Showing posts with label Never get cocky. Show all posts
Showing posts with label Never get cocky. Show all posts

Tuesday, December 28, 2010

Never get cocky

Just wanted to point out a couple of charts from today. Here is a 5 min chart (covering 3 days) of a stock till 3:45 PM today. Down less than 2% for the day. Minding its own business.


And here is the same chart, with the last 15 minutes of the trading day included.


Ended over 14% down for the day. Even if someone had stops in place, chances are one got a bad fill. I just checked and there was no news related to the stock, to justify such a drop, well at least not yet anyway. Just wanted to say that never got cocky. Always respect the markets. You might have had a great day or a great year, or might be on a hot streak, but always remember your place with respect to the markets. Be humble and gracious when you are running hot and feel like you can't place a trade wrong. And always, please always, exercise proper risk management.

Take care and good luck!