I lost my first blog post yesterday, I can't be bothered re-writing it. Here's a brief summary.
I got squeezed on three of my shorts yesterday (VRML, OPHC & VRNG) . All three positions were working perfectly and had made 3/4's of the profits I had expected to make i.e. I was very close to covering the positions. Perhaps I am not taking my profits quickly enough. Working out the risk return ratio for keeping all of these shorts on was extremely poor, one I would never take when entering a trade + I was unable to re-short one of the trades, this is also a real cost. I need to:
1. Consider risk/return payoff when taking profits, include reshort op's & IRR when making the call.
2. Take partial profits, particularly on big positions (VRML).
3. Constantly assess take profit price range, price action dictates this (not me).
4. Trim positions when sitting on large unrealised profits on the total portfolio.