Average down mistake again on Mar 23 Thursday

On Mar 23, 2006 (Thursday), the market looks doomy. Both DOW and NAZ dropped at the beginning. I thought it could be safe to play with my "SHORT" candidates.

I had -400 JRCC at hand which lost around $240. (At this time, the cost was -$31.9) Seeing dropping DIA and QQQQ, I short 200 JRCC again at $33.00 at 9:49AM before I left home. In the mean time, I take profit of BIDU at 52.00(GOOG TRADE) and I short GOOG at $345 (EXCELLENT TRADE), then I left for office.

When I got office I found DIA and QQQQ were still in red, and GOOG dropped to $341. I bought WEN at 63.68. I was very delighted with my insight on GOOG. And continue short 800 shares of JRCC at 33.00 to 33.02 level. (What I want to do? My intrincit feeling drive me to take RED DIA-QQQQ chance to short JRCC again to average down cost!!!!)

Then I saw GOOG bouncing around 341. I need to take profit from it. So I cover my 100 GOOG short position at 340.88 at 11:20AM, what a correct decision! I have made many wise decision on GOOG recently!!!

Before lunch at around 12:20PM, JRCC began to rise passing 33.08 towards 33.15. Both DOW and NAZ were in deep RED. I did not realize the risk. (I should check why this one rise against the dropping market! I learned in the evening that all COAL companies were GOOD GREEN when DOW-NAZ were DEEP RED!!!!

After lunch from 13:22 to 14:49, the JRCC kept rising, I short JRCC again from $33.20 to $33.88. Now I have 3600 shares of JRCC, amazing, isn't it? It is a sense of GAMBLING!!!! Why average down again????? Smoking shit!

It is 15:00 and there is no sign of dropping JRCC. I have to clean up my positions by selling no-big-loss positions like DSPG, SRR, INTC. I also clean the winning position like HUBG and small-win positions like HTLD, GCT, BCSB.
It is a pratical (GOOD) strategy to save some tempararily lossing position. It did postpone cover the position in the high price. In order to save itself, I gradually sold 900 JRCC from 33.75 to 33.58.

Unexpectly, the JRCC did drop a lot from 15:30 to 16:00PM, it even hits 100 shares of my 33.10 cover-buy position at 15:50PM. I took a big relax then. Because the balance of my account almost back to normal 49900. I wasted a good chance to save all my trapped JRCC positions! The after hour trade push JRCC back to 33.20. This is a position which I just lost $500.

In the evening, I was temparily released that I even wrote this story in DaQian to relax one nervous heart on trapped GOOG SHORT!

In the evening, I didn't write trading diary. I did some research on what happened to this negative loss stock. It is in COAL business and all the COAL business stocks were big GREEN today!!! While DOW/NAZ were big RED.

I didn't figure out why COAL behave so well in DEEL RED DOW/QQQQ. With the coming GOOG joins SP500 news and Tim Hortons' IPO, I paid attention to these 2 big players.