From Retracement levels:
Go long: 873 and below
Go Short: 925 and above
Saturday, November 29, 2008
Thursday, November 20, 2008
With last night's thinking that GOOG is falling, I sold the calls first thing in the morning. I was in a panic to see GOOG down -$10 in the morning. As I sold the calls, I immediately bought puts and then seeing the stock move I sold some puts against it (to protect it) in case the stock moves up. In few minutes the stock did move up and turned green, that made me feel proud of covering myself from such a situation. But the next hr the stock started falling along with the rest of the mkt and ended down a record.
I did manage to do some thinking before selling the put. I bought Dec. put and sold Nov. one as that will expire in only one day. I thought of it as a sure thing, the OTM puts will be worth nothing tomorrow as I will benefit from any upward movement this week.
To my amazement however, the stock moved down hard ending -$20 for the day. The put I sold tripled in price while the one I bought only increased slightly. The stock's decline had an inverse affect on my spread strategy, as to what I had imagined.
I did manage to do some thinking before selling the put. I bought Dec. put and sold Nov. one as that will expire in only one day. I thought of it as a sure thing, the OTM puts will be worth nothing tomorrow as I will benefit from any upward movement this week.
To my amazement however, the stock moved down hard ending -$20 for the day. The put I sold tripled in price while the one I bought only increased slightly. The stock's decline had an inverse affect on my spread strategy, as to what I had imagined.
Dow off 445; S&Pat 11-year low
Energy stocks pull markets lower after crude drops below $50. Citigroup falls below $5. A rally stalls after opposition scuttles a deal to help automakers. New jobless claims hit a 16-year high. Stocks to watch: Citigroup, General Motors, Ford Motor and ExxonMobil.
Wall Street sells off, S&P 500 at 11-1/2 year low
Stocks tumble for second day; Treasurys surge
Dems postpone vote on auto bailout
VIX 80.86 +6.60 +8.89%
SKF 262.45 +39.62 +17.78%
GOOG 259.56 -20.62 -7.36%
FSLR 87.23 -13.90 -13.74%
GS 52.00 -3.18 -5.76%
AAPL 80.49 -5.80 -6.72%
Energy stocks pull markets lower after crude drops below $50. Citigroup falls below $5. A rally stalls after opposition scuttles a deal to help automakers. New jobless claims hit a 16-year high. Stocks to watch: Citigroup, General Motors, Ford Motor and ExxonMobil.
Wall Street sells off, S&P 500 at 11-1/2 year low
Stocks tumble for second day; Treasurys surge
Dems postpone vote on auto bailout
VIX 80.86 +6.60 +8.89%
SKF 262.45 +39.62 +17.78%
GOOG 259.56 -20.62 -7.36%
FSLR 87.23 -13.90 -13.74%
GS 52.00 -3.18 -5.76%
AAPL 80.49 -5.80 -6.72%
Wednesday, November 19, 2008
GOOG went down again today (GOOG 280.18 -17.24 -5.80%), along with the rest of the mkt. As I saw the stock down in the morning I was somewhat relieved. Last night I had this feeling that the stock will open up high in the morning. I had accepted taking a loss in my mind. Having seen GOOG move up almost $10 in the last hr of trading yesterday, I was very sure that it will keep moving higher in the morning. There was a sense of loss by 1. not selling when I could have early in the day and 2. puts further losing value in the morning.
After missing timely sell of this put at a goof profit twice before, I was really tempted to not miss the opportunity of selling it at a higher price this time. This thinking at the back of my mind really pushed me into selling quickly. If it was not for this was not for this background, I would have waited until the last hr (as I have been doing the last few weeks) and sold it at a higher price.
In other words I was trading today based on experiences from yesterday. I thought the stock will do something much like it did yesterday. In fact, after selling the put in the morning I was waiting for the stock to bounce near the closing today and I will be buying it again at a lower price. But in fact that did not happen, the stock kept moving down and the puts increased in price value.
After my successful sell in the morning, I felt somewhat proud of myself, by not missing out this time. As being successful this time I already had another trade figured out in my mind. I looked at the 5 day chart of GOOG and assumed (with great confidence) that GOOG (always) moves higher near the end of the day and then falls back the next morning. So all I had to do was sell now wait until the last hr buy back and sell the next day. I told myself that I finally had it figure out. The stock did bounce a little (not as much I was expecting) I did not buy. It did not move up again for the rest of the day and closed making another low.
Being disappointed at myself for missing a trade I had planned and waited on since this morning, I almost did a revenge trade on GOOG. I bought 5 call contracts. It was a very unplanned, reactive and impulsive trade. I know that GOOG sometimes spikes up for no reason. If that happens tomorrow this will prove to be a good trade otherwise it was just another emotional/irrational trade decision.
