Thursday, September 07, 2006

Micromanaging Trades: I'm Making Some Progress

Just after entering my short position in BOOM, the stock jumped about 1 1/2 points but was still under the initial stop. Although the stop was set just above $38, I was inches away from clicking on the "cover" button once BOOM hit $37.50. Luckily, I remembered what I had wrote about micromanaging and how it hurt my August performance. I walked away from the computer, as I didn't want to tempt myself, and stuck with the trade. The stock is now trading just below my short entry and I have currently saved myself over $650.

I know it's going to be a tough battle, but it looks like I'm making progress in when it comes to micromanaging.

2 comments:

Jack said...

Great point. I have been in that spot just recently. Seems if I don't take a break from being fixated on every single tick, then my mouse finger starts getting itchy.

Glad to hear BOOM worked out for you.

The Market Speculator said...

Not fixating on the ticks sure does help, especially if you are a swing/position trader. I tend to be critical and don't pat myself on the back often, but I a proud that I was able to fight the urges to micromanage and stuck with the BOOM trade. If I can keep it up, it may mark a real turning point for me.