{"id":1419,"date":"2009-07-10T16:20:51","date_gmt":"2009-07-10T21:20:51","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1419"},"modified":"2009-07-10T16:20:51","modified_gmt":"2009-07-10T21:20:51","slug":"from-trade-to-hold-to-cover","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/from-trade-to-hold-to-cover","title":{"rendered":"From Trade to Hold to Cover"},"content":{"rendered":"

As an intraday trader it is important to have a playbook of Trades to Hold. \u00a0These are longer term intraday trades where we do not cover unless there is a reason to cover. \u00a0And this means something substantially different with our stocks. \u00a0I made a Trade to Hold in CVX on the Open and then I covered without anything really substantial happening. \u00a0Was I a wuss? \u00a0 Let’s discuss.<\/p>\n

Often developing traders believe they are “trading like a man” for holding a position or “willing to take some pain.” Sometimes I think these traders confuse themselves with Maximus from “Gladiator” (music by Hans Zimmer for die hard fans). \u00a0 Trading does not require the courage of a gladiator. \u00a0Pretending it does is sometimes strange.<\/p>\n

So I am in this CVX short. \u00a0It is working. \u00a0 Technically below 61.90 there is potential downside to 60. \u00a0Crude is below 60, a support level, and weakening. \u00a061.75 is \u00a0our BFF (Best Friend Forever) for this intraday trade. \u00a061.75 is substantial intraday resistance. \u00a0So I put on a Trade to Hold.<\/p>\n

And then something funny happens on the way down to 61.10. \u00a0CVX is not showing us weakness on the tape. \u00a0Objectively I determine that CVX went down mainly because Crude weakened. \u00a0CVX is not necessarily very weak. \u00a0It is just that the oil sector got weak. \u00a0But chop anyway.<\/p>\n

I am not interested in proving I am as tough as Maximus. \u00a0I am interested in dispassionately observing the market and making trading decisions that are in my best interest. \u00a0And trying to hold the longest. \u00a0And attempting to hold the most. \u00a0Because you want to show your backbone is a little odd and not a sustainable long term strategy.<\/p>\n

So CVX was not showing me weakness. \u00a0And I had a choice. \u00a0Should I cover or hold? \u00a0Objectively my indicators told me that this position was a cover. \u00a0So what did I do? \u00a0I covered. \u00a0A cover is a cover is a cover.<\/p>\n

I started with a plan to hold for a longer time period. \u00a0But then the market presented me a gift. \u00a0It spoke to me. \u00a0It said, “Mr. Bella I am no longer weak at these prices.” \u00a0And so I adjusted my trading plan<\/a>. \u00a0Was I wuss? \u00a0No. \u00a0I did what was in my self-interest and closed a position that at this time did not offer an excellent risk\/reward at this price.<\/p>\n

It is tough enough to be a consistently profitable trader. \u00a0I don’t need to make up fake standards that have nothing to do with making money to judge myself. \u00a0I am not Maximus. \u00a0I am Bella, consistently profitable trader, interested in making rational trading decisions.<\/p>\n

Enjoy your weekend. Don’t forget to follow us on Twitter!<\/a><\/p>\n

\"CVX<\/p>\n

\"CVX<\/p>\n","protected":false},"excerpt":{"rendered":"

As an intraday trader it is important to have a playbook of Trades to Hold. \u00a0These are longer term intraday trades where we do not cover unless there is a reason to cover. \u00a0And this means something substantially different with our stocks. \u00a0I made a Trade to Hold in CVX on the Open and then I covered without anything really … Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[],"class_list":["post-1419","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","no-post-thumbnail"],"yoast_head":"\nFrom Trade to Hold to Cover | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/from-trade-to-hold-to-cover\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"From Trade to Hold to Cover | SMB Training\" \/>\n<meta property=\"og:description\" content=\"As an intraday trader it is important to have a playbook of Trades to Hold. \u00a0These are longer term intraday trades where we do not cover unless there is a reason to cover. \u00a0And this means something substantially different with our stocks. \u00a0I made a Trade to Hold in CVX on the Open and then I covered without anything really ... 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