Trades for 8th October,2012

Trade 1

Short GDOT                 This was picked from today's gap down list.
                           
                                     We shorted  GDOT based on our trading parameters.

                                     Entry      10.50
                                     Stop       10.60

                                     Target 1       10.35                    Covered 1/3  +.15
                                     Target 2       10.25                    Covered 1/3  +.25
                                     Target 3       10.00                     Never hit.
                                     Target 4        9.50                      Of course didn't hit.

                                     We we   stopped  out  1/3  at b/e.
           
                                      risk/Return       .10/.25          =250%

                                   Not   what we expected. But we gladly took it.

                                   Did we trade wrong. No.Trade was right. We followed our plan.
                                   Getting stopped out also is a part of the  trade.
                                   We got stopped .We respected the market's decision.Looked for a
                                   renetry. Couldn't find one. Walked away.

Trade 2

                            


                                   
 
                                   
                                                                  

 NLFX gapped up while the SPY was gapping down.Showing  strength.

 Looked for an entry  to go long. Only entry we found was with a stop to far away
 in our opinion  to be profitable in r/R compatible trade.Stop was .70 away. Too
much to risk ,we thought and walked away.(Entry was 72.00) NFLX hit 74.23 !

Do we worry  of a missed trade? NO. In our books r/R was not worth it.
And by the way, you are  going to miss many more trades.Move on.