Tuesday, May 12, 2009

Watching Paint Dry ( 4 of 50)

Note: Read only if you understand US Market - Options Trading

My tally so far!

Total Trades-4
Wins -3
Loss-1


The title aptly describes how my trading DAY went....

This week is the worst for day trading( the reason being I cant trade the option that expires this week.-Its too risky and the losses will be huge if the trade doesn't go my way!And the June option that expires on June 19th will not have enough volatility to trade)

Anyways since DOW futures were showing opening negative 100 points...it didnt make any sense to trade a PUT...although DOW ended 155 points down at the end of day...
Had I known that...buying a PUT was better!

So I decided on 84 CALL +DAVFF....It altogether had a range od 50 cents for the day. which was not bad....you could scrape 20 cents off that.

Like I said...CALL options seems to hardly work for me...also I think I should aim for only 10 cents per option ....this week...

Transactions for the day!

Time Symbol Event Message Qty. Filled

09:39:21 +DAVFF Executed Bought 1 +DAVFF at 3.40
13:01:08 +DAVFF Executed Bought 1 +DAVFF at 3.20
15:54:43 +DAVFF Executed Sold 1 +DAVFF at 3.20
16:00:24 +DAVFF Executed Sold 1 +DAVFF at 3.12

I bought and sold one contract at the same price ( will still lose $2 on commission)
The other I decided to take a loss ( 3.4-3.12=30 (28+2).and closed the trade...it doesn't harm to hold it since you still 5 weeks to expiry..I still wanted to discpline myself and said" tomorrow may provide a better opportunity and also I should stick to my 30 to 40 minute trading day than watching the market for 8 hrs...what a waste! watching a option like that is watching paint dry!"




2 comments:

  1. I sometimes watch paint dry..it's part of my job...maybe once your 'paint' is dry and you've made a killing with your trading...you can use the 'piant' to 'paint the town red'

    PS..I know nothing about share trading etc...but i like reading what you write about it...maybe you should write a simple guide about it for the others likes of me?

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  2. Never thought of watching paint dry that way...simple guide will come soon.
    ..
    I wish I could make the money and "paint the town red" but first goal is I want to buy a home of my choice some day ( not of my husband's)and I know nothing else other than "options trading" I can do to achieve that dream!So want to keep trying!

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