Despite the celebration you see in the media on a day like this, many traders find the action to be quite frustrating. It is great if you are already heavily long, as you can book in some very nice gains. However, it is extremely difficult to make new buys into this sort of action. Most everything is a chase now, and you really have to have some strong bullish convictions to believe we can continue to run straight up given the technical conditions, such as low volume and options volatility.
I had some technical issues this morning that have upset my rhythm, and I'm also bothered by how adhering to discipline by selling down positions in things like Renesola Limited
(SOL)
before earnings has caused me to miss out on big gains.
So, I'm a bit frustrated today, and that means I have to be careful with my trading and not force things. The market always eventually offers good opportunities again. You just have to be mentally and emotionally ready and not have any @^%&#& computer problems.
At the time of publication, DePorre was long Renesola Limited, although positions can change at any time.
James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com, an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.
