Market Precognition

The goal of this blog is to PRE-RECOGNIZE next several moves in the market
I focus on trading the S&P emini futures and T-notes futures.
A loyal reader will begin to understand the themes, memes, and sentiment that leads the market.

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Johnny Hom

Wednesday, November 26, 2008

Never Short Obama!





I am getting killed shorting today. We have a series of compounding errors:
1. I did not sell the puts on Monday creating frustration.
2. I did not execute my plan to buy Obama and then sell Obama. This week he has spoken on Monday, Tuesday, and today.
3. I shorted into a dull day (day before Thanksgiving) that is illiquid.
4. I kept trying to play the same direction and within the same hour.

I must have the discipline to not play when I am off.

I had my biggest trading win last week (+6800) on Friday buying up the Obama rally. Today, I had my biggest trading loss (-5250).

LESSON: BIGGEST LOSSES FOLLOW THE BIGGEST WINS.

Don't do stupid things when you feel emboldened.

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