-I made an excellent trade...but I lost money in it! I went short $BBD against $SPY as shown in the chart...but it was too early...literally. I established the position between 11.45 and 14.45 . Now I know these type of trades and Brazilian ADRs in particular work best if established late in the day or early next morning...or put another way, the outperfomance usually lasts for at least a day . I had had some good trades and was too confident and anxious to "get some more".
- I was forced to cover the next morning (dollar limit stop loss) as shown in the chart. Had I been more patient when entering the position I would have been able to exit later in the day at a nice profit.
- The lesson , which I should know by now, is best illustrated by Mel Gibson in Braveheart. As the English cavalry attacks he shouts "Hold ! Hold!" (as shown in the video at 1 minute 23 seconds) right until the last moment .
If you like to link trading lessond to films, here is another I did a while ago :on stop losses and Peter Sellers in the film "The Party" .http://jpotrading.blogspot.com/2010/09/link-between-not-using-stop-losses-and.html
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