If there's one thing that binds bulls and bears together, it's the mistake of closing out a position too soon in order to (a) take profits (b) avoid any chance of a smaller profit or, worse, a loss.
This is a beginner's mistake, and it's one that I make from time to time as well. Just yesterday I covered two profitable shorts – SPRD and GMCR – simply because they had nice profits and I thought the risk of them reversing was high (these are pretty volatile beasts). Well, here's what has happened today, and I've marked the approximate point-of-closure with an arrow.
So…..great picks, Tim, but sub-optimal closings, to say the least!
Don't do this.
