Today was my worst trading day of the year. The amount of money I lost was small, but the damage to my ego was huge.
Under the assumption the S&P would fail to breach its 50DMA, I got stopped out of three asinine trades on the short side. After three strikes, and seeing SPY march higher I figured if you can’t beat them, join them, so I got long. With my portfolio generically long in both SPY and IWM, I started looking around for individual stocks to play.
My eyes immediately drifted to Apple’s chart, which is always fixated on one of my screens. I previously sold AAPL near its highs before the DOJ lawsuit was announced and now it was over $10 less than my last sale. The lawsuit is complete bullshit, DOJ is claiming consumers were scammed out of $100M, even if they’re guilty, AAPL has lost billions in market cap since the announcement.
The shares were trading relatively weak compared to the NASDAQ 100 and I thought it was going to play catch up. When it started ticking up, I started buying, confident it would be in the mid 630’s by the close I made three consectutive purchases at higher prices. Then the shorts stepped in and ruined my party, watching it fade as the market stampeded higher was painful, and my trades were fucking regretful. I made a final purchase near the day’s low to average down my trade price.
I also bought some CMG and M (no regrets there)
I think this rally has room to run, the market will probably make another high. Tomorrow I plan on using the SPY and IWM money to buy some individual names.
Ultimately AAPL will trade higher, and I will be victorious.
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We must protect our emotional capital. Thanks for putting this reminder piece out.
Update: I sold AAPL at 617 this morning. Waiting for support around 601-600 to step in again