We had a nice gap up in hpq this morning and the stock is now trading at 48.30 up .47
The rsi(2) is now at 66 so in all probability we should be out just prior to the close.
I received the following email this morning:
“this HPQ relationship is giving me unwanted stress. time to dump!”
My response:
I can empathize with you since there was a time i used to operate the same way. But it sounds like your original position was too high. We only have had at the worst of the trade a 8% loss. So if you put on the trade at 50,000 your loss was 4,000. A good rule of thumb is if a 20% loss is going to cause you any financial concern or undo stress you are at too high a trading level.
Next if you let your emotions guide you as to when to exit a trade then you shouldn’t be trading. Invariably you will be getting out at the wrong time. Unless your a seasoned professional human nature is going sabotage your success at every step of the way when you gamble. Thats how seasoned professionals make money….Taking advantage of human nature.
RickJ
