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Wednesday, November 29, 2006

Frozen Fingers Syndrome

I think I'm suffering from the frozen fingers syndrome. I was not able to pull the trigger on initiate any trades last night. Even though I have prepared well in advance during the day. I identified a few stocks which I think will have good potential for the move up if they should rebound from the Mon sell-off. Among them on the list are GS, MA, RIMM, CAL, NVDA, etc. These are stocks which had a massive slide on Monday and are located at some support level and if this support level can hold, they have high probability for good rebound. I have also drawn the relevant support and resistance levels on these charts.

But come around 10.00-10.15am ET when the market improved and these stocks on my watchlist started to rebound off their support level, there I was watching these stocks, but yet not able to do anything about it. I think I somehow lack the confidence to execute such fade the gaps or rebound trades. I don't know why. Maybe it's because I don't trade such setup often and hence the lack of confidence resulting in "frozen fingers". It sure sucks when you watch the stocks fly a few points without you.

So instead of letting this episode repeat itself and going through the agony again, I'm taking Trader Mike's advise to get started reading Mastering the Trade by John Carter soon...not soon, but NOW. Actually I've got my hand on this book a few days back. I'm should also spend some time studying how some master traders in the blogosphere execute such setup.


Blogger Phileo said...

Hi SimplyOptions,

I can relate to your problem - I've experienced the same thing on a couple of occasions myself.
There's one or two different things I'm going to try out to address that problem. However, it's also led me to wonder lately if it might be better to try daytrading options instead of swing trading them.

12:15 PM  
Blogger Simply Options Trader said...

Hi Phileo,
Thanks for your feedback. I hope to overcome this real soon!

Btw, I'll be interested to know how you address this problem. Let me know after you have try them out.

1:54 PM  
Blogger Michael said...

"Trading in the ZOne" by Mark Douglas is also a great help with "pulling the trigger" issues.

11:15 PM  
Anonymous Benjamin Boyle said...

Hey! I think you hit something we can all relate to :-)

Did you know that before market opened on Tuesday I was preparing a list of stocks that could be traded to the upside if the market rebounded?

LOL, but I didn't trade either. Why? Because it's not my usual trading style, and it was making me feel a little hot around the collar. So I just watched it happened, glad that I don't feel as though I have to be in the market all the time and getting every opportunity.

By the way, did you see how BSC and GS have dropped back down today (wednesday) despite the broader market's overall strength?

Cheers / ben

2:13 AM  
Blogger Simply Options Trader said...

Mike: Thanks for the recommendation. That will be next on my list of reading

12:17 PM  
Blogger Simply Options Trader said...

Hi Ben,
LOL, we were in the same boat on Tue! Agree we can't catch opportunities all the times. I take this experience (not the 1st time though!) as a lesson for me to put some effort into brushing up my skill in such fade the gap plays so that I won't have the excuse of lack of confidence the next time I see such setup.

Yup, despite the overall market gains, some sectors like financials, and tech (see AAPL, SNDK etc) didn't really participate in the upside move

12:20 PM  

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