Complete Losers

Discussion in 'Trading' started by Rol, Mar 27, 2011.

  1. I remember holding a losing position once, a long time ago. I recall getting my first and only margin call and losing about 2/3 of my capital. I view the experience as part of my education: "don't hold on to a bad deal."
     
    #11     Mar 28, 2011
  2. Rol

    Rol

    I am currently down 0.82% in BBY, and down 0.14% in HMC. Should I be looking to cut my losses here and sell, or let the trades play themselves out? I guess what I am asking is, would you be a buyer here, sell short, or not bother at all? Since I plan to post the exits, I am curious on opinions.
     
    #12     Mar 28, 2011
  3. 4re

    4re

    If you are looking for a swing trade then Honda is very overextended right now. I would stay long on it.

    BBY, not so much.

    The important thing is to know why you entered in the first place and honor your stops.
     
    #13     Mar 28, 2011
  4. BwPirt

    BwPirt

    I wonder what the real percentage of stock traders use stops/limits. Just day traders? Or do long term traders use them as well?
     
    #14     Mar 28, 2011
  5. Rol

    Rol

    Between the two, I would put my money on Honda also, but as it is, my strat put it on both. Right now Honda is ahead by 1%. My "stop" is to use small position sizing, and have a hard exit rule in place when in occurs.
     
    #15     Mar 28, 2011
  6. 4re

    4re

    I would like to know that as well. I swing trade mostly and I also do some longer term trend following. I do not use hard stops at all. I know when I have had too much pain in a failed trade and I exit with a market order. Most of the time when I exit a losing position the market will turn as soon as I get out so I try to not exit unless I really have a reason.
     
    #16     Mar 28, 2011
  7. 4re

    4re

    I hope you stayed the course with HMC.
     
    #17     Mar 30, 2011
  8. Rol

    Rol

    No, my auto trading system sold HMC for small profit Monday and small loss on BBY today. Neither trade was remarkable. :(

    My HIT entry from yesterday did much better today. :p

    [​IMG]
     
    • hit.png
      File size:
      28.9 KB
      Views:
      217
    #18     Mar 30, 2011
  9. The two questions to ask yourself:

    1. What is my maximum drawdown amount I am willing to accept?
    2. What is my timeframe to "let the trades play themselves out?"

    You are holding stock in billion dollar companies. BBY pays a 1.90% yield and tends to rally during the holiday shopping season. HMC fell due to the unfortunate situation in Japan.

    Some analyst just gave BBY a "sell" rating and a "downgrade", yet another analyst may just as well come along and give either one an "upgrade" at anytime, and they could rebound.

    Hope that helps...
     
    #19     Mar 30, 2011
  10. Rol

    Rol

    Thanks ScalperJoe,

    Yes, stocks go up and down for many reasons, this is true. My time frame is < 3 days.
     
    #20     Mar 30, 2011