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Sep 30

full time trader log 2012 09 28

full time traderUnderlying Stock : NFLX & AMZN

Strike : 55 Put (NFLX), 55 Call (NFLX), 255 Put (AMZN)

No. of contracts : 10, 20 & 9 contracts

Enter/exit price : 0.28/0.40, 0.43/0.22 & 0.80/1.037

Holding time : 3 mins, 28 mins & 12 mins

Net Loss : $130

 

Reason to enter trade:

Used up all daytrades in one single session. Impulsive and rash:-

1) Trade #1 – NFLX Put, made gain of $109. Should have left it as it is and switched off the laptop.

2) Trade #2 – NFLX Call, 4 mistakes in a single trade. Mistake #1, greedy, should not have entered any more position since Trade #1 already met the target of the day. I recalled my emotion of that moment, “Oh, I did not trade for couple of days back, let’s make up loss time”, and loss was what I made! Mistake #2, averaged the position in a loss making status. Mistake #3, did not cut loss!! Mistake #4, hope! Already making losses way out of my stop loss target, I then hoped that the position would turn my way. Hope is one of the deadliest enemy of a trader.

3) Trade #3 – AMZN Put, got some consolation here and gained $204. But I was again too eager to make up for loss $$. I remembered my emotion, I was having a loss of $334 before entering this trade and was again “hoping” to cover the losses. I did, but the psychology wasn’t right, I traded because I wanted “revenge” on the market, which was dead wrong!

When will I ever learn?

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