Here is some more free advice...I've found that after I've had an excellent day, the day after or a couple of days later, I get sloppy in my picks/discipline and have had my biggest losses, that wiped out many good weeks. I swing/position/daytrade options, so the profits/losses can be dramatic...
I learned to risk very little holding through earnings...on March 9, 1999 I went long 16 contracts of CMGI call 190 for $25 (total ~$40K), planned on selling the day before earnings or when it hit my target...I saw it hit my target (which the total position was worth over 60K), but stupidly became conviced they would announce a split...didn't book my profits & held over earnings...ended up selling the 16 contracts on March 16, 1999 for $7 1/8 (~11K).
Another good lesson is if things aren't working right...get flat On March 18, 1999 I went long 5 NSOL 300 April calls for 51 1/8 (~25K)...on March 22, 1999 ?around 12:15 PST I started having technical difficulties... ~12:30 NSOL started tanking and dropped 60 pts, and I couldn't get out. On March 23, 1999 I finally was able to get out @ $9 1/8 (~4K).
Thus this morning on YHOO I was having trouble selling my YHOO Dec 270 calls. After I unloaded them, I wanted to rebuy a higher strike...for some reason I couldn't get filled on my limit order...@ one pt. the ask on the YHOO calls was over 2pts below my buy limit after 3-5 min of YHOO pulling back, I just canceled my order & moved to another stock (unfortunate huh :), but I'm content with what I got although those 5 digits could of bought me a new snowboard...drat : )
I strongly dislike experiencing stories of 5 digit losses, but I like them because I learned a valuable lesson...good thing they come after I booked some profits >gg<, and I'm still taking some lumps...but I'm slowly learning to take my profits and be happy, and most importantly I'm still in the game. FWIW I started this yr with 2K...so as long as I have my 2K I'm happy : )
Best of Luck,
Where'd He Go? |
