spread monkey
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Some of you who watch the U.S. Equity markets may have seen the move in the casino stocks today. The initial rise, quite substantial, was due to news that the Macau government will not be allowing any MORE casino licenses. This would give companies like MGM, WYNN, and LVS (Las Vegas Sands) more of a secure edge in that developing gold mine. More importantly, I knew it was behind a building buying frenzy that would most likely run a few more points very quickly, in all three of these symbols.
Here's my trade.
Heard news
Tried to buy at 69.6, then at 69.8, and so on
Finally Paid up and got 1200 shares. (chasing, my first mistake)
1200 Shares Long
Avg entry: 70.50
Avg exit: 70.01
In less than a minute after my entry, I was almost 2 points, when the stock reached ~72.45.
My thoughts while this was happening:
I bought high on the rise, I should expect a substantial pullback. This has not been a hot sector the last few weeks, like Agriculture or Oil, so It's not going to keep going on forever, buyers will let up, profits will be taken, pullback may be 1.5-2 points before this run continues, if it does.
so, when I saw it hit 72.45, I went ahead and entered my exit order for 72.20. (Waiting, Second mistake)
I was too late, stock immediately dropped back to 71.25 in seconds. I waited, HOPING it would coninue its run up. Third and 4th, the worst mistakes occured here and continued all the way until the stock hit 70.01 and I finally got out.
I cant believe I let this trade go so badly.
1st mistake: I shouldn't have chased. I know how these things can move, I should have just crossed it up to begin with to get my entry. Paying a 20 cent spread is nothing in a 3 point move if you only have seconds to get in.
2nd mistake: I knew how high on the run I was, and expected a substancial pullback. Instead of waiting for the stock to hit my 2 point target, I should have entered my orders at 1.75+ to begin with. Then I would have locked in $2100 in a matter of seconds to start my day.
3rd and fatal mistake: Trade wasn't exited properly like it should have been, but I've still got .75 points profit. TAKE IT...I didn't. Nor did i when it eroded to 0.50... 0.25...so foolish.
4th and worst mistake, I broke my cardinal rule and let this winning trade turn into a loser, and a substantial one at that.
For some reason ever since I got back from vacation at the end of March it's like I forgot all the things I have trained myself to do without emotion. So frustrating, and although I ended up even on the day, this still stings like... Any thoughts?
Here's my trade.
Heard news
Tried to buy at 69.6, then at 69.8, and so on
Finally Paid up and got 1200 shares. (chasing, my first mistake)
1200 Shares Long
Avg entry: 70.50
Avg exit: 70.01
In less than a minute after my entry, I was almost 2 points, when the stock reached ~72.45.
My thoughts while this was happening:
I bought high on the rise, I should expect a substantial pullback. This has not been a hot sector the last few weeks, like Agriculture or Oil, so It's not going to keep going on forever, buyers will let up, profits will be taken, pullback may be 1.5-2 points before this run continues, if it does.
so, when I saw it hit 72.45, I went ahead and entered my exit order for 72.20. (Waiting, Second mistake)
I was too late, stock immediately dropped back to 71.25 in seconds. I waited, HOPING it would coninue its run up. Third and 4th, the worst mistakes occured here and continued all the way until the stock hit 70.01 and I finally got out.
I cant believe I let this trade go so badly.
1st mistake: I shouldn't have chased. I know how these things can move, I should have just crossed it up to begin with to get my entry. Paying a 20 cent spread is nothing in a 3 point move if you only have seconds to get in.
2nd mistake: I knew how high on the run I was, and expected a substancial pullback. Instead of waiting for the stock to hit my 2 point target, I should have entered my orders at 1.75+ to begin with. Then I would have locked in $2100 in a matter of seconds to start my day.
3rd and fatal mistake: Trade wasn't exited properly like it should have been, but I've still got .75 points profit. TAKE IT...I didn't. Nor did i when it eroded to 0.50... 0.25...so foolish.
4th and worst mistake, I broke my cardinal rule and let this winning trade turn into a loser, and a substantial one at that.
For some reason ever since I got back from vacation at the end of March it's like I forgot all the things I have trained myself to do without emotion. So frustrating, and although I ended up even on the day, this still stings like... Any thoughts?
