Let me start by saying that Amazon (AMZN) doesn’t fit my parameters so I don’t trade it. For the most part I don’t really keep track of it either, except on those days that it runs up like crazy and it is all over the headlines. It doesn’t pay a dividend and that is one of my rules. No dividend, no trade. That being said it is still hard to watch a stock run 15% plus today and not be a part of it. Amazon reported good numbers yesterday and was up big in after hours and up today on big volume. I had thought about taking a flyer on it yesterday before the close. I have a kindle touch and buy stuff from Amazon. And I had a “feeling” that it would do well yesterday with its numbers. If you don’t recall I am trying to get away, far away, from trading on feelings.
So, on the whole I am glad I didn’t chase those feelings yesterday with a buy of Amazon. As I watch it bounce up today I have been trying to remember that it is all about developing solid trading tactics, the kind that make me money year in and year out. Flyers won’t pay the bills consistently. It will be those skills that allow me to transition to full time trading. At least this is how I am rationalizing missing a 15% move in one day.
If you bought Amazon yesterday and caught that big wave today, congrats! Have you jumped out after the 15% + burst or are you holding out for more?
Here’s to trading guidelines, sticking to them, and keeping an eye on your Everyday Money.
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