From thestreet.com 9/3/08
If the first day of trading is any guide, September is proving to be as volatile as the last few months. My friend Mike Santoli at Barron's recently noted that the recent market moves can partially be explained by a simple notion: Investors burned by the market are trading bigger and bigger in order to "get back to even."
This makes a lot of sense. I remember a day when naturalgas prices were falling. I had been bullish in the morning -- and right -- as the early trade was higher. But as the day progressed, a weather pattern changed and the sellers took over.
I foolishly decided to defend my position. (That's a very bad idea, as no one is bigger than the market -- a golden rule to successful traders). As prices tumbled, I added to my long positions, assuming that I would need only a small bump up in price to "get back to even."
The price continued to fall, and I continued to add, still only needing a small turn north in price and I could get "back to even."......
