The most fervent hope I have for myself as a trader is to one day be as good a bull as I am a bear. On a scale of 1 to 10, I'd give myself an 8 as a bear (I shave off 2 points for getting out too soon), but a 3 as a bull (and I'm probably being terribly generous).
One challenge I have is expressed in the chart below; here is STP, which I own……..
This stock is up 100% from where I bought it. Now, for a short, that is the theoretical limit, but a long could obviously go up more than 100%. The challenge for me is that, as a person reliant on stops, the stop on a chart like this is so far away it would constitute most of the profits. And second, my bearish tendencies let me see things go down easier than up. I guess in the case of STP, I could probably convince myself to hold as high as 30, where serious resistance exists.
