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Grading your trades


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#1 maineman

maineman

    maineman

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Posted 31 January 2007 - 04:07 PM

I was taught to grade each and every trade at the end of the day. Here goes. I bought way too many cheap OEX Feb 670 calls over the past few days on dips, with the plan that I would flip them for pocket change into the expected post-fed volatility. And I did, only to see these puppies shoot up another buck. Nice profit, but ooch, ouch, I'd give it a "B" The second trade was to nab the OEX 665 PUT right on the low tick, and flipped these for a quick profit, only to see them inch up another 20cents. I'd grade that one an A, because it worked out just as I planned. The "B" on the first trade was simply not pulling the plug on the sell orders once I saw the MASSIVE premium Spike to over 7 right after the Fed statement. This was one of those rare "bell ringers" that told us the market was going to surge higher. And in all honesty the B should probably be a B minus because I bought more than my trading plan called for, got a little risky. In hindsight, had I bought my normal amount of supply, I may have been less edgy to bag the profits. As it was, I felt I was overextended and therefore too quick to pull the trigger. You know what I love about trading? Learning every day.... (I see now that the OEX puts are up another20cents... never look back,,,,never look back, never look back...) mm
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