To quote inexplicably popular stock maven Jim Cramer, Don't Be Silly. Allow me to explain…….
This morning I saw the market move sharply higher. I still had 27 short positions. I started closing them out willy-nilly, not even looking at the charts. My rational for this, if you can call it that, was:
- They already had good profits
- I didn't want to hold shorts during a big upswing
Well, that was just dumb. As we know from the Three Rules, one should never do an ad hoc close. And I was ad-hoc'ing all over the place. Stupid.
So. Be like Jim. Don't be silly.
