Doubling Down: Doing The Dirty

Everyone has a different style of trading.  These methods are forged by our own mental aptitudes and the experiences we accumulate in the marketplace.  Most of the time I want to own momentum stocks not because they are momentum stocks, but because they are the companies who have operations that actually interest me.  The challenge is managing the type of price action you can expect from the likes of Twitter or Facebook or Cree.

How about Chinese websites?  It seems like a good idea to have a few of the most popular sites from ASIA around, but good luck stomaching the daily movements.  This compelling story stock is a wild beast and riding it requires patience and strategy.

I put tons of time and research and machine hours into taking better market entries—entries which skew statistics in my favor.  That does not rule out order flow going against my entry.  One type of trade I take is to enter an oversold stock I like with a partial long.  Sometimes I take half positions, other times a third.  But I do so with a plan.  Therefore, I will lay out my plan, in the naked, for how I intend to play SINA, a stock as violent as they come.  Behold:

DAILY CHART:

WEEKLY CHART:

The best trades take time and often fly in the face of recent market activity.  The above road map is how I will catch a momentum rabbit by its tail.  I’ll be keeping tabs on this one more gregariously than my recent trades.  More quality, less quantity positions, yes yes?

I never made my point, the point this post title alludes to.  If you are going to double down on a position, or average in, you better have a plan and stick to it when you are in the heat.  Hell that’s life in a nutshell so get out there and execute.  Plan and execute, plan and execute.

 

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