Importance of waiting for a proper setup.

On my ZIXI trade (see previous post) I entered my position prematurely, luckily it worked out well anyway. Now I've done the same thing with my shorts in NTRI and NURO. Although both were overbought, I had no confirmation that the stock would be reacting to that. Moreover, I entered these short positions because I believed the market was overbought and we were due for a pullback, which I still believe. Still, I should have waited for the market to turn, which it hasn't yet, and now I'm swimming against the stream.

On NTRI, it penetrated resistance at the 50 dma. If I had waited, I would not have entered the position. As it is now, up 4.14 % today, I may be stopped out before the day is up. If the market turns down, I suspect NTRI will cross back through the 50 dma and continue down.

On NURO, it appears unable to penetrate the 50 dma resistance and is down slightly less than a percent. That resistance is saving me from my imprudent premature entry. No doubt it would be dropping more precipitously if the market had already begun its pullback.

I will stay in the positions for now. Although I anticipate a pullback, trading against the market is a tough way to make money, and I'm not forgetting the axiom that the market can remain irrational for longer than I can remain solvent. If the anticipated pullback fails to materialize, I will be out of these positions.