Jonathan,
You make some great points in your post. Greed, fear and not following your game plan (assuming you have one), are the giant killers in the trading game. I too have learned the hard way to minimize risk first, and then to take my pre-established profit margin when it shows up, or to exit per game plan when it doesn't. Sometimes it takes iron discipline to trade into a sh...storm, when the plan calls for it, or to exit when you are just ABSOLUTELY (yeah, right) sure the deal of the century is right in front of you. But you gotta do it if you want to play the next day.
Dan,
I am not tracking your plays blow-by-blow on EDFY, but it appears that you are day-trading the covered calls. This seems like a cumbersome way to trade this stock, when it looks to be a good? candidate for pure day trading. Why mess with sluggish options, when you could be scalping, or playing the news, etc.? I guess I'm struggling with the underlying rational. Understand, I'm not being critical...I'm just wondering if it is really worth the effort. Do you have any rolled up monthly numbers on your approach yet that we can compare with our own, somewhat more placid approaches?
Dave |
