GS 7/3 ( AAR)

So today turns out to be a really bad day to trade. Session ended early at 1am. Might as well...

Was having a breather with D and talking about my trade when he told me that several times during the session, he had wanted to buy a put after I exited from my trade. I asked him for his basis for wanting to enter.

To which he replied,"coz you said it's a down day. And you went and bought a call. hahaha..."

**&%#(*#$*&%%##!

Ok, I did tell him that. I have this habit of telling him just prior to market open, after he knocks off from work, how I think GS is going to move for the day. Most time, I tell him whether it's going to be a bearish or bullish candle on the daily chart, what the range is and how long the body is going to be. For today, I told him GS' going down.

But of course GS gapped up from its close of 178.79 yesterday and opened at 181.95 today.

D stared at his screen and gasped,"GS's going up!".

I was looking at something else on my screen (probably reading my mails, surfing some unrelated sites, etc)."It will come down" I commented casually.

I usually ignore the first half hour of the action coz GS behaves erratically at the start of the session frequent enough for me to not want to waste my time and energy staring at the screen.

When asked how much it will go down, I told him about my green channel and said it should stay within.

So when GS was around $181.2 (shortly after I close my losing position),where price was not too far down from the day's high, D was tempted to buy puts - he figured the only way it's going from there is DOWN. Coz I said so, according to him at "confession time" (see, I always ask D for reasons he wants to enter a trade, just to ensure that he actually has a strategy, and not just using his "gut feel").

And so after market closed at 1am, when we were having a smoke outside our home (the common walkway with a scenic view 27 storeys below shared by us and our only neighbour), D started counting the number of winning trades he would have made had I not stopped him from executing them. I was amused and teased him about his "gambling" style of trading.

He quickly countered that I was worse, and that in future, I should print out what I wrote on my blog and have my "prediction" highlighted so I'll not trade against it.

He got me :-)