Its funny how our minds can play tricks on us sometimes isn't it? Like yesterday for example, I bought $ZNGA. Which, using history as a guide, has never really worked out all that well for me.
So I bought it and I held for a little while and the market started to weaken. So what did I do? I dumped $ZNGA! Why? What did $ZNGA do that told me to sell? NOTHING!!!
After reviewing the trade the stock did nothing to warrant me selling it. As a matter of fact it held up very well and I could have even added to my position. Not 5 minutes after I sold, it broke out of the flag it had been coiling in on the 5 minute chart. So why did I sell the position out flat? Essentially making me nothing and my broker his commission. I think it was my mind playing tricks on me, my personal history with trading the stock played a big role in the trade and when the overall market got a little soft I was quick to jump out of $ZNGA so that it wouldn't turn into a loss >again. Even though the $ZNGA chart did not violate or breech my mental stop, it never even came close. So the lesson for me is simple, I need to trust my strategy, respect my stop and my trading plan regardless of my trading history with a particular equity.
This works in both directions by the way. I can't tell you how many times I have had a stock that I have done really well with in the past and it falls below my mental stop. I think to myself , "It will come back!" "Its a money maker !" "Strong stock its just a week hand shake out!" Only to have the stock continue to fall and then having to take a loss or should I say a bigger loss then I would have taken if I just stuck to my plan and trusted the charts. Moral of the story ? Have a plan and stick to it for each and every trade. Discipline! Discipline! Discipline! Don't let your emotions or your mind play tricks on you and your trading rewards will be far greater in the end.
Morning movers and other stocks that caught my eye
$SUMR earnings 3 dolla roll , $PDII earnings beat Thin float nice chart for bottom bounce, $III Earnings beat coiling right under the 20 day and 2 dolla holla, $NSPH distribution agreement PR testing 200 day going to crack 3, $OPXA earnings this morning, $SCMP bull flag,$FCH daily looks hot for 6 dolla holla,$GIG testing the 20 day earnings last night, $MGM pr, $PRKR, $ECTYstill not overbought on the daily, $AMRN like the daily, $ARC had some volume yesterday getting ready to Break out Daily is hot!! $HIMX Seeking alpha, $HTCH 4 dolla holla 52 week highs, $MOBI possible red to green,$LEDS bounce off of moving averages could continue, $HAWK upgrade recent ipo,
I will also be looking for the rare earths to possibly rebound today we had to many eyes on them yesterday.
Seeking Alpha
Today's Markets:
In Asia, Japan -0.16% to 14758. Hong Kong -0.26% to 22930. China -1.11% to 2217. India +0.16% to 19722.
In Europe, at midday, London -0.15%. Paris -0.53%. Frankfurt -0.26%.
Futures at 7:00: Dow -0.25%. S&P -0.25%. Nasdaq -0.23%. Crude -0.51% to $94.68. Gold -0.5% to $1427.00.
Today's economic calendar:
7:30 NFIB Small Business Optimism Index
7:45 ICSC Retail Store Sales
8:30 Import/Export Prices
8:55 Redbook Chain Store Sales
Notable earnings before today's open: HCLP, PAAS, VAL
Notable earnings after today's close: A, EXP, XONE
Briefing.com upgrades and downgrades coming soon
Good luck trading all !!!
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