GOOG Update

Yesterday's call position lost about 1% of portfolio, even though it was over a 50+% position loss, by keeping your losers small, you can take multiple stabs at a position until you get the correct positioning, this is one of the biggest differences I've seen between professional traders who make a living and not flame out and retail traders, pros keep their losses small and if there's something they like about a position they aren't afraid to take multiple stabs at the trade, they can afford to because they keep losses small and let winners run. Retail traders tend to take 1 stab at a position, take WAY too big of a loss because risk management is the last thing on their mind rather than the first and they walk away from a good trade after 1 loss. That's like accepting a strike out in baseball after only 1 strike, you have at least 2 more at bats, why would you walk away after the first strike and accept an out?

I don't advocate taking multiple stabs at a position if you don't have a reason, but if you do, then it's a different story. Risk management is what allows you to stay in the game until you hit that home run.

Any way, here's the GOOG update, yesterday I got out of GOOG and the more I thought about it and looked at the charts, the less I liked my decision, but options have a different set of rules than a long equity position, there's time decay, expiration, the premium, etc.

 The 1 min chart, this is 1 reason I lo back at the exit and regret it, the decision was more emotional based than fact based.

 The 2 min chart makes looking back at that decision even worse.

 And the 5 min chart looks like GOOG can still make that pop higher, but remember the real trade here is looking for higher prices in GOOG to fill out a April Put position. Here's the reasoning behind that trade idea.

 10 min chart is leading negative

60 min chart is leading negative. This is the bigger picture, the charts taken together suggest a short term bounce which should be used to sell/short in to price strength, the call is a short term position to try to ride that bounce, the longer term put is to try to ride the move down that the larger distribution on the charts suggests, but we'll definitely look at the charts again on any strength and make sure they look worse, meaning there was stronger distribution in to any price strength.