Wednesday, October 3, 2007

Hard day (relatively) for a trader

The market was going my way for most of the day. Most of my positions were gaining profit and it all seemed great. However, in the last hour of the market one my positions (SSTR) flipped and was declining fast. It ended losing 5% on that trade.

As I use a computerized system, I bought this stock even though it gained ~90% last week. My trading philosophy is that I act according to the signals I receive from the system. That means, no discretion is involved. Yesterday, I was able to buy SSTR at the bottom after waiting for the middle of the day. The stock lost about 20% yesterday and I was sure (still am) it was for the bearish feelings people had after the steep move in the previous week. Today, the stock traded for most of the day between 5% to 7%. Suddenly, is started to decline rapidly, and ended losing about 5%.

I need to remember it's all part of the game, and as I have no discretion while using a computerized system, I need to relax and hope the system knows what it's doing :)


No comments: