More lessons learned - getting in
In his last week's round up Jeff emphasized the need to be disciplined and to close out positions. Not only is that very true, but for me this week I learned the vital importance of getting in at the right price.
On Monday I was half an hour behind the best low entry price on DG/$113 calls. I saw price go down below the strike price for a few minutes. I hesitated as it was 45 minutes before the closing bell. Then DG price action rose and I entered minutes before the bell at strike price. On Tuesday I saw price go down and believed it was destined for another low given its TTD performance. I got out at a small loss. Had I entered at the low I could in fact have made my daily target on that same Monday evening or even more had I waited a few hours on the Tuesday price action did rise a bit higher. So my loss was entirely my error of trading judgement and experience.
My lesson is to get in if price action says its a good trade set up for the next day being a low on a call and a high on a put. Then be patient and close out when I reach my daily goal or at my risk tolerance level.
Yesterday's FCX/$39 calls trade I was able to get in at a low and started in small profit this morning. Being announcement day with already oil prices shooting up and no SOR left, the unions getting bailed out, inflation numbers being manipulated the signs are not good. So I took my profit and closed out.
I now like to buy 2 options if the stock price is $50 or lower. Then I can close one and hold the other for a possible better exit price and have enough buying power to cover the trade if needed. A small rise in the option price doubles my return in these early days towards my modest Q4 goal.
This is my first month in the program. I have so much to learn! But I am in profit (very small so far), in my Excel tracking and goal program, and in for the long haul life program.
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need help with zero day options mitch
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zero day options need help learning it
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