I have been thinking a lot over this long weekend about losing and a fear I have in that regard. This is something I have been working to overcome but it still plays a role in my trading. Friday's end of day action started my down this path. It was a very slow day trading and though the trend was down on the day and I could see we were trading at some significant resistance levels around 2pm I could not pull the trigger on a short position. Obviously this would have been a great trade as the market soon plummeted nearly 10 points from where I would have entered. The question I struggle with is whether or not it was fear of the trade going against me or more so that the market was so slow, and it was the last trading day of the year and I just simply did not want the risk on this particular day. So was it fear of a loss or was it more of an educated decision to simply stay out of this market on this day. I took a phone call about the same time I was looking at this trade so that played a role to.
I will be conscious of this fear as we go into this first week of 2010 trading, working to eliminate it from my trading.
Happy New Year!
ps. added a RUT IC last week at 680/690 and 540/530. More concerned about the downside than the upside at this point. If the mkt continues to move up I believe my opportunities to protect the upside will be greater than the downside, hince the lower put strikes and some protection already in place at 580.
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