Tuesday, November 18, 2008

reacting to every move

Today, my bad luck continued... after I cover my short @ $24 & $21 the option moved to ask @ $17. Imagining, that I could have covered it @ $17 made me wonder, every time I think the stock is moving down it turns around and goes up.

I am not really thinking very rational, I am (more like) hoping for the price to move one way or the other that is why I am always disappointed at the price movement. Even when I can see that the price is moving down I am hoping that it will reverse soon and start going up. That is why I am almost always wrong on the price move.

Not only am I predicting the price action incorrectly, I am also acting before the move does happen. I sell just before my prediction becomes true. Soon after, as I look in despair, my price target getting hit while I just sold out my position. This must be the ultimate 'Emotional Trading' that I am going through right now. I am reacting to every little move very impatiently.