Nov 142008
 

Two closes below the wedge is certainly not good news. I am loath to push my luck when the trade doesn’t go as expected. There are countless opportunities in the market, and the one main goal for any trader should be to preserve his/her capital to be able to trade again. So I am going to get out of my Citi position at a small loss today. My average rate is $11.05, and as I made 25% on my previous trade, I am willing to give it all back on this trade. (unfortunately I made the 25% on half the size, hence I can lose only about 12% on this trade). Hence anything above $9.75 should be ok for me, but I don’t know how it is for you. Remember one thing, folks. Our goal is to make sensible trading decisions. That I was looking to double my money is not the criteria for when I should get out. The criteria is the markets did not play out as I originally planned, hence I am out. With the S&P500 making a strong come back from near the 830 support level, we might see some follow-through buying today, and that will be a nice window to exit gracefully. Ramki

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