Chase the Gap or Wait for the VWAP?
There are two forms of risk in the market; price and time. Why let the stock pullback and hope the buyers will re-emerge? Why wait for the buyers to show up? Instead, the better bet is to wait for evidence the buyers have retaken control.
An Expensive Lesson
I knew I would never be able to sleep that night with such a big loser so I sold all but 1000 shares, just in case it gapped higher in the morning. The next day, tired from a sleepless night of obsessing about how stupid I was, I sold the remaining shares in disgust as the stock gapped down another dollar.
How my first triathlon relates to stock trading
Being a trader, I tend to see a lot of similarities between many of life’s events and my market experiences. Training for and competing in this triathlon is no different.