Friday, October 12, 2007

My Decision/Reaction Time Failures

I am getting very frustrated with my inability to capture moves that seem so obvious to me.

I make the correct analysis, but when I start to look at the prices the entry stymies me.

I am suffering from the forest vs. trees syndrome. While I try to parse the minutiae of the "perfect" entry price the market moves, then I am forced to chase and then next thing I know the move has been made and I missed it.

This has happened at least 4 occasions this week.

Today was a perfect example:
1. Nasdaq sold off huge yesterday, raising a very good possibility of bounce
2. Oracle bid for BEAS makes this even a higher probablity
3. Strategy: Buy QLD and get the leveraged boost on a QQQQ move.
4. See resistance points at $115, $116, $117
5. QLD moves quickly to $115, rests, then moves to $116
6. Failure to act cost me at least $1,165 in profits had I held till $116 and bought at 9:30am or so

BOTTOM LINE:
If I am going to be a successful intra-day trader I will need to react faster and with conviction. I need to keep the "big picture" in mind and not get caught in the trees. I should not try for "perfection" on my entry, just get in/out and watch it like a hawk if it moves against me.

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