I was stopped out of my second sugar trade, though I have still made around 2.8% from the first trade. Perhaps I should have waited: to quote myself from yesterday’s blog post, “A sudden fall like this is a risky thing, because technically it should presage a further fall.”
Adding to winning trades is something that I am still practising, so I am not too concerned. Sugar has broken its strong up trend this morning and bounced on a support level at 720. Brace yourselves for a few days of worry as the trend corrects.
I am toying with the idea of cutting the whole position, but I don’t think this is a significant enough move yet. I have already tightened the stop to ensure some profit from this trade.
It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight! Edwin Lefèvre, Reminiscences of a Stock Operator