Tuesday, August 4, 2009

Get Out the Way

Today, I cut my short positions.  This just felt like the wrong thing to do here with the market continuing to rally.  I do expect a pullback relatively soon but I have left the money in these shorts far longer than I wanted to.  I tried to stay disciplined and say I would get out of the short position when I lost 10%, and I didn't do that.  The trade kept falling behind and I kept waiting for the turn that never happened.  Rather than continue to lose money, even though I think the market will turn soon, I got out of the trade and cut my losses.

I still have smaller positions in this trade, but it is past the point where I think I can reasonably make more money than I already lost.  Had to do it.  There comes a point where you have to admit you were wrong and just move on.  I don't think the market takes off from here, but I'm also not so sure we can come back down to retest the lows.  If you have shorts on at this point, just get out of the way of this market.  I know with my luck, this will exactly mark the turn, but I just could not continue to fight the market.

1 comment:

  1. Market is down this morning. Wouldn't it be funny if you actually did get out on the top.