Yesterday after the FED meeting minutes released, market began to sell off. But it was interesting that a lot of strong stocks went up and held very well in the yesterday session. For example, MDVN was up almost 7 percent, URI, GNC, LULU and RAX. These strong fundamental stocks did very well. Hence I was eluded that these good stocks would be hold well or have tiny dip even though market had a coming correction. I am totally wrong which turns out today.
It is funny that I bought RAX yesterday around 2:00pm before the FED meeting minutes released. I totally forgot what would happen. At that time, RAX seemed to have a coming breakout. Then bang, it started to sell off after the FED meeting, but came back nicely by the end of session. But today, RAX had a 4% downside. I am still holding this losing position. Another naive mistake for me. I thought setting a market order at 9:30pm to cut my loss for RAX and LULU. But due to the good fundamental of these stocks, I did not set my stop. Today, I saw RAX dived hard. LOL, I did not have these bad trades for a while. I thought I had a good risk management recently, but I still made the mistake. What did trigger my mistake today? I think it is the big gap down at the open. My entry for RAX was 59, but it was open at 58. I did not want to take the quick overnight 1 dollar loss, so the bad downside came.
Today it is a good lesson to remind me how to stick to the rule and have a good risk management.
No comments:
Post a Comment