Close short position for QQQQ
After my 2nd short of QQQQ, it went up again. So I decided to short another 300 shares.
During that period of time, QQQQ gave out dividends. Although the dividend amount is not big, but that is additional cost I have to consider.
After 1.5 to 2 months since my first short of QQQQ, it went down below 50. I covered all my 600 shares eventually.
Lessons learned from this transaction:
- Setup goals before trading. What happens if it goes up? What happens if it goes down? For this case, if it goes up, I will short more. If it goes down, then I cover my shares.
- Patience. After the goal is set, execute the plan accordingly. And if nothing happens, be patient and wait. It is not easy sometime as I see the price went up. Remain patient and keep confident in myself really helps.
- Once you set the target price, do not change it often. That target price is set when you decide to enter the transaction. If the target price changes often, then it means no concrete plan exists beforehand.
As one of reading said, if you open the newspaper, everything you read is bad news. Credit crunch, high oil price, softening housing market, etc. Everyone is aware of the bad situation. But that normally means it is the exact time to buy into stocks. So QQQQ is just a start in this direction. :-)
Let's wait and see.
posted by youli98 @ 1:08 AM
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