Tuesday, May 3, 2011

Silver away

The gloat: Sold my core position and the rest of my swings in SLV today. I bought a full position in it for $18.50 back in August, sold chunks along the way, and held on to 1/4 of the position as my core holding. I sold it today at $41.94, a return of 126% on that portion!

The important part: This was a very hard decision, but I was suddenly watching SLV too much, and I realized that if it gave up more in price, that the mental harm of that would be greater to my trading psyche than selling and watching it go to new highs (which may well happen). It was just hurting too much watching it retrace, I was losing my cool, and that is a bad sign.

I am still a newer trader, and I am building my capital, so better to be conservative, take my gains, and build from there, not suffer a big draw down in hopes that it goes parabolic again. I wish I had bought more, but again, the size I took was inline with my risk tolerance, and as as my capital grows, I will be able to take larger positions.

The chart says its done even if my gut, and my hopes, say it has more to go. If it does, I will trade it again. I made a great trade, time to move on, and if I trade it again, I can start fresh. I had converted some of my SLV swing (entry about 2 months ago) to DGP, and will hold that for now in case PM's decide to put another leg in. SLV sure looks done on the daily, but there is a lot of emotion here in metals, so I anticipate making more trades, but they will likely be swing trades at the longest, and more likely scalps and daytrades. There is still much opportunity here, I will be watching and trading. Heck, if it keeps backing off even more today I must just have to buy back in ;)

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