Catching A Falling Knife

I have to review my trading rules again. The first rule is to never try to catch a falling knife. I tried that with the China ETF recently and luckily got out without a scratch. Yesterday, I tried it again with Lehman Brothers (Ticker: LEH) and got out quickly when things didn’t feel right. I nibbled at some Lehman shares @ $7.847 and quickly sold out @ $7.89. I was very fortunate in these situations and I know my luck my not last. So I have to keep telling myself: “DO NOT TRY TO CATCH A FALLING KNIFE!”