After missing timely sell of this put at a goof profit twice before, I was really tempted to not miss the opportunity of selling it at a higher price this time. This thinking at the back of my mind really pushed me into selling quickly. If it was not for this was not for this background, I would have waited until the last hr (as I have been doing the last few weeks) and sold it at a higher price.
In other words I was trading today based on experiences from yesterday. I thought the stock will do something much like it did yesterday. In fact, after selling the put in the morning I was waiting for the stock to bounce near the closing today and I will be buying it again at a lower price. But in fact that did not happen, the stock kept moving down and the puts increased in price value.
After my successful sell in the morning, I felt somewhat proud of myself, by not missing out this time. As being successful this time I already had another trade figured out in my mind. I looked at the 5 day chart of GOOG and assumed (with great confidence) that GOOG (always) moves higher near the end of the day and then falls back the next morning. So all I had to do was sell now wait until the last hr buy back and sell the next day. I told myself that I finally had it figure out. The stock did bounce a little (not as much I was expecting) I did not buy. It did not move up again for the rest of the day and closed making another low.
Being disappointed at myself for missing a trade I had planned and waited on since this morning, I almost did a revenge trade on GOOG. I bought 5 call contracts. It was a very unplanned, reactive and impulsive trade. I know that GOOG sometimes spikes up for no reason. If that happens tomorrow this will prove to be a good trade otherwise it was just another emotional/irrational trade decision.
Tuesday, November 18, 2008
As I saw GOOG down -$10 in the morning I sold the calls to save what was left of them. The stock has moved down and since the calls had only 3 days to expire, I imagined that I should take whatever I can at this point.
I watched GOOG keep moving down later in the day, I moved fast to cover the puts I was short leaving the long ones and let it to appreciate in price as the stock moves further down during the final closing hr of the day. Once I did cover the puts at high prices the opposite of what I though would happen happened. GOOG moved higher, the puts, I had covered earlier, became more cheaper and the puts I held lost value thus deepening my loses.
I watched GOOG keep moving down later in the day, I moved fast to cover the puts I was short leaving the long ones and let it to appreciate in price as the stock moves further down during the final closing hr of the day. Once I did cover the puts at high prices the opposite of what I though would happen happened. GOOG moved higher, the puts, I had covered earlier, became more cheaper and the puts I held lost value thus deepening my loses.
reacting to every move
Today, my bad luck continued... after I cover my short @ $24 & $21 the option moved to ask @ $17. Imagining, that I could have covered it @ $17 made me wonder, every time I think the stock is moving down it turns around and goes up.
I am not really thinking very rational, I am (more like) hoping for the price to move one way or the other that is why I am always disappointed at the price movement. Even when I can see that the price is moving down I am hoping that it will reverse soon and start going up. That is why I am almost always wrong on the price move.
Not only am I predicting the price action incorrectly, I am also acting before the move does happen. I sell just before my prediction becomes true. Soon after, as I look in despair, my price target getting hit while I just sold out my position. This must be the ultimate 'Emotional Trading' that I am going through right now. I am reacting to every little move very impatiently.
I am not really thinking very rational, I am (more like) hoping for the price to move one way or the other that is why I am always disappointed at the price movement. Even when I can see that the price is moving down I am hoping that it will reverse soon and start going up. That is why I am almost always wrong on the price move.
Not only am I predicting the price action incorrectly, I am also acting before the move does happen. I sell just before my prediction becomes true. Soon after, as I look in despair, my price target getting hit while I just sold out my position. This must be the ultimate 'Emotional Trading' that I am going through right now. I am reacting to every little move very impatiently.
Monday, November 17, 2008
In utter panic, that I have been after not taking the on GOOG's fall, which had piratically doubling my position, I have been trading mostly in panic. I was very disappointed in my self with the last trade, as it turned into a disaster for me. Missing a good opportunity by not selling after good gains. I have been thinking and wishing hard to somehow make the losses go away, but instead the loss is deepening and I seem to be doing everything wrong.
After GOOG went down a lot and I kept holding on to my puts expecting it to go down more (greed as usual), the stock immediately (along with the mkt) turned around and shot high. My heavy position holding puts which were killed by this sudden move. More then anything I was disgusted and deeply disappointed at myself for not acting fast. But even then, somehow I still kept holding on to the puts, still having a belief that the stock will turn down once again. The next day fearing another rally, trying as usual to resist taking a loss, and finally to get back at GOOG I sold higher strike puts against my position. Ironically, the stock did move lower today and the day before and would have reduced the damage by not doing anything just holding my puts.
Over the weekend I had thought about how to remedy this situation under different scenarios.
