Phew. That was close! Let me explain.
I had a short position in ORCL. As I always do, I have an updated stop on it (as my rules demand) Just a few minutes before the regular session close, I got stopped out of my position. I was kind of peeved, but a stop is a stop. I was out.
Oracle rolled out their earnings report, and at first the stock began plunging, and I began to shake my fist at the trading gods (and at myself) for having such a tight stop-loss. Then, just as suddenly, the stock stabilized and began blasting higher. This sucker had about a $70 (!!!!!) reversal within moments, and I quickly tucked my waving-fist back into my pocket.
You see, were it not for that stop-loss, I would be facing an outcome which would have been – – let me check my notes – – ah, yes here it is………….very bad. As it is now, I took a very tiny loss and am watching a safe distance from the blast zone.
If you just “wing it” in the markets, Larry Ellison’s latest girlfriend will throw you the stink eye, and nobody wants that.
