Huge beating

I took a huge beating today to the tune of a $700 loss on one move.  I was betting against DRYS going up.  Well it kept going up and up and up and up.  Breaking resistance point after resistance point.  I had initially setup a stop loss at $8.45 and decided I was going to average up my short position until I can at least get out scott free.  Well that ended up being a huge mistake.  I was short DRYS to the tune of $20K and it just wouldn’t let go.  I finally gave up and started incrementally exiting my position.  At the end of it I was down about $700.  Effectively erasing all my gains for the week and setting me back some.  I even transferred more funds from my bank account to maintain equity.  Afterwards on an emotional pull I started trying to get the money back on other moves and would make modest gains but suffer even more losses.  I ended up taking a breather and decided to chill out.  A dark day indeed.  Quite a learning lesson.  Respect the stops.

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One Response to Huge beating

  1. Curt says:

    A quick look at the chart showed that if you waited until the end of the day it went down to $8.22.
    I guess you’ve learned to follow your own advice.
    Did you see (google finance) that the option traders had been very positive? The company also had a good earnings report. Those trading on the good news were right this time and probably took profits at the end of the day. You were right about the unsustainable up move but you couldn’t afford to wait it out with such a large position. Enjoy the weekend and good luck for next week!

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