My plan was:
1. If the stock moved lower I will cover my short positing and leave the long ones. Early in the morning I did follow this plan and sold 2 out of the 6 short contracts while leaving the others intact. Later in the day I did sell another two, thus well positioning my self for the down move. However, when the stock fluctuated I panicked and sold almost all of the long puts as well and also bought 10 call contracts, fearing the stock is moving higher, leaving my puts worth nothing. Near the close the stock moved lower -$10 thus proving me all wrong and killing my account badly.
2. If the stock moved up I would benefit by covering my shorts at a lower price and also adding calls immediately, thus offsetting my losses in the put position. Unfortunately, the stock moved both up and down and I only reacted in a panic.
This time my account has taken a big loss, I have almost lost all my capital and will not be able to trade for a while.
After GOOG went down a lot and I kept holding on to my puts expecting it to go down more (greed as usual), the stock immediately (along with the mkt) turned around and shot high. My heavy position holding puts which were killed by this sudden move. More then anything I was disgusted and deeply disappointed at myself for not acting fast. But even then, somehow I still kept holding on to the puts, still having a belief that the stock will turn down once again. The next day fearing another rally, trying as usual to resist taking a loss, and finally to get back at GOOG I sold higher strike puts against my position. Ironically, the stock did move lower today and the day before and would have reduced the damage by not doing anything just holding my puts.
Over the weekend I had thought about how to remedy this situation under different scenarios.
My plan was:
1. If the stock moved lower I will cover my short positing and leave the long ones. Early in the morning I did follow this plan and sold 2 out of the 6 short contracts while leaving the others intact. Later in the day I did sell another two, thus well positioning my self for the down move. However, when the stock fluctuated I panicked and sold almost all of the long puts as well and also bought 10 call contracts, fearing the stock is moving higher, leaving my puts worth nothing. Near the close the stock moved lower -$10 thus proving me all wrong and killing my account badly.
2. If the stock moved up I would benefit by covering my shorts at a lower price and also adding calls immediately, thus offsetting my losses in the put position. Unfortunately, the stock moved both up and down and I only reacted in a panic.
This time my account has taken a big loss, I have almost lost all my capital and will not be able to trade for a while.
Wednesday, November 12, 2008
I am still holding all my GOOG puts today. I did not place any order today or even look at my account the whole day. This is how I behave if the the position is going well for me. I avoid looking at the account on such occasions, lest I will be tempted to do something unnecessary. I believe since GOOG has broken down a major support level $300, it will keep going down in the near term till it finds a new support level. I will be eagerly watching to see what happens tomorrow and the day after. Both today and yesterday the stock has traded at 9- 10 mil shares vs daily avg vol of 6 mil.
This fall in GOOG couldn't have come at a better time for me for these three reasons:
1. I had several losing trades in a row in the last two weeks,
2. I had given back all the gains I made in the last month or so.
3. I had (accidentally) bought two many puts (6 contracts almost 60% of my account) on GOOG.
Hopefully, I wont be proven wrong and the stock will not reverse on me tomorrow morning. If it did that will be a huge disappointment for me, since my hopes are high for regaining some of my recent losses with this trade.
I do believe there is nothing certain in trading and especially in my way of trading. My trades can reverse at anytime and show a loss after being up several times in the past.
This fall in GOOG couldn't have come at a better time for me for these three reasons:
1. I had several losing trades in a row in the last two weeks,
2. I had given back all the gains I made in the last month or so.
3. I had (accidentally) bought two many puts (6 contracts almost 60% of my account) on GOOG.
Hopefully, I wont be proven wrong and the stock will not reverse on me tomorrow morning. If it did that will be a huge disappointment for me, since my hopes are high for regaining some of my recent losses with this trade.
I do believe there is nothing certain in trading and especially in my way of trading. My trades can reverse at anytime and show a loss after being up several times in the past.
Treasury backs away from plan to buy bad assets
The Bush administration on Wednesday publicly backed away from using a $700 billion bailout fund to buy toxic mortgage assets as originally intended, and said it will focus instead on shoring up financial institutions with direct investments.
Stocks fall further on deepening economic woes
Best Buy cuts forecast as sales slump
Congress panel eyes $25 billion automaker loan bill
Dimon: Recession could be worse than market crisis
Google falls below $300 for 1st time since 2005
Google shares slid $22.27, or 7.2 percent, to $289.19. The stock, which traded over $700 as recently as last December, earlier hit a new year low of $287.76.
VIX 66.25 +4.81 +7.83%
FXP 172.98 +16.98 +10.88%
GOOG 291.00 -20.46 -6.57%
FSLR 110.06 -20.84 -15.92%
GS 66.79 -7.89 -10.57%
ISRG 161.94 -7.43 -4.39%
The Bush administration on Wednesday publicly backed away from using a $700 billion bailout fund to buy toxic mortgage assets as originally intended, and said it will focus instead on shoring up financial institutions with direct investments.
