Thursday, July 15, 2010

Added to ATHR...

I added another 130 shares to my short position in ATHR @ $30.12. So now I am net short 250 shares of ATHR at an average price of $30.06. My stop loss on the entire positions stand at $31.00 and my target is $27.00.

This pullback in ATHR very closely resembles the last one that took place in mid-June. So it seems that a sell off tomorrow and into next week is very likely. However, I understand that there are no certainties in the stock markets and so my stop loss remains firmly in place at $31.00.

Trading this market has been tough. However, I have compounded it by resorting to impulsive trading and by being impatient and not allowing trades to work out. It is very hard to see your account decline and the natural inclination is REVENGE! I NEED TO GET THAT MONEY BACK!!!

What I have started doing to combat this is to think of my trading as a game and further to think of each trade as an opportunity to win a point. I do not win a point by being right because I do not have control over what the markets will do. However, I win a point when I plan a trade and follow through on my plan and vice versa irrespective of the trade's outcome!

Since I believe my system has a positive expectancy. Then by not losing points I should make money in the long run with the only factor affecting the rate at which I make money being market conditions ( i.e. strong trending markets vs choppy volatile market conditions).

Good luck and good trading!

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