I haven't done any trades in last few days. I still own USO, MON, DXO and FAS long.
Last week i had put option of FAZ (3x bear financials). It was in money at expiration and i thought i would get my profit. But actually when you let your put expire in money, means you shorted that many stocks.
So i got it as shorted on Tuesday (yesterday) at 65.00 and it opened at 75 and went up to 88. So i was in big loss and i cut my losses at 80. And as it happens always, today FAZ came down to $57. So i took loos of $1500. Once day wait and i could have profit of $700. AWWWWWWWWWWWW.
And i decided if it goes below 20 MA on 30 day chart, i will short it again and i didn't becuase i was scared becuase of my previous unsuccessful trades. So frustrating.
I have 500 FAS in my retirement account which i bought at 13.50, i might sell calls on it to collect some premium on it to cover some of my losses.
Some of the lessons i learned .... There is many but just to start with
- Trust Your Chart and Analysis.
- Keep Position Size and Stop Loss
- Don't let your option expire unless you are deep in money.
I didn't put this post couple days ago when i had this trade because i was embarrassed with myself and not following my own rules. I tell everybody to follow some rules and i didn't do it. Shame.....Hopefully this will my valuable lesson for me.