Stocks fall further on deepening economic woes
Best Buy cuts forecast as sales slump
Congress panel eyes $25 billion automaker loan bill
Dimon: Recession could be worse than market crisis
Google falls below $300 for 1st time since 2005
Google shares slid $22.27, or 7.2 percent, to $289.19. The stock, which traded over $700 as recently as last December, earlier hit a new year low of $287.76.
VIX 66.25 +4.81 +7.83%
FXP 172.98 +16.98 +10.88%
GOOG 291.00 -20.46 -6.57%
FSLR 110.06 -20.84 -15.92%
GS 66.79 -7.89 -10.57%
ISRG 161.94 -7.43 -4.39%
Tuesday, November 11, 2008
As I saw GOOG down -$9 in the morning I immediately sold my calls that I was holding since yesterday. I started to think that GOOG has broken the $310 support level and is heading for a further decline. This being at the back of my mind, I placed an order to buy 3 put contracts which was executed in few minutes. Later when I checked my account, I found to my surprise, that I had somehow bought 6 contracts of the same puts when I meant to buy only 3. I was confused and upset as I did not meant to keep my risk low.
After I bought the puts the stock moved further lower to being down -$15 at one point, but then reversed and ended being down only -$6 for the day. It moved from being down -$15 to down -$1 at one point and then moved down again.
The stock mkt also moved lower today for a while and the moved back up.
Today realized that mornings/opening times are very hectic these days. There are a lot of sharp movements in prices. Stocks are moving very fast just displaying the high emotions that traders must be going through at that time.
After I bought the puts the stock moved further lower to being down -$15 at one point, but then reversed and ended being down only -$6 for the day. It moved from being down -$15 to down -$1 at one point and then moved down again.
The stock mkt also moved lower today for a while and the moved back up.
Today realized that mornings/opening times are very hectic these days. There are a lot of sharp movements in prices. Stocks are moving very fast just displaying the high emotions that traders must be going through at that time.
Economic worries weigh on markets
Gov't to announce new loan aid effort
Oil falls to new 20-month low below $59
A look at economic developments around the world
Health insurer stocks see sharper fall than market
Stocks drop as Tyco, Alcoa fuel economic worries
Stocks slid on Tuesday as production cuts at aluminum maker Alcoa, a dismal outlook from Tyco International and weak results at Starbucks underscored fears the economic slowdown will deepen.
GOOG 309.34 -9.44 -2.96%
BIDU 192.90 -18.38 -8.70%
FSLR 131.12 -7.38 -5.33%
FXP 75.31 +5.81 +8.36%
Gov't to announce new loan aid effort
Oil falls to new 20-month low below $59
A look at economic developments around the world
Health insurer stocks see sharper fall than market
Stocks drop as Tyco, Alcoa fuel economic worries
Stocks slid on Tuesday as production cuts at aluminum maker Alcoa, a dismal outlook from Tyco International and weak results at Starbucks underscored fears the economic slowdown will deepen.
GOOG 309.34 -9.44 -2.96%
BIDU 192.90 -18.38 -8.70%
FSLR 131.12 -7.38 -5.33%
FXP 75.31 +5.81 +8.36%
Monday, November 10, 2008
I got rid of the MA calls at very low price, taking a big loss on the trade. Although, my guess was right for the morning. The mkt infact was up early around 6:45am. MA was up too at that time. The calls were up quite a bit. Then I decided to wait for more upward movement. I told myself that MA has just turned around it will keep moving upward now for few days at least. But later in the day MA and the mkt as a whole turned around. I had to sell my calls almost at 1/4 of the price of what they were in the morning. MA ended up being down -$5 for the day.
GOOG was down a lot today too, at one point it was down -$20. I was watching and waiting for the calls to get lower and lower in price as the stock kept moving down. Near the close of the day the stock started moving up and was down 0nly -$13, at this point I decided to buy the calls feeling desperate to catch the upward move. In the morning I had set a limit order to buy 3 contracts for $5 when the ask were more then $12. Ultimately the calls came down to $6 I got my fill @ $7 for three contracts.
I am expecting GOOG to bounce off the $310 support, I waited for the stock to hit that level before I get in. It did hit $310 and then moved higher.
GOOG was down a lot today too, at one point it was down -$20. I was watching and waiting for the calls to get lower and lower in price as the stock kept moving down. Near the close of the day the stock started moving up and was down 0nly -$13, at this point I decided to buy the calls feeling desperate to catch the upward move. In the morning I had set a limit order to buy 3 contracts for $5 when the ask were more then $12. Ultimately the calls came down to $6 I got my fill @ $7 for three contracts.
