I just got this in one of the few stockmarket related emails I bother with. The author emphasizes risk and money management as supreme, which sits well with me, but I am utterly flabbergasted by the utter lack of insight this author has into his own trading.
"Even trading is difficult. Here is an example. During our ******** workshop, I found a perfect stock for shorting. It was down and highly efficient both on a daily basis and an hourly basis. I shorted it with a stop of 10%. It went down the day I shorted it, but then in after hours trading went above my stop. And it opened above my stop. I assumed it would fill the gap, so I elected not to exit. It started to move down, so I just watched it (but remember I was teaching a workshop). During the last two hours of the workshop I was preoccupied, only to find out the DOW had moved up another 400 points for the largest daily point gain ever. The next day the market in the stock I was trading gapped up another 12%. That was it, I again felt the gap would be closed, but I didn’t want to compound my mistake. I just entered a market order to get out at the open at about a 3R loss. It took me 25 minutes to get my fill back and I was trading with a firm that guarantees a 2 second fill or it is commission free. By the time I got my fill back, the stock was already down on the day. I was filled at close to the high of the day at about $112. Three days later the stock closed at $66. Bottom line, even short term trading in this market is terrible. Most of my 3R loss occurred outside of regular trading hours."