Lessons from 26 - 29 September Trading
Okay, I think I got into a deep loss on my practice trading account on 26 - 29 Sept phase. Here’s the positions that flunked:
- GE. I put a buy call and buy put on this stock and the result is +$0.10/share on my call and -$0.15 on my put. LESSON: make sure that the stock has enough volatility (and also delta neutral for the options) before you enter a straddle position.
- RIMM. I actually put in a buy put and currently on trailing -$2.85/share. I don’t know why because my previous comment on this stock is that it’s ready to break a new high. I don’t know what gotten into me, probably a mistake on the button clicks? LESSON: always make sure you are trading what you are trading. If your analysis is a buy for a stock, then make sure that you are actually BUYING it. Recheck it after you entered your order, who knows that you’re in a moment of temporary insanity?
- MSCC. Several days ago I blogged about how this company will get lower and lower. The commentaries are correct, it is indeed going lower. I even short the stock and come up with quite a profit per share. Unfortunately, after covering my short position, I entered the buy position for the stock, and eventually on floating loss of -$0.6/share, under the influence of my friend’s advice (it’s already low, how can it go any lower?).LESSON: Make your trading decisions by your self. I do respect my friend because he’s more experienced in trading than me, but still, if your money is on the line you better think for your self. PS: I’m also the one to blame on this because I changed my expectations on the stock without going through the analysis deeper.
If you avoid my mistakes, you will do just fine ;)
[...] Overall, I’m still on a big losses because some of my bad decisions. And because of that, I will not going to post any recommendations or buy/sell any stocks/options today. I think I have to dig deeper tomorrow to find a better market ideas. [...]