Honor the Discipline!

Last week, I mentioned I made a QQQQ purchase ("toe in the water"); I also suggested that "since its now almost in the money by a half point, I’ll move my stop loss to breakeven. I’ll average up if we rally, and hold the position until it starts misbehaving."

As it moved higher, I also moved the stop loss with it. When it broke
$38 today to the downside, I was stopped out for a very modest gain.

If you bought something for a trade on Thursday’s plummet, you may be
getting close to breakeven on it (depending upon what you purchased).
Your discipline should be to never let a winner turn into a loser, and
never let a Trade become an Investment. You can always repurchase
something back if it starts behaving better later.

For now, if you took something in for a quickie, and it ain’t working
out, you should be thinking in terms of capital preservation, not the
next turnaround or bounce.

Category: Apprenticed Investor, Technical Analysis, Trading

Real Estate Dependency of Households

Category: Consumer Spending, Economy, Real Estate

Housing Leads the Economy Up AND Down

Category: Consumer Spending, Economy, Investing, Real Estate

Linkfest!

Category: Weblogs

An Explanation of VIX Options

Category: Technical Analysis, Trading

Stock Prices Adjusted for Inflation

Category: Data Analysis, Technical Analysis, Valuation

Hmmm, 36,000. Delicious!

Category: Financial Press

Read it here first: the 100-year Dow Chart

Category: Investing, Markets, Psychology, Technical Analysis

Cost of Living

Category: Economy, Inflation

Watch the Nasdaq Channel today!

Category: Psychology, Television, Trading