Friday, September 4, 2009

Winning a bit on MEG due to DJIA

After buying MEG at 1.5 the other day, I bought another set of MEG at 1.48 yesterday since DJIA selling lessened, I tried buying it at 1.46 but it was impossible to get in, which I think is the support level of MEG.

The average buy price I have for MEG is at 1.49. Actually, according to Jesse Livermore, what I did was a bad idea.

I bought MEG at 1.5 to test the market, I was wrong and it slid to 1.48 (I should have stopped buying or sold the position) Then, I bought again guessing that 1.46 is the support level and there's nowhere to go but up. I just got lucky this time, but I should not make the same mistake again. I should have bought another set at 1.52 and 1.6. Since, the target price I'm waiting is at 1.72 - 1.8.

Anyways, what's done is done. I'll see next week if there's an uptrend on DJIA and on MEG stock. I'd probably buy again at 1.6.

Also, since I have two accounts, one for long term and one for short term trades, I've read that trading stocks for a long term is really more risky than having short term trades. Because, the market gives us good (uptrend) and bad (downtrend) signs based on the charts. Long term traders, ignore these signs and ride the ups and downs of the charts. That is OK unless it is October 2008.

So, I might rethink my long term account, I'll probably sell all my long term stocks, put the money on my citiseconline account. Also, I've given it much thought, the reason I was losing on my trades is not that I trade constantly, it's because I was too impulsive and impatient and let greed get in the way of my logic.

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