Thursday, May 07, 2009

Two times Lucky (2 of 50)

My tally so far!

Total Trades-2
Wins -2
Loss-0


Well my 607.26 is now is 620.33. That’s USD 13.07 I made …no matter how you look at it is 2.2% return in 10 minutes….

So here I do my usual homework….S&P Futures at +8 …all positive news…but the skeptic I am couldn’t figure out why the market should be going up….

So I decided to buy my PUT option of the day

DIA 86 PUT at 1.67 at 2:34 PM……and said let me make at the least 20 dollars for the time I need to watch it…( Greed for money!) and I was closed out at 2:47 PM at 1.90.
That’s a profit of 21 ( less 2 for Commission) That’s 12.5% return….

And by the time I was home after picking up the girls at 4PM I saw that option was 2.67 at 4PM So I lost out on 60 dollars at least but as I said it could have been a loss too.
So 10 % is the profit I need to be happy with …it’s the act of taking loss I struggle with…

I hear you why are you not buying 3 contracts and only 1….It take guts to gamble even with knowledge…and I don’t want to lose all my capital….

And yet another perspective …Had I invested say USD 1670 instead of USD 167 it would have been USD 210 for the day…(tempting! Right?!)That’s why I don’t give up even with all the huge losses…. And if I was the rich one I would have put in 16700 and made USD 2100 in 13 minutes….( wonder then Why should I be looking for a job?)…….well as I said..the losses are big in options so beware!

2 comments:

  1. you know...I'd never think of doing what you're doing...I'd never have the nerve (let alone the capital!) but I can imagine it's quite exciting?...your enthusiasm spills out in your writing!

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  2. Hey Niall I feel really happy you managed to read this....I am posting this as a part of self teaching/discipling process!

    If you ever want to try it with paper money...let me know...no need to have nerve for that...(its paper money and virtual trading)...

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