Trading Journal Entry 5/31/2011- You Have To Be Hungry To Become Better

Watching StockTwits TV’s “Charts Gone Wild w/ John Lee” can’t emphasize enough two new mistakes I made. First, John Lee critically points out that many traders are wishfully perceiving some top of the market that we “think we know” but we don’t. I have good reasons though for not using a protective stop to lock in at least half of my profits on $CORN: 1) not enough profit yet and 2) my trading account is lock so I won’t be able to buy back in. We’ll see how $CORN turns up tomorrow; the market is optimistic.

The second mistake (that I got lucky out of) took place last week. The first day that silver advanced beyond $35, many junior silver miners did not follow. With other assets misbehaving that day adding to the frustration, I pulled the trigger on four junior miners. And started indexing with $GDXJ, a gold junior. Those four juniors have so far produced mixed results and $GDXJ has consistently produced good results. So it turned out pretty good and I’m more diverse w/ uncorrelated returns.

Bottom line: 1) stay away from the mouse when you’re not in the proper mental trading mood, nutrition, and rest 2) use protective stops for half of the profits because we think we do know but we really don’t know the top

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