Friday, June 12, 2009

Trading - Maybulk

Hm.. hindsight is always 20/20, should have, could have, would have.

MAYBULK trades
In: 15 Jan 2009; $2.60; BDI (Baltic Dry Index) surging since Dec 30th 2008, from 600+ to 900+
Out: 27th Feb 2009: $2.84; to swap for PBBANK, a "blue-er" counter and I've making 8%+ net in less than 2 months, thus getting out before Trailing Stop Loss of 7% is hit
Net: 8.18% in 1.5 months

In: 7th May 2009; $3.18; BDI has been going up several days at 100+ per day
Out: 9th Jun 2009; $3.24; BDI dropped 3 straight days over 200+ per day thus getting out before Trailing Stop Loss of 7% is hit
Net: 0.69% in 1 month-ish

Today: 12th Jun 2009
BDI stopped falling, Maybulk is trading between $3.26 to $3.30

Bottom line: I should have followed my trading plan of 7% Trailing Stop Loss exit OR 21% Net Profit (why entered, why exit, when exit).
The above trades, although making me money, is not worth the risk to rewards ratio that I've planned when getting in. In addition, the trading cost also escalated. Hm.. based on my trading and investing tracking - I seem to have no problems following the planned execution for investments, I've only been short-circuiting my trades. Too much fear, not enough greed OR just too much second-guessing myself? Any advise from traders out there? Perhaps a more slothful approach like what I'm doing with my investing approach rather than a jacked-up caffeine demon trading style :D

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