I am expecting GOOG to bounce off the $310 support, I waited for the stock to hit that level before I get in. It did hit $310 and then moved higher.
Friday, November 7, 2008
GOOG was not moving, it was not moving up or down (-$1). At one point it was down -$5 and then moved back up again. I thought it would go down again soon that fear resulted in me selling the calls at a loss. I did felt better as I cut my losses on this trade. I was too quick on jumping on the calls this time. I will monitor the stock on monday again.
After my MA calls losing more then 1/2 of its value the stock started showing upward movement. I thought my inverse inverse strategy has started to work on this. May be I was too quick on buying these calls earlier in the week. I also covered the calls I was short of earlier in the day. As I saw the stock up, I assumed it has turned around and I doubled my position adding 3 calls to the existing 3 contracts. MA was +$4.5 for the day.
After my MA calls losing more then 1/2 of its value the stock started showing upward movement. I thought my inverse inverse strategy has started to work on this. May be I was too quick on buying these calls earlier in the week. I also covered the calls I was short of earlier in the day. As I saw the stock up, I assumed it has turned around and I doubled my position adding 3 calls to the existing 3 contracts. MA was +$4.5 for the day.
Stocks are higher despite jobs data
The unemployment rate hits a 14-year high of 6.5%, as the economy shed 240,000 jobs in October. Revenues plunge at Ford and General Motors. Microsoft's chief says the company is not interested in buying Yahoo
Pending home sales fall, tight credit bites
Financial rescue not yet done: Treasury's Kashkari
MA 147.73 +4.43 +3.09%
The unemployment rate hits a 14-year high of 6.5%, as the economy shed 240,000 jobs in October. Revenues plunge at Ford and General Motors. Microsoft's chief says the company is not interested in buying Yahoo
Pending home sales fall, tight credit bites
Financial rescue not yet done: Treasury's Kashkari
MA 147.73 +4.43 +3.09%
Thursday, November 6, 2008
I sold the FSLR puts, the stock was down -$9 for the day, it kept moving down today like yesterday. In two days it has dropped more then -$35. This steep decline had an impact on my decision to sell the puts. As soon as I saw that the stock down this morning, I was delighted and was ready to sell. I watched the stock all day, as it moved down -$13 at one point, but I did not sell, waiting for it to go decline further (as usual greed).
MA has been on a decline as well. It closed down -$12. I am still holding to both of my long and short call contracts, hoping the stock will turn around tomorrow. With this trade I am hoping that my inverse strategy will ultimately work as well. If the stock moves up a little in the morning I am going to cover the short contracts and double on the long ones.
I have an overall bullish bias for tomorrow (I think the mkt has declined a lot in the last two days and should rebound tomorrow or Monday, as it usually does). With this thought in the back of my mind, I bought some GOOG calls near the close of the day. I also protected the position by selling some OTM calls against it.
Soon after buying the calls I felt like I had jump too quick on this, may be I should have waited for another day or two to see which way GOOG moves and then apply my inverse strategy.
MA has been on a decline as well. It closed down -$12. I am still holding to both of my long and short call contracts, hoping the stock will turn around tomorrow. With this trade I am hoping that my inverse strategy will ultimately work as well. If the stock moves up a little in the morning I am going to cover the short contracts and double on the long ones.
I have an overall bullish bias for tomorrow (I think the mkt has declined a lot in the last two days and should rebound tomorrow or Monday, as it usually does). With this thought in the back of my mind, I bought some GOOG calls near the close of the day. I also protected the position by selling some OTM calls against it.
Soon after buying the calls I felt like I had jump too quick on this, may be I should have waited for another day or two to see which way GOOG moves and then apply my inverse strategy.
Dow drops 443as slump deepens
The Dow's 2-day loss is its worst since 1987. Big drops in retail sales and weak forecasts from Cisco Systems, Toyota and News Corp. signal a weak economy well into 2009. Crude oil drops below $61. Stocks to
Wall Street sinks on retail sales, Disney drops late
GOOG 331.22 -11.02 -3.22%
MA 143.30 -12.57 -8.06%
FSLR 143.60 -8.49 -5.58%
ISRG 174.36 -12.36 -6.62%
FXP 101.99 +14.99 +17.23%
VIX 63.68 +9.12 +16.72%
The Dow's 2-day loss is its worst since 1987. Big drops in retail sales and weak forecasts from Cisco Systems, Toyota and News Corp. signal a weak economy well into 2009. Crude oil drops below $61. Stocks to
Wall Street sinks on retail sales, Disney drops late
GOOG 331.22 -11.02 -3.22%
MA 143.30 -12.57 -8.06%
FSLR 143.60 -8.49 -5.58%
ISRG 174.36 -12.36 -6.62%
FXP 101.99 +14.99 +17.23%
VIX 63.68 +9.12 +16.72%
Wednesday, November 5, 2008
I sold the GOOG calls at a loss, instead I could have sold it at a good profit yesterday, but I did not. I was of a very bullish mind set yesterday. GOOG went down -$25 for the day. This morning when I saw the indexes down, I was really shocked and wanted to cut my loss as much as I can. First thing I wanted is to lighten up on the long side quickly.
