Friday, December 28, 2007

Swing Update:, Inc (NASDAQ: AMZN)

"Greed is good."
- Gordon Gekko

...... Oh really?

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I bought Inc (NASDAQ:AMZN) yesterday at $94.3, with the initial stop @93.8.

My first thoughts when I saw the above chart this morning was, "Wow, what a sweet trend!". Then the realization that nothing can move upwards without taking a breather sobered me up.

AMZN reached my target of 95.50 (which would have given me over 2R on the trade), and I should have sold, but instead, I got greedy. Despite what Gordon Gekko says, greed is bad, especially bad on thinking and acting objectively with regards to my AMZN trade.
Anyways, I've made enough mistakes to know that I must and will sell when AMZN breaks below the above manual trendline that I drew, and stays below the trendline for more than a couple candles.

That housing report which led to this morning's 7am reversal gave the bears momentum for the second day. Gap filled, and now many sectors are falling into the red.
I sold AMZN at $94.22, gain of -$0.08, or almost -0.2R.
Will be watching both POT and AMZN for another low risk entry, but will probably need to first wait for this latest round of selling to run its course.

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