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Economy

rdking647

(5,113 posts) Wed Jan 4, 2012, 07:38 PM Jan 2012

todays trades and what to do when a trade goes against you

I didnt make any trades today. i was away from home watching some bald eagles. came home and found out one of my trades had gone against me alot.
NFLX which I am short was up 111% today. now i have to ask myself what to do.

NFLX was up because an analyst commented that yahoo could potentially buy them. In a stock as volitile as NFLX that was all it took. So I reevaluate my thesis.
In my mind nothing has changed. the stock is still very overvalued. I thought it was expensive at 70,its even more expensive at 80.
I will remain short it and will possible short more. but its possible that the stock will keep goign up and reach my pain threshold. then I get out no matter what I think.

better to cut your losses and live to trade another day.
But NFLX isnt at that point yet.

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