STOP THE INSANITY - 8/8/2007

It should have been an easy profitable day for me. But 3pm is the new Witching Hour. Anything can and will happen.

I bought 1495.25 and was looking good with the market at 1510. It was exactly as I had predicted. We were in the midst of the mega short-cover rally.

But then at 3pm, everything turned. Was it a liquidating hedge fund manager? Was it China dumping bonds? Who knows.

I was outside, and I did not have a trailing stop. I went from a 15pt profit to a 8pt loss. DUMB, DUMB, DUMB.

I should be smarter than this.

LESSONS:

1. Style drift. I tried to be Barry Bonds. I tried to hold out for a 2 day home run. I should've stuck to my 10-15pt winner target.
2. Trailing stops. Use them!
3. Prepare for anything. If I cannot watch the screen, then you need Gene to watch it for you.

I should be smarter than this now, but I'm still making very basic mistakes.

There are sins of omission and sins of commission. Yesterday, I made basic mistakes of omission.

That having been said, the market is just totally crazy right now. But the calls are still ok. The market has some logic to it.