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The day started off bad again for SORL - a > $0.40 drop, and with the mixed market action and low volumes, I couldn't bring myself to sell. Why is this so hard to do?
ICXT was also due for a sale. I ended up waiting on this one as well, and picked up a tidy profit late morning.
So - off of the disciplined and mechanical strategy approach on these two trades, and I feel like I am just winging it. One ended up being a loss (though not realized) and the other a winner. In this type of a market not a big deal... but in conditions similar to the last two weeks of January, I am sure I would have regretted delaying the sales. I tell myelf that I am convinced of my strategy, yet my optimism is still clouding the execution.
Perhaps another factor is the overall drop in account value that has occurred over the last 4 weeks. I think I would have been quicker to sell at a $400 loss with the higher account value.
In some ways, I feel like I am working thru the same thought process that I was last January - and feeling the same feelings. But there are differences - for one, I have a definite stop loss (one day of ownership). I do not think the motivation has so much to do with 'I am sure I am right and I can't be wrong' as much as it has to do with a hopeful optimism. I held onto the stock after the steep decline with some confidence that it would go back up, but after bouncing off of the day's open, I hoped that it would continue to go up and realize a gain. What drives that? Not my analysis. Perhaps my bias?
I do not want to kill my optimism, I think it serves life (and opportunity if you subscribe to Dr. Brett's approach) well. But I want to be a successful trader, and I am fairly certain that optimism flying in the face of the analysis is not a good thing. Now to get over it.
This is one of the benefits of this blog. Tracking these kinds of thought processes and working them out. I wonder how useful this tool will end up being.
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