I am usually very quick at taking profits. But this time I said to myself, I am going to be patient and ride on my winner -- shorting AAPL at a good entry of just below 560 (see first yellow arrow). The whole morning I had several opportunity to take profit, but I held my urge. Every time the green dissipated, it was painful. But I said to myself, no pain no gain; this is what one needed to go through to get bigger gain.
Now the horizontal resistance was finally breached. Guess what? TraderFlorida, the AAPL guru, actually talked down about the volume, or the lack of it as usual. So I actually added to my short position when it went up again because I don't see volume confirmation and the price could be just running on fumes. Then it actually popped out of the rising channel, WITH VOLUME! I finally bailed, successfully in turning a profit into a loss.
- Own your own trade. Listening to others will only confuse yourself.
- Never let a winning trade turn into a losing trade, even if it means exit at breakeven and lose the profit.
- The adage does not account for how often the draw-down exceeds cost before the target is reached.
- Jinx is well and alive. All the pain endured didn't pay off.