Daily Review

Today's market was even harder to trade than yesterday's. I was able to figure that out soon after the market opened and reduced my trading considerably. Sometimes it's just better to be out wishing you were in than being in wishing you were out. But still, I lost $$ today. Still all comissions, as I was able to scalp back (shorting F and FAS) the disastrous first trade of the day: GENZ. So let's dive into it.

Short Genz:

shorted: 55.49, 55.56
covered: 55.81

reason for shorting:

• the daily on this thing is just calling for a short
• price on 5 min was stuck under 5, 10, 20, 50 ma's
• shorted as the price surged back from morning lows and hitting all these ma's with an overhead wick.
• spy was consolidating after a huge gap down, I thought that'd be a continuation of downside pressure.

reasons for covering:

• it was my first time playing this stock..and a characteristic of high priced stocks is volatility. man did this thing wick back and forth. the spread was huge too. Although the idea to short was a right one, but I just feared that I may had gotten a horrible entry.
• the market wasn't helping either, as spy was making a "U" reversal to the upside.
• I cut the losses as price took out those morning wicks 55.75. Due to large spread, I got a horrible fill.
• but luckily the stock surged to 56.30 following move by BIIB.
  

lessons learnt:

• highly volatile stocks are better traded as swings, with smaller size and much higher wiggle room, especially when the spread is huge.
  
• i'm just horrible trading high priced stocks!
• i was in it with too big a size, being too cocky with my thinking.
• i got too excited again and wanted action and I paid for it.