Never learn my lesson ( 9 of 50)

Note:If you dont follow US options Trading...Reading this would be a waste of time..
You may look at the labels on the right side and choose what is of interest to you!

My tally so far!

Total Trades-9
Wins -7(+13+21+21+18+28+19+28)
Loss-2(-32-77)
So net=39$

Today was a bad day for my trading...as usual lack of discipline....The Gurus say Traders goes through three phases in the 3 D's Disappointment/Discipline/Domination

Trading Summary for the day!



093336 DAV RF DIA Jun '09 @ 84.00 PUT 1.000 -290.96
094505 DAV RF DIA Jun '09 @ 84.00 PUT 1.000 -285.96
104259 DAV FI DIA Jun '09 @ 87.00 CALL 1.000 -124.96
114934 DAV FI DIA Jun '09 @ 87.00 CALL -1.000 124.03
155627 DAV RF DIA Jun '09 @ 84.00 PUT -1.000 214.03

The CALL transactions can be ignored so then then you are left with buy at 290.96 and sell at 214.03....thats a loss of 77 dollars ! OUCH ! that hurts...I am holding onto the other option as I am still hopeful that market will cool down this week...
Why I didnt hold on both ? Because I do not know for sure ...I need to trade by what I see and not what I think alone.

Economic News of the week!

May 19 8:30 AM Building Permits Apr
May 19 8:30 AM Housing Starts Apr
May 20 10:30 AM Crude Inventories
May 20 2:00 PM FOMC Minutes
May 21 8:30 AM Initial Claims
May 21 10:00 AM Leading Indicators
May 21 10:00 AM Philadelphia Fed

As all these economic news is in the next 4 days there will be high volatility and opportunities to trade! So I decided to hold one option since I was not disciplined to sell it at a small loss....was that the best thing to do ? Hell No! Should have taken a 40 dollar loss on 2 options and closed the trade within an hour of trading..as this time the sentiment took over the reality....so
I lost....the only lifeline here was discipline which I failed miserably!

Now if there was more money that I was trading with then the previous profits I would not have been wiped out ..thats where the concept of money management would have come in...You go to trade only less that 50% profits you made..or you always take away 50% of the profit you make...this is not possible with such little capital..Thats one way to looks at it....

The other way to argue is if you can't be disciplined with 500 USD can you be with 50000 USD....one of my mentors always said...if you cant double 1000 USD there is no way you can double 100000....well I can't prove otherwise yet....though I am not convinced...