Friday, February 19, 2010


Insurers sure seem hot. Lots are popping up on volume.

There seem to be some good trades that could have been made off of support and resistance zones for nice money.

I can't trade the unknown. I do not think many foresaw rate change last night, have to just stick to a plan, ignore news and fear. Raising rates is healthy and normal at this level.

Risk management: I've many thoughts on this this morning. Risk of ruin is something I was either unaware of or ignored when I started trading. I am proud that I am decreasing my risk of ruin by using some simple position sizing methods when I enter trades. I am also proud that I am no longer entering trades with unsettled funds, an absolutely horrible habit to have been practicing. It caused me much grief. I am also doing better having predetermined exits when I enter trades.

I am pretty sure that I have read of some folks saying not to worry about entry points for stocks, one needs to worry about the exits. As I think about this stuff, I see it as true. I entered four different issues, without them clearly having systematic entry points, all were profitable as of the close last night.

I am reading Super Trader by Tharp, good stuff.

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