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Tag Archives: $Z

Don’t Get Attached To Winners (or Losers)

One of the most damaging mistakes trader can make is becoming too attached to a position.  Maybe they’re fan boys, maybe they hate the person on the other end of the trade, or perhaps their research is so awesome they can’t accept the fact that it was noise.  Whatever the case may be, I think it’s paramount you take on a trading flexible trading style for supporting your thesis.  For me, flexibility comes from scaling out of positions.

Let’s take today’s winner for example.  I put a position on this morning in Zillow.  I wrote a piece a few days back explaining my thoughts on trading this name to the long side.  When the market confirmed my plan with buy flow this morning, I put my position on.  I’ve learned the best trades are hard to grab ahold of.  That was the case today.  I was stalking, and as soon as I saw what I liked I had to jam the order in fast.  The position worked right off the rip, and before lunchtime we are already at my first target.

At this point your mind starts messing with you.

I was expecting this move to take a bit longer than two hours to reach my target, obviously there is a strong demand for shares of $Z, so my mind says, “Aye, take your target and shove it in your cannoli hole.”  My internal dialogue is always in an Italian-Brooklyn tone.  This is me getting attached to a position.  You know what comes next?  A shameover © when the peak forms.

But I’ll be the first to tell you missing additional upside because you’re trigger happy can feel worse than a losing position.  That’s why for me, the best methodology is to scale profits along the way.  Everyone is different, but now I’ve already put bread on my table.  If I want to stick with the position, my cost basis is now lower. Plus when this stock screams higher, I’ll keep getting paid.

I think most successful traders scale, but you don’t hear many of them preaching it.  Define your levels, use the charts, and build and scale your position accordingly.  This will remove any attachment to a single price level, and will keep your mind clearer to make better decisions.

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Find Your Next Investment Using You iPhone

Even with a realtor, I still love the information I can access on the go using the Zillow app.  Their strong mobile platform and disruption of the real estate industry has kept my attention on the company since the IPO.  After trading to an all-time high last week, the stock has seen aggressive selling.

Should we see buyers step in and buy this dip, I really like how Zillow is setting up on the daily chart.  I’ve played along partially with this name, riding the January rip and earning some nice coin along the way.  However, it pumped one day and I ran out of bullets, taking my final scale.

Since then, I have kept the name on my radar, hoping to see a buyable dip form.  Thus far, the dip we are seeing in price is violent.  However, gap fills of this variety tend to behave violently.  Looking back at how price behaved around $38, we can see it was a tough resistance.  I’m looking for that level to morph into support.  Should price stabilize and turn higher, it will threaten to break the steep trend lower.  The steeper the trend, the more violent the break:


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Holy earnings blow out.  Look at our newest enterprises, wowing the street with hot numbers.  Zillow and Angie’s List are ripping afterhours, partially because there’s a housing resurgence, partially because they’re the way of the future, the future, way of the future, ehm. Future.  Howard Hughes (HHC) ripped all day.  That was my tribute to the aviation legend.

Fly pens posts like ‘The Amazing Market’ that get me so pumped to bank coin I have to sit in my car for 10 minutes listening to classical music so I don’t put my head through the windshield like Busta Rhymes the first time he heard Eminem.  Get excited people!  These rip-tastic days are numbered.  You need to, “get it while it’s here boy.”

Every time I upload a blog post I feel like I’m a member of the future society.  It’s never a burden.  Just as many Americans enjoy a fecal cruise, I enjoy typing a message to the world then permanently etching it into the archives of the greatest website on the internet.  Future.

ZNGA, Z, YELP, FB, TRIP, OPEN, ANGI, LNKD, take your pick.  One of them is going to double.  Stick to the charts and you can ride along without getting castrated by the inevitable loser.

If you can’t allocate risk capital into this space, you’re bound to miss out.  I’ve been beaten with a dough roller by YELP once.  I cut off my right pinky as a reminder to stay humble (kidding).  But know what type of beast you’re dealing with.  Know the range volatility and position accordingly. 

One can only lead a horse to water.  You best take a drink before Elizamae makes you his main course.

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