Didn't cut losses as planned and now paying dearly

[caption id="attachment_297" align="aligncenter" width="500" caption="ESLR"][ESLR][][/caption]

I placed some limit sell on ESLR last Friday at \$6, and then lowered to \$5.7. I lowered it again to \$5.6 in the morning and actually thought of executing a market sell when it was around \$5.55. In that hour or so, I pondered should I exit my ESLR to limit my exposure to market volatility. At the time, ESLR was my weakest position, and my 2nd most money losing holding.

My intraday signals were showing weakness, but my daily was undecided. Just before lunch, I decided to keep my shares (and cancelled my exit working order) because I want to hold this for the long term (at least weeks).

In retrospect, I really should trust my signals. I knew the market could dive in the short term as we haven't reached capitulation and widespread fear yet. I have let my emotion got the better of me by not wanting to miss the bottom. In hindsight, the phrase "it's better to be safe than sorry" couldn't have been more appropriate.

ESLR closed at \$3.47 yesterday, way below my initial stop loss target of \$5.6. The time to cut losses short is long gone. It's either surrender now or wait for the calming of the market.

I decided to wait through the storm in this round. I still think we are very near the bottom. Hmm... haven't I said that before already when ESLR was at \$6.0+ ... ?

[caption id="attachment_298" align="aligncenter" width="500" caption="DJIA"][DJIA][][/caption]

Seriously, I will wait a few days until making an order. There's too much emotion in the market at the moment. (i.e. WSJ: Central Banks Cut Rates World-Wide in Emergency Move)

[ESLR]: http://traderpau.files.wordpress.com/2008/10/2008-10-08-eslr.png [DJIA]: http://traderpau.files.wordpress.com/2008/10/2008-10-08-djx.png