MA has gone down -$14 today, the gains I had in the calls yesterday are gone. Near the end of the day sold 3 calls, against the 3 call contracts I am long, out of fear of further decline.
Adding to FSLR puts, doubling the position yesterday had really paid off today. The stock is down -$25, the puts has almost doubled in value. It has really saved my account today from a complete disaster. Although I was very hesitant of keeping the puts and, as I tried to sell them near the end of the day yesterday. I was disappointed in myself for holding on to the FSLR trade yet today I was proud. What has prevented me from holding on and until the puts ultimately worked as selling lower strike puts against it.
There are two lessons in the FSLR trade: going inverse, i.e., buying puts when the stock was moving higher. Selling lower strike contracts gives me hope, reducing my fear and helps in holding to the position until the stock turns around.
MA has gone down -$14 today, the gains I had in the calls yesterday are gone. Near the end of the day sold 3 calls, against the 3 call contracts I am long, out of fear of further decline.
Adding to FSLR puts, doubling the position yesterday had really paid off today. The stock is down -$25, the puts has almost doubled in value. It has really saved my account today from a complete disaster. Although I was very hesitant of keeping the puts and, as I tried to sell them near the end of the day yesterday. I was disappointed in myself for holding on to the FSLR trade yet today I was proud. What has prevented me from holding on and until the puts ultimately worked as selling lower strike puts against it.
There are two lessons in the FSLR trade: going inverse, i.e., buying puts when the stock was moving higher. Selling lower strike contracts gives me hope, reducing my fear and helps in holding to the position until the stock turns around.
what happened here?!
I had a very deep conviction yesterday that the bear mkt was over. The election was over. All the reasons for the stocks mkt to go down were not there any more. I strongly believed that the stocks will only be move higher and higher from now on. I even told my friends to buy as much stocks as they can, "the stock mkt will make a strong move higher" I said to a couple of friends last night, adding "put all the money you have into stocks right now!".
In my mind of minds I was calculating, multiplying my gains, the amount I will make on each position I have and what not. I even felt somewhat left out for not buying enough! The thought, that the mkt will be going up in one direction only from now on, seemed boring. I felt I would have nothing to do day in and day out.
The mkt will always surprise me.
In my mind of minds I was calculating, multiplying my gains, the amount I will make on each position I have and what not. I even felt somewhat left out for not buying enough! The thought, that the mkt will be going up in one direction only from now on, seemed boring. I felt I would have nothing to do day in and day out.
The mkt will always surprise me.
Tuesday, November 4, 2008
As per my 'hunch' GOOG went up $20 today. My calls play went well. It was very obvious that the stock mkt was going up today, as the uncertainity about the election will be over today. As for GOOG it has gone down alot form $550 --> $350 and it very natural that it will go backup.
FSLR is still a loosing trade for me, it keeps going up. Every time I think it has gone up enough it moves up more. It was up $15 today. As usual, for my inability to deal with loses, I added 3 more puts to my position doubling my current FSLR position. At the back of my head I am thinking that if the stock falls, I will quickly recoup my loss and even make some profit.
I bought MA calls for two reasons, it was up a lot in the morning $16 when I checked. The news MA has reported MasterCard shares soar on 3Q quarterly results. This report and the general bullish environment, yesterday and today, I thought the stock is very likely to go higher today. MA was up $26 by the close my calls almost doubled in value.
FSLR is still a loosing trade for me, it keeps going up. Every time I think it has gone up enough it moves up more. It was up $15 today. As usual, for my inability to deal with loses, I added 3 more puts to my position doubling my current FSLR position. At the back of my head I am thinking that if the stock falls, I will quickly recoup my loss and even make some profit.
I bought MA calls for two reasons, it was up a lot in the morning $16 when I checked. The news MA has reported MasterCard shares soar on 3Q quarterly results. This report and the general bullish environment, yesterday and today, I thought the stock is very likely to go higher today. MA was up $26 by the close my calls almost doubled in value.
