This was by far the most hyped up day I've traded. CNBC was talking about all of the govt deal. Injecting money to the global economy through central banks, banning shorting on 799 financials(which by the way had many irrelavent companies on the list by mistake), and the continued ban on naked shorting. Dow futures rocketed. Seriously, these CNBC reporters, were merry... As was I, I was sitting on 1k profits on my o/n RAMR position. Only a 1.5K position and 66 percentage gain! What an idiot I was to only take half of my take. I should have easily kept it. Instead, i started asking the GOTS room for help. I sold half of my keep.
Ring the bell. I saw a huge paradox in numbers. Fin's tank, $DJI rockets. Seriously, 5 minutes into the day and were in the 11400's of the $DJI. I know whats coming, a sharp selloff, and a sharp buy back. What i didn't realize was that this would happen more than 4 times. DSL was my pick for buying off the sell off. I saw a return to 3$ and 2.94 was a great entry. Of course, I entered to quick in the morning volatitliy and got spooked with my chart staring when it was in the 2.70's. I wanted to keep my gains from ramr, so I took a 200$ loss and moved on.
Que DSL again. I began trying to enter at 2.70's. Volatility had faded and I saw a 10/60 cross. Got my fill at 2.89 and then came a long hold while also watching my RAMR position.
I walked away, saw probably 5300 in my account a few times but greedily held.
EOD buy up didn't come, and I had held to long. I started wanting to take my profit. Boom out DSL at 3.07 for a cool 200$ back and closed my RAMR in the 1.90's for another $150
My account sits at $5113. I am finally green, made back my 300$ loss, and broke 5000 all in one series of trades.
I should scold myself on using 2 day trades. I was too eager, and should've remembered this will cost me next week. I am more confident on o/n positions now, so perhaps I will play those.
I should mention the RAMR pick is completely luck. The news hype from the govt help is what gave me that 66% gain. Nonetheless, be on the lookout for more news, and more failures. This problem is far from over. Banks like GS and MS should have leverage ratios of 20's to 1. Other firms should not. I posted specifially on leverage before any of this happened in the summer. Credit cards became a habbit, money was injected into the market at incredible rates b/c of the high price of homes, wall street joined, defaults happened, completely fucked....we are done being yet.
A niceeee.
