Tuesday, July 2, 2013

Rules Were Meant To Be Broken

I know. Probably the worst thing I could do as a trader... not follow my rules.  I try though. I really do.  Plus, I don't know if the "rules" I make are necessarily good ones.

I have been getting hammered by $LULU both ways.  Up and down.  It keeps looking like it should retest a support but then does the opposite. Finally getting caught on the wrong side of a Friday rally when I really needed it to drop before expiration.  Starting to think this whole MM and pinning thing isn't just people whining about losing.  So after the 3rd bad trade in a row on $LULU, I told myself I was never going to trade it again. I even tweeted, "Officially on my do not trade list."  Well what did I do in the next 20 minutes? Took on a Put trade when it hit the 200d sma and retreated.  My theory is that it won't break the resistance and then finally trade down to the support levels I originally thought it should have.

So I broke a rule. But in my own defense, I think it was a stupid rule to begin with.

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