Saturday, May 29, 2010

May Trading

I have a bad taste in my mouth this month, fairly disgusted. Few gains were had, only one closed trade had a profit higher than the amount I was risking. The details are tough to write about.

The big gain was a daytrade in SDS. The big losses were in what turned out to be short term trades in XLF, VMW, and BIDU puts. I was correct but early on the puts, bought them near the top, maybe two days early. Well that two days early stuff handed me near total loss of position and I ended up selling them as they came back a few days before expiry for a 3R loss in 2 accts, so this was a 6R loss! In a cruel kick to the nads, they closed in the money for what would have been a similar gain. I got more nad kicking with the VMW and XLF spots. They closed one day just shy of an R loss each, then went pretty fast to 3R loss the next day. Based upon my rules, I took the loss, they did go lower. Again VMW was 6R due to holding in 2 accts. When I'd bought the VMW, I saw it as a leader that I was really willing to give 2% loss to, not .5%.

I am going to chew on this for a while b4 commenting further.


  1. Does your strategy involve holding significant amounts of puts overnight? I am not trying to bury you, but that is a horrible nightmarish strategy. If you are going to day trade then day trade, if you are going to swing trade then you have to be trading STOCK not options. Of course if you buy a tiny tiny amount of options then it's fine, but it sounds like you are getting wiped out with options which means you are an overleveraged swing trader. STOP IT!

  2. It was 10% of my capitol that was quickly flushed and nearly recovered. I lost 3% of my capitol in the trade.

    Thanks for the feedback.