Stocks surge on Election Day
Wall Street rises as end of election brings relief
World markets surge as America votes
Wall Street shrugs off weak economic news
Stocks that might win with Obama
VIX 47.73 -5.95 -11.08%
BIDU 234.62 +29.90 +14.61%
FSLR 177.52 +15.61 +9.64%
GOOG 366.94 +20.45 +5.90%
MA 170.24 +26.35 +18.31%
FXP 75.20 -10.80 -12.56%
Wall Street rises as end of election brings relief
World markets surge as America votes
Wall Street shrugs off weak economic news
Stocks that might win with Obama
VIX 47.73 -5.95 -11.08%
BIDU 234.62 +29.90 +14.61%
FSLR 177.52 +15.61 +9.64%
GOOG 366.94 +20.45 +5.90%
MA 170.24 +26.35 +18.31%
FXP 75.20 -10.80 -12.56%
Monday, November 3, 2008
As per my prediction GOOG did fell to almost -$17 at one point today but reversed and ended -$13 for the day. I sold my put for a profit and was happy with this trade. However, I bought 3 calls on GOOG using the same reverse strategy of buying calls when the stock is down and buying puts when it is up.
Although, I believe I hastened the move, the last trade worked because I waited for a few days after the stock has gone up and let it come down a little before buying puts. I also bought only one put the last time but this time I bought 3 calls. The reason I was being so bullish is that of the environment at the time. In two days the election will be over and everyone thinks there will be a rally after the election. I don't want to miss that rally.
FSLR trade has gone into a loss the stock was up $19 for the day. It seems to be unusually strong this time. I could not get out of the trade today, hoping the stock is fall soon but instead it kept moving up.
I am unwilling/unable to admit that I was wrong about FSLR and take a loss. I am still hopeful that the stock will go down tomorrow and I will recover my losses.
Although, I believe I hastened the move, the last trade worked because I waited for a few days after the stock has gone up and let it come down a little before buying puts. I also bought only one put the last time but this time I bought 3 calls. The reason I was being so bullish is that of the environment at the time. In two days the election will be over and everyone thinks there will be a rally after the election. I don't want to miss that rally.
FSLR trade has gone into a loss the stock was up $19 for the day. It seems to be unusually strong this time. I could not get out of the trade today, hoping the stock is fall soon but instead it kept moving up.
I am unwilling/unable to admit that I was wrong about FSLR and take a loss. I am still hopeful that the stock will go down tomorrow and I will recover my losses.
Friday, October 31, 2008
I sold the GS calls fearing the stock will keep declining and my calls will keep losing value. Keeping in mind what the financial stocks has been through, I thought It would be wise to take some profit then non at all.
The FSLR trade was a result of reading about a trade setup last night, in a book titled 'High Probability Trading'. This strategy is to fade a weak move. FSLR had moved $28 yesterday (Thursday Oct. 30). Looking at current mkt conditions, the weakness that is, I thought I should fade the FSLR upward move. My thinking was also complemented by FSLR's opening down. I bought puts in the early morning, imagining I had just caught the wave. Later in the day when the stock stop moving down, I sold some calls against my position to protect against a sudden upward move.
I bought 1 GOOG put just from gut feelings and observing the price movement today. Although, I had been waiting to buy puts on GOOG, since it last move higher, for the last week. My plan was to buy GOOG puts at a much lower price, i.e., if the stock moves higher even more. But watching the stock today turning around from +$12 to -$1, I could not resist and bought 1 put, thinking the stock has just turned around and will keep moving down further.
I did only buy 1 put, although I had a limit order for buying 3 put, but changed my mind at the last minute.
I also wanted to protect myself from a big upward move in FSLR by selling 3 OTM contracts.
The FSLR trade was a result of reading about a trade setup last night, in a book titled 'High Probability Trading'. This strategy is to fade a weak move. FSLR had moved $28 yesterday (Thursday Oct. 30). Looking at current mkt conditions, the weakness that is, I thought I should fade the FSLR upward move. My thinking was also complemented by FSLR's opening down. I bought puts in the early morning, imagining I had just caught the wave. Later in the day when the stock stop moving down, I sold some calls against my position to protect against a sudden upward move.
I bought 1 GOOG put just from gut feelings and observing the price movement today. Although, I had been waiting to buy puts on GOOG, since it last move higher, for the last week. My plan was to buy GOOG puts at a much lower price, i.e., if the stock moves higher even more. But watching the stock today turning around from +$12 to -$1, I could not resist and bought 1 put, thinking the stock has just turned around and will keep moving down further.
I did only buy 1 put, although I had a limit order for buying 3 put, but changed my mind at the last minute.
I also wanted to protect myself from a big upward move in FSLR by selling 3 OTM contracts.
