Friday, November 20, 2009

Lack of Discipline

HK MARKET:

I may have dodged a bullet this morning since all the shipping stocks were down big, but I think I just set myself up to catch one on Monday.

I was overly aggressive all day trading just one stock, HK:1114 (Brilliance Auto), due to the strength in the auto sector (both technicals and fundamentals look very promising). I was already correct in the afternoon, selling right before the market had turned, but 30 minutes before the close, I became greedy again and had the itch to trade. So, I ended up buying back the stock without a good set-up. Of course it went down, and I had to cut 2 flucs below my buying price (2.24). I wasn't done. 5 minutes before the close, I noticed that the stock found support at 2.21-2.22, so yes, I bought my whole position again at 2.23. Argh. Talk about the lack of discipline on my part.

The Dow Futures are down big again, and because there are no economic reports due today, the main market movers are the strengthening dollar and the bad Dell earnings/guidance, which came out earlier today. I believe (or more of hope?) that the expected drop tonight has already been priced in the Hong Kong market. Or else, I'll probably get killed on Monday. Sh*t.

PHIL MARKET:

I lost money today. I bought MER at 231 and sold it at 229. I also sold my whole position in CPM at cost. I'm all cash right now.

Funny. I'm very disciplined in the Phil. market, but in the HK market, I'm reckless. Why? The only reason I can think of is the fact that I'm down in HK, and I'm up in the Phils.

Lessons for today:
1. Avoid buying back a stock 30 minutes before the close. Limit buybacks in the morning, or right after lunch. Also, in these cases, position size must be lessened.
2. Plans are useless if you don't have the discipline to execute it properly. My original plan was to cease trading after I had locked in my profit. I didn't follow it. Again. So i lost money. Again. Greed and Hope are really my biggest enemies.

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