Tuesday, September 26, 2006

The Rules of the Game

Well, today, I almost followed all of my rules.
I set my alerts for BEBE, and when it went off, I exited my position.
For PCLN, I was actually watching it drop from 36.4 down to 36 at the time, and suddenly saw huge blocks appear on the ask when it hit around 35.95. Well, that was enough of a warning for me, and soon after I sold, it dropped as low as 35.55. After that I never watched it, although I should have - had I continued watching it, I would have tried to get back in on the higher low.
The one time I didn't follow my rules was in the case of HANS. Not sure why my brain froze when I saw it drop below 35 early in the morning. It never even made it back above 35. When I realized that I just froze up, it was right after my PHM purchase, so I decided to shut it down for the day at that point.
Probably the maximum open positions that I should have at this point is 4, at least until I have a bit of a track record of making fewer mistakes.

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