At a time when a lot of people were expecting a correction in the market, it finally came and who knows how much further down we are going. It came during a time while I was long three stocks and i got almost immediately stopped out of all of my positions. But because I am pretty convinced that we are not going straight down from here, I later went long RIMM for a swing.
It is kind of a gamble, because if the downtrend of Friday continues I will be stopped out with a loss again.B ut I took only a small position and the risk reward was good in my opinion. I will watch the news and the market’s reaction to it. You have to have the right mindset during the day,because time and time again the market looks like it is going to crash (at least to me,when it takes a few hours to climb 2 points in the ES futures and then looses them in a minute). But every time something like that happened it only went back up instead of further down. It was a “buy the dips” market so far and I hope it will continue at least for now,so I can get out of my RIMM position with a profit.
I always tell myself that it doesn’t matter if the market goes up or down,but I always feel better if I can take along instead of a short.Perhaps I should make a list of companies I really hate,so i can enjoy shorting more,when the market finally breaks down (if that ever happens).