I know I will receive alot of questions asking why I didn’t stick with my short positions longer. While I do feel like the market has more room to the downside, I don’t trust pre-holiday trading for sustained moves. Therefore, I feel it’s best to take my profits with shorter term trades and look for the next opportunity.
I covered 500 LEH (short at $58.85) when it hit my target at $55 for a $1925 gain (7.1%).
I covered 100 GRMN (short at 102.65) at $97.80 for a $485 gain (+4.8%).
I sold 500 SDS, which is a leveraged short S&P 500 ETF (entry at $54.75), at $56.79 for a $1020 gain (+3.8%).
I am still holding GMCR, LFC and SDS.
I am currently in the midst of one of my best trading runs. Since August 6th, I have made 16 winning trades with only one loser, with $20,861 in total profits. Note that two of the three positions that I am still holding would count as losses if I exited today. I will continue to hold until my stops are hit.
This certainly was not a bad month for an account under $100,000 (I use margin when needed). However, this weekend I will analyze all of my trades, and watchlists, to see what I could have done better. I am still a little ticked about missing the BCSI and CROX moves, two stocks at the top of my primary watchlist.