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AKAM close out

Yesterday was touch and go as until the last hour the stock was poised to close within the channel. However, even had it not closed in the channel I had already found myself starting to look for ways to stay in the trade past my trading rule threshold of no more than a 1% of trading capital loss, rather than just admit my planned exit strategy was at hand and exit the trade. Below are just some of the ludicrous ways which I tried to justify my actions. Trading rules are new to me, I never had them in the past and probably because I don't generally like rules. But since this is my capital at hand I understand their importance and happy that I did exit the trade within my rules. Had I not done so I would just be setting bad precedent for the future.

  • Redrew lines to be more liberal to give myself some wiggle room
  • Justified that only the intra-day move was outside the channel but the closing was not. The problem with this is my channel was drawn with intra-day lines, thus I was trying to redraw lines.
  • Yes it's broken the channel, but let's see if the 50DMA will hold as support!! (where did this come from? I made this up on the fly)
  • Well I've got a SPY put hedge on that will make up for most of these losses
  • We're bound to get a short cover bounce and I can close out then at a lower cost
  • Yes my trading rule says to exit, but I'm not quite at the 1% maximum allowed loss so doesn't this allow me to stay a few more days and hope for a miracle?


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