Tuesday, July 5, 2011

Lost a ton in shorting

Most of the gains from last month are wiped off because of not capping losses on SINA which I shorted at 96. Now it is at 110e. I should have capped the loss at max 7 percent i.e is around 104. That was a stupid mistake especially when the graph of SINA does not follow the conventional graph. This stock is very volatile. For volatile stocks one has to be very careful when shorting and also when the stocks deviates from the standard model graph.

The stock does show signs of lossing demand. The rise is strong. Buying is strong.

Also after the correction it is good to be in stong stocks what were consolidating like dollar tree and fossil. This is a blunder too. 

May be if one is doing day trading and if one gets a loss one can just take the loss for the day and start the new day fresh. That will contain the losses too.

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