Monday, November 2, 2009

Shorted SPY w/out having a stop market and I paid for it

Shorted SPY at $104.45... when it rose up above $104.50 on its way to $104.60, it took off, just like I mentioned in my last post. However, because I didn't have a stop market order in place, I was not able to cover my short position until $104.92. That is a terrible trade. That is a rookie trade. A silly mistake that should never happen. Always have a stop market order in place to protect yourself. If you are trying to cover a position that is moving against you rapidly, it makes it difficult to make rational decisions in the process and you will almost always get filled at a price way above or below what you would have liked...

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