The ‘Perfection’ Mind-Trap
‘Once stopped out, the amateur will never re-enter the trade.’
That’s Dr. Alexander Elder, stating a typical psychological barrier for the new trader.
As if by design, as soon as the short trade LABD-23-10, was named, it was stopped out early this session.
About thirty minutes after the open, price action reversed its early session direction and re-confirmed the original bearish assessment of the sector.
Naming The Trade
From a personal standpoint, the psychological barrier of never getting back in a trade once stopped out, was addressed years ago.
It’s frustrating, but what’s worse, is watching one’s original premise turn into a ten-bagger and not being along for the ride.
With that said, the short in biotech has been re-established via LABD, at a far-from-perfect entry of 21.69, and a not-so good stop of 20.54 (not advice, not a recommendation)
We’ll name this one at the outset as LABD-23-11
Charts to follow.
Stay Tuned
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279
Pingback: ‘Free-Fall’, For Biotech … Closer « The Danger Point®
Pingback: Silver: Breakout or Test? « The Danger Point®
Pingback: Biotech … History Repeats « The Danger Point®