Wednesday, September 22, 2010


This was a bad month for me overall and a lousy quarter too. I had lots of winners and one big loser. By my own admission I took on too much risk on one position and when it moved against me I didn't have the stomach to stay in and manage it. I lost over 50% of my monthly profits on one short trade which only had a max possible gain of $200 to begin with. The 5 delta sure looked like stealing money when I put in on. Lesson learned, hopefully. As I posted when I closed this particular trade for a loss, I would have continued to sell short the weeklys and roll the trade up and out until it bit me. It's probably better that it bit me early because I would have got a false sense of confidence with it. I need to stick with what got me to the dance and stop trying to be a cowboy. This is the sort of trade that would have never made it past a risk manager had I been employed or in a trading group. Since I have to be my own filter and thus restrain myself, I need to work on making sure no trades get put on that don't pass the smell test. This will be a hard habit to break as disciplining myself isn't my strong point. But if I want to be a better trader I will simply need to learn to do so. Also, even though this month was a winner as far as realized trades, I've currently got a MTM loss of about ($1500) for OCT OPEX plays that were put on during September.

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