Monday, March 23, 2009

I'm such a wimp

I don't think I was alone in expecting this to be a down day. After the massive gap up, I was still doubting this rally--toxic debt relief and all.

I dipped my toe in after the doji at 11:30 (first green arrow) and quickly took my profits at noon. As price flatlined I ran some errands expecting the market to regain some sanity over the lunch hour.

I felt a bit vindicated when I got back as price head downward and started licking the 50 (blue line). I was sure we were headed down and that the trend would end. After the buyers and sellers painted a doji (second green arrow) just above the 50, I started getting uneasy. Should I get in!? Can the buyers push this thing higher!?

My indecision cost me a lot of money as price bounced between the averages and then rocketed upward through the 20 (green line). After that, there wasn't a safe place to get in and we ended the day after a massive trend day up 7.21%.

Once again my bias has cost me a lot of money. I'll probably never learn.

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