoping for.

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