{"id":1601,"date":"2009-07-29T18:45:35","date_gmt":"2009-07-29T23:45:35","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1601"},"modified":"2009-07-29T18:45:35","modified_gmt":"2009-07-29T23:45:35","slug":"keep-it-together","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/keep-it-together","title":{"rendered":"Keep It Together"},"content":{"rendered":"

Panic is not a good thought for a trader.\u00a0 And during really crazy moves in a stock, when you may be tempted to panic, calm is required.\u00a0 I had such a situation on the Open with MHS.\u00a0 Let’s discuss.<\/p>\n

So we start the day and Alexander gets me into this MHS.\u00a0 I wanted to trade something else but he just bullied me into this MHS as most subordinates do (no they don’t!).\u00a0 MHS is doing this above below nonsense noise at 52, which for all those who carp about the programs understand.\u00a0 51.90, 52.10, 51.93, 52.05.\u00a0 Yeah, yeah, yeah.\u00a0 Nonsense noise.<\/p>\n

But 52 is an important technical level.\u00a0 A hold above 52 might be the catalyst for a significant upmove.\u00a0\u00a0\u00a0 And in fact MHS 52.10 holds the bid and makes an explosive upmove to 52.65.\u00a0 I wasn’t in this move.\u00a0 I am certain this was Alexander’s fault I just cannot remember how at the moment.<\/p>\n

So I missed the move.\u00a0 But then MHS dropped out to 52.20 quickly.\u00a0 I bid 21c, long.\u00a0 I bid 11c, longer.\u00a0 I bid 52.01, even longer.\u00a0 Here I had 3 lots long of a stock that had just shown its strength, right near support.\u00a0 This was a good position.\u00a0 Or so I thought.<\/p>\n

And then the fun began.\u00a0 Remember that 52 support level?\u00a0 Well apparently the buyers at 52 didn’t.\u00a0 51.60 was MHS’s next stop, where it slowed.\u00a0 I was long 3 lots 40-60 cents out of the money.\u00a0 Awesome!<\/p>\n

What do I do?\u00a0 Do I hit the bids and take my rip?\u00a0 No. Do you scream, “Alexander what have you gotten me into?”\u00a0 No.\u00a0 The odds of the stock trading up next are near 80 percent.\u00a0 The odds of MHS trading up near 90c are very high.\u00a0 So you remain calm.\u00a0 You focus on taking the best sale possible.\u00a0 You will take your rip.\u00a0 But you must remain calm so that you take the smallest loss possible.<\/p>\n

If MHS did not trade up near 52 like it did and next headed below 51.60, then you hit the bids and take your rip.\u00a0 But when a stock falls this quickly, you missed your exits 40c ago, and now the stock has slowed, then you try and sell the stock into the next upmove.\u00a0 And this is what I did.<\/p>\n

Out 93c.\u00a0 Out some more 97c.\u00a0 Flat 52.07.\u00a0 Crisis avoided.\u00a0 I took a rip, but nothing to ruin my trading day.<\/p>\n

There are times when you are in such a bad spot that I would never even consider panicking.\u00a0 Immediately I know that I am so screwed that to spend any energy on anything else but processing the best way to exit would be irresponsible.\u00a0 I need to focus and right now so that I don’t take a rip that will ruin my week.<\/p>\n

My mind is quiet.\u00a0 I am not angry.\u00a0\u00a0 I am indifferent.\u00a0 My mission is to take the smallest loss possible.<\/p>\n

This experience reminds me of Eddie Murphy’s character in “Bowfinger”, a paranoid, delusional basket case of psychological problems. \u00a0 His mantra to avoid a mental breakdown is “Keep it together.\u00a0 Keep it together.\u00a0 Keep it together.”\u00a0 And as a trader so must you.\u00a0 Don’t panic.\u00a0 Take the smallest loss possible and get on with your trading day.\u00a0 There is a chop right around the corner.<\/p>\n

Best of luck with your trading! Don’t forget to follow us on Twitter!<\/a><\/p>\n

\"MHS<\/p>\n

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

Panic is not a good thought for a trader.\u00a0 And during really crazy moves in a stock, when you may be tempted to panic, calm is required.\u00a0 I had such a situation on the Open with MHS.\u00a0 Let’s discuss. So we start the day and Alexander gets me into this MHS.\u00a0 I wanted to trade something else but he just … 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":[339,340,18,301],"class_list":["post-1601","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","tag-loss","tag-mhs","tag-smb-capital","tag-trading-blog","no-post-thumbnail"],"yoast_head":"\nKeep It Together | 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\/keep-it-together\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Keep It Together | SMB Training\" \/>\n<meta property=\"og:description\" content=\"Panic is not a good thought for a trader.\u00a0 And during really crazy moves in a stock, when you may be tempted to panic, calm is required.\u00a0 I had such a situation on the Open with MHS.\u00a0 Let’s discuss. 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