Monday, November 20, 2006

Boring Day, Small Scratch

Wow, my first losing day in weeks! It's okay I'm not worried as I implemented strong money management today, and risk control. Stop Limit Orders are great when you've draw your trendlines, taken an overall glimpse of the market, and made the decision to pull the trigger. I personally like stop loss orders, as many oppose them, but they can be fairly reliable in a sideways market, and should not be used on Momentum plays, where a stock fluctuates $1.00-$2.00 every hour, it will blow right through your order.

Anyway, I took a scratch of a $200 Loss today.

Hope you did well out there. Remember the name of the game is "Capital Preservation" not "Day-trade your Life Savings Away."

Calculate your risk, and pull the trigger.

No comments: