Wednesday, August 13, 2008

8/13 - Note to Self

Huge profits have been given back to the market as many notable signals were ignored by my analysis. Its time to give myself another lesson and to learn from these mistakes:

1. respect the spinning top doji at potential resistance.

time and again we saw it in QQQQ yet never thought to take profits. that was a big mistake...SPX had one too which usually signals a possible reversal day the day after but i ignored those...and XLF has shown that these are very strong at potential resistance but again they were also deemphasized...

2. I need to mark sell (take profit) points on my analysis as well as my holdings' charts.

its very important to hold winners as long as possible to be successful, but when huge moves are made in a very quick fashion, its a smart play to sell some positions when potential resistance gives signals. I have always ignored targets as i don't like to sell early (based on my trading history) but i think that its best to watch out for them in order to stay unbiased and be smarter with money management. BUT keep in mind to milk the winners...TIMING is key....(for everything in life)

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