The importance of keeping your cool...

So this morning I was really biased to the long side on DFS after reporting a spectacular quarter beating on EPS by more than a point and on Rev's. I dabbled with this in the pre-market as it pulled back. I was long from and average price of 15.42 at the open and was stuck on holding. Had a target of the highs from the pre-market of 16.30. When this stock could not get above 15.50 I should had gotten out, after trading against me a bit this thing gave me a chance to get out before stopping me out at a ridiculous price below 15. Although this stock did eventually make it to test and break the highs of the pre-market I was in at the wrong prices. Price can turn a great trade idea into a horrible trade. So anyways after taking a .43 loss per share on that one I was close to being stopped out for the day. At first I was pissed off and was about to trade on tilt...worst possible thing to do. The market was just teaching me a lesson.

So instead I sat back in my chair for a few minutes, acknowledged that my ego got in the way of exiting the trade but it was only one trade. I also decided that it was only 10 minutes into the open and there was still plenty of time to grind my way positive. So that is exactly what I did, I got in the zone and traded my way out one trade at a time out of the negative to finish positive for the day.

It just goes to show you that you need to remember that the trading day is not over until 1:00. You always have time to make good trades. The key is to remember that you do not have to make it all back in one trade. Don't swing for the fences, just hit a bunch of singles and grind your way positive.