Today trading BIDU I made two trades that are very different. One was a trade with which I had supreme confidence. The other was a good trade that probably would work but I wasn’t sure. One was an A trade. The other wasn’t. One can make my month. The other can cause heartache, like that girl who just isn’t available.

On the Open BIDU gapped down, held the opening bid, and then met resistance at 71.62. The resistance was significant. I could see the seller on the tape. I could explain the seller, where he was, and what he was doing. 72 was a technical resistance level. If this seller held a downtrend to 70 was possible. I got short.

I loved this trade. I was in complete control. To myself I thought, “I want to be in this trade!” When the stock found 70.40 this made perfect sense to me. It was easy as buying a pack of gum.

Later I shorted in front of the 72 technical level. BIDU broke its downtrend and was climbing towards 72. There was no real seller near 72. It was just the naked technical level of 72 that could cause a downmove. I got short. The stock like a bug that senses it is not in the right place hit a wall near 72 and quickly scurried in the opposite direction some 75c.

And then BIDU came to this technical level again. I reshorted. I just wasn’t feeling it. It might work. It might not. There was no voice in my head, “You got this Bella. This is an A trade. This is the trade you want to be in.” BIDU traded above resistance. I covered. It failed. I reshorted and BIDU started a steep descent. But this was a tough trade, one few can make a living mastering.

Three of us walked back from grabbing lunch and I reviewed this 71.62 opportunity. Each trading day I review my trades in my head searching for that trade of supreme confidence, the A trade, the trade I want to be in.