Wednesday, October 29, 2008
strategic breaks
I have realized the need and the benefits of taking breaks from trading, or just monitoring the mkt in general. The rapid price movements, constant ups and down movements of the positions, activates certain parts of the brain (http://traderfeed.blogspot.com/2008/10/when-good-trading-leads-to-bad-trading.html). This interference with the brain leads to making bad decisions. In order to not strain those parts of the brain and allow myself to trade rationally, I need to take breaks from trading and the stock market.
It does not matter how good the opportunities may be (or may seem like) it is essential for my proper performance to take breaks from trading. I do find myself getting sucked into cycles. in order to stop that and break away from cycles, taking time out at regular intervals is a good tool.
Taking breaks will also install the discipline in me to not trade just for keeping my self busy or just enjoying the action. I will only trade when I see a good opportunity, based on my beliefs and observations.
At certain intervals, stocks does not move in any direction, it just stalls like everything else in life those are the times when traders are tested and those who are able to take breaks can avoid losses.
When I take a break and come back I feel like I have moved to another level like a student moving to a higher grade in school.
It does not matter how good the opportunities may be (or may seem like) it is essential for my proper performance to take breaks from trading. I do find myself getting sucked into cycles. in order to stop that and break away from cycles, taking time out at regular intervals is a good tool.
Taking breaks will also install the discipline in me to not trade just for keeping my self busy or just enjoying the action. I will only trade when I see a good opportunity, based on my beliefs and observations.
At certain intervals, stocks does not move in any direction, it just stalls like everything else in life those are the times when traders are tested and those who are able to take breaks can avoid losses.
When I take a break and come back I feel like I have moved to another level like a student moving to a higher grade in school.
Fed cuts rates 1/2 point, China also cuts
The U.S. Federal Reserve cut interest rates by half a percentage points on Wednesday, joining a new round of global cuts kicked off by China as policy-makers try to soften the world's economic downturn
Dow and S&P slip, Nasdaq sheds some gains after rate cut
Stocks turn higher after Fed rate cut
Dow and S&P slip as GE's outlook talk douses late rally
GOOG 358.00 -10.75 -2.92%
GS 97.66 +4.09 +4.37%
The U.S. Federal Reserve cut interest rates by half a percentage points on Wednesday, joining a new round of global cuts kicked off by China as policy-makers try to soften the world's economic downturn
Dow and S&P slip, Nasdaq sheds some gains after rate cut
Stocks turn higher after Fed rate cut
Dow and S&P slip as GE's outlook talk douses late rally
GOOG 358.00 -10.75 -2.92%
GS 97.66 +4.09 +4.37%
Tuesday, October 28, 2008
exciting day!
It was an exciting day today as the mkt went up 899 points after being down almost each day for the last two weeks. I could hardly contain my excitement in the morning. I saw some good gains, as the mkt was up, and I had predicted the mkt's direction correctly, from yesterday.
I did a quick trade in the morning, it made me feel good. But that only lasted for a few hrs. As soon as I sold the put, I was holding from yesterday, on the ETF (FXP), it reversed and I felt a great sense of achievement by selling right on time. But soon FXP continued on its earlier direction, moving down, twice as much as in the morning, when I sold my call.
My feelings of greatness soon disappeared and were replaced with the feelings of stupidity.
I also mis-traded GOOG. I had covered 2 calls that I was short of in the morning, and would have been very profitable, had I kept it that way, but after seeing some price action I bought them back fearing the stock was turning around soon. The call's price moved very high soon, turning my gain into a loss.
At one point I wanted to cancel my order to sell short the 2 calls but somehow the web-site was hung and I could not change the order. After I started another window the order was already executed. It could have been a real good day if I did not get carried away and placed that order in the 1st place. I will have to see how it plays out tomorrow.
I also bought some GS calls very close to the session's close. I noticed that it was the only stock on my list that was down for the day while all the other stocks were in very +ve territory. The rally also seemed to be getting stronger, the calls I bought proved to be a good decision so far.
I was very tense all day, every move made me edgy and anxious... the intensity is getting higher. As I need to recover from my losses form a few weeks, I am really intolerant to see any losses these days. when the day starts, I can hardly contain myself from trading. Most of the time the day before, I would tell myself that I will not trade tomorrow and leave things as is, but once the mkt is open, I forget my promise and start placing trade after another... usually ending up changing my gains into losses or sometimes just getting rid of my gains for the day.
I did a quick trade in the morning, it made me feel good. But that only lasted for a few hrs. As soon as I sold the put, I was holding from yesterday, on the ETF (FXP), it reversed and I felt a great sense of achievement by selling right on time. But soon FXP continued on its earlier direction, moving down, twice as much as in the morning, when I sold my call.
My feelings of greatness soon disappeared and were replaced with the feelings of stupidity.
I also mis-traded GOOG. I had