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Friday, May 19, 2006

The Dow was up 15 points on very heavy expiration volume. Advance/declines were positive. I got killed with the calls I bought. I sold them exactly at the wrong time and lost over 80%. If I would have held on to them longer during the day I could have perhaps made 30% to 40%. But I would have had to get out quick. It's hard to believe that there was no good bounce today as I had expected. But the market will do what it does. The market is always right. I guess I should have listened to the summation index. There is nobody to blame but myself. I am having my worst month ever perhaps. The last 3 trades have been losers and 2 of them were substantial. I will have to scale back. I need to rebuild my confidence. This is a good time to re-examine just what the hell I'm doing. The short term timeframe trades just don't work out for me. I need to stop doing them. I also need to step back and check out my risk parameters because I have had some big losers. Getting back to the market, it is very oversold. I am getting buy signals short and longer term. However the lack of positive movement when there should be has me worried also. The tone has changed. I'll need to be on the sidelines. Gold was down over $25 today and the XAU has broken long term support. Getting short the gold issues was the play for May and I blew it. I had a chance there and didn't take it. It's frustrating. Sometimes things just don't work out for whatever reason. This is one of those times. I'm going to have to go over everything and sort things out if I'm going to turn this around. I'm vacationing in July and perhaps there will be no trades until after I get back. Mentally I'm feeling the pain of not performing up to expectations. It isn't easy. There are lessons to be learned that should be a part of the plan already. My trading leaves much to be desired. Hopefully some good will come out of this and I can go on to better things. But right now it feels like shit...

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