Friday, December 14, 2007

The Law Of Fuckery

The Law of Fuckery: Those trades that appear most promising, are also the trades that will twist up your insides and ruin your day when they fail.

With all of the solars strong this morning, I gravitated to that sector to scan for trades.

I found LDK which appears to be flagging on the daily chart after it's recent strong run. I noticed that yesterday afternoon, $58 appeared to be fairly strong resistance. When it tested $58 again this morning, I decided to watch and wait for a break of that level so I could buy.

I caught the run up to $59, turning the stock into my best winner in days. However, I bought the stock again when it came back down to $58 since I now expected that level to act as support. This is where my troubles began.

As you can see, it broke $58 and shot back up. I exited my position when it broke $58 (and got an awful fill) but then anticipating the spring back, I bought again at $57.66. The stock teased me by trading $58 again, (where I added to my position) but that turned tail and cracked again.

It's now my worst stock of the day and I'm solidly red.

This week has been tough for me.

1 comment:

Ragin' Cajun said...

"The Law of Fuckery"

I love it.