Here is how I lost only a little bit over 300 on my GS short position. Here is the playback of this swing trade. I opened a short position on 3/30/09 @ 103.91 and it tanked to around 100. So there were around 400 paper profits and I ended up losing 300+. If I had the ability to look ahead in time, I would have covered my GS around 100. This kind of scenario happens only in my wildest day dreams. To achieve something extraordinary, you will have to be a dreamer, a doer and a calculating risk taker. Here is why… For example, when you were a kid and your parents always told you that you should ……. I am sorry about digressing. Back onto trading.
Ok so that was like 700 dollars from +400 to -300. I am totally fine with this. I was just following my trading plan. If every time I take a small profit like this, I would never ever catch anything like this (FAZ: 31% Gain (8k+) in 2 Days) or that (How I held onto FAS for a 26% gain for a day trade.). I closed the position this morning when I saw something strange. The market gapped down quite deeply. Yet GS showed all upward strengths. Within 5-6 minutes, it turned green while the market was still very weak. Something was not right. If a stock does not act right, get rid of it. GS should have gone down with the market. Yet it did not. So it did not act right and I got rid of it quickly. I would have been stopped out later anyway. But my quick reaction saved me a couple of hundreds dollars. Here is the chart and my GS trade.
I took a day trade in FAZ and made 400+ and I also opened a small swing long position in FAZ. Let’s see how it plays out.
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