This morning while surfing through Briefing.com I found out the ''blank'' warned investors that it will slip into red in the first quarter of the next fiscal year and fall well short of expectations for the balance of the year. I checked the pre-markets quotes and ''blank''was dropping around $4, and the NYOB was showing huge sale orders all around the $67 level and below. So what I did was to short pre-market against an ECN at $67 expecting the stock to drop more due to the size of the sellers.
To lose in a trade is OK, is not the end of the world, but what I can't forgive is that I entered the trade following a bad reason. I was trying to sell following the frightened herd that wanted to get rid of the stock at any cost. When this panic situations arisen who buys the stock? the Specialist followed by the smart people. If the Specialist decided to take all these sellers at $67 is because he was sure that he was going to be able to sell this position at a higher price.
My mistake was to play on the same side of the frightened ones, of the irrational, of the dummies, and I got slaughtered which was well deserved.
You see, Forums make us feel all warm and fuzzy, but in reality Forums are for suckers. They're filled with Predators who'll take your money after making sure you feel bad.
Don't confuse Daytrader Forums with Daytrader Chatrooms: In Chatrooms you are usually given Stocks to trade and possibly entrance and exit points, while in Forums everybody tries to scream the loudest to try to pedde their stuff.
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