Sorry, I'm behind on blogging... So as you know I bought a puny amount of FAS at $12.55. It's probably a good thing my mistake happened, since FAS has since plummeted.
When I realized my mistake, I removed my stop, because I didn't want to pay commissions on such a small trade... I didn't really care what happened with it.
Then yesterday with the markets way down in the morning, I bought a proper amount of FAS at $10.01. I set a stop at $8.50 (for a max 15% loss). I thought this was a steal of a deal and was expecting a rally since it was Obama's inaugaration day. But FAS easily hit my stop and plummeted to $7.60, and incredible 40% drop from the previous day's close! It's still hard to believe these 3x ETFs... 40% in one day -- amazing.
Anyway, so I'm feeling pretty crappy about that trade, but still felt there's got to be a rebound here with such large drops. So today, with the markets up, I waited for the first sign of a rally in the afternoon, and I bought in again, getting in around $8.50 -- basically where I previously exited. It was a pretty bad price since it was much lower earlier in the day. But the rally was strong to the close, and FAS finished at 9.90.
It's nice it finished so strong, so that now I can put a stop just above my entry point and not lose any more.
Man, I think it's a little too stressful to trade FAS/FAZ -- you practically need to be a day trader.
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So did you get stopped out today (01-22)?
Yep. Well actually, since I was going to set my stop this morning, and it was already below 8.50 when I got into work in the morning, so I just sold. It's just too crazy, so I'm out. It'll be fun to trade it when I'm a day trader some day :)
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