I Made a Stupid Bernanke-Inspired Trade: Exit?

1:41pm: Buy 200 shares WFC @ $41.10 on 99% margin.

Currently down $87.98 + $0.90 interest.

I normally stay away from margin. I was having a good day and got cocky. Today wiped out a week's worth of profits for me. Note: I swing trade with some day trades thrown in.

What would you suggest I do now? My other positions aren't on margin, so I'm comfortable holding them.

But I have no clue how long it will take me to break even after Bernanke's news. And every day, I'll be paying 90 cents interest.

I was going to see how it opens and if it starts moving down at all, I'm gonna sell and take the loss and a lesson.

Here's the chart:
http://tinypic.com/r/juek4z/5

9 Comments
 

just liquidate all that crap, buy equity index funds, rebalance every year and check how much you have when it's time to retire.

 
poonslayer

just liquidate all that crap, buy equity index funds, rebalance every year and check how much you have when it's time to retire.

I really like trading. And I make more in a typical two week period than an index would give me in a moderate year.

 
Little Engine Would poonslayer:

just liquidate all that crap, buy equity index funds, rebalance every year and check how much you have when it's time to retire.

I really like trading. And I make more in a typical two week period than an index would give me in a moderate year.

What about a whole year? I think anyone can beat the index over a 2 week period with some luck. I think its harder to do for a whole year.

 
Ihavenoclue Little Engine Would: poonslayer:

just liquidate all that crap, buy equity index funds, rebalance every year and check how much you have when it's time to retire.

I really like trading. And I make more in a typical two week period than an index would give me in a moderate year.

What about a whole year? I think anyone can beat the index over a 2 week period with some luck. I think its harder to do for a whole year.

I never said I've been trading for only two weeks. I've been paper trading for about 2.5 years and trading my own money for about a month.

 
Little Engine Would

What would you suggest I do now? My other positions aren't on margin, so I'm comfortable holding them.

I was going to see how it opens and if it starts moving down at all, I'm gonna sell and take the loss and a lesson.

Here's the chart:
http://tinypic.com/r/juek4z/5

You answered your own question. IMO just take the loss and learn a valuable lesson about knowing exactly when you plan to enter/exit a trade BEFORE taking it. Don't try anything crazy to make it all back, you don't want to be like a gambler who doubles down everytime he loses.

And, why would you guys throw monkey shit at him???

 
Best Response
FatIdiotKid Little Engine Would:

What would you suggest I do now? My other positions aren't on margin, so I'm comfortable holding them.

I was going to see how it opens and if it starts moving down at all, I'm gonna sell and take the loss and a lesson.

Here's the chart:
http://tinypic.com/r/juek4z/5

You answered your own question. IMO just take the loss and learn a valuable lesson about knowing exactly when you plan to enter/exit a trade BEFORE taking it. Don't try anything crazy to make it all back, you don't want to be like a gambler who doubles down everytime he loses.

And, why would you guys throw monkey shit at him???

Yep, I should have placed the sell order overnight because it dropped like a brick at open. I sold and took a loss. Made half of it back going long SCO on the same leverage.

Learned a few good lessons and I'm not using margin again until I'm a lot more comfortable with what I'm doing.

 

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