Saturday, August 27, 2005

Being right; MSPD

In the first post of this blog I told you it's not about making or losing money, it's about begin right or wrong. Let's look a little bit further into this principal;

Let's look at MSPD; Like I told here I thought it had lost its momentum and I got out with a profit while I still could. If it is all about making money in the stock market, I would be right no matter what happens the next day; after all, I did made a profit didn't I?.
But what about the other very important lesson Jesse Livermore learned us; cut your losses and let your profits run. If MSPD would have gone further up yesterday, I just would have been wrong. It wouldn't matter that I made a profit, cause I had to let it run! Don't eat like a bird and shit like an elephant.

But it turned out that I actually was right on MSPD. It opened right at the 200MA and went down with quite some volume. The fact that it went down on high volume is a bad sign and I won't get back in this one any time soon. MSPD even still has got a gap to close. The gap is still far off, but MSPD might try to close that one.


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