tradersams blog

BTR:  I opened a short position in Blackthorn Resources on friday at $1,11 using a CFDs.  The trade came from System B.   The share has broken lower from an equilateral triangle.  Favourable factors for this trade – dominant downward pressure on the market at present, System B flagged the trade.  Against the trade – well I can’t see much a volume confirmation.  As noted before I don’t usually get too fussed about volume, so maybe I am jumping at shadows.   Lets see how the position plays out.

SXY:  I closed my position in Senex Energy today on System B at $0.84 for an overall 15% loss.  (This is a blend of the initial and pyramid positions).  Not a good trade at all.

This trade is a great example of ‘doubling down’ on a losing trade.  Enough of the trading books I have read say not to do this – and there’s a reason:  It’s a BAD idea.   Writing this is my attempt to program this into my brain… I haven’t done it in a while, and its to be avoided.

Only pyramid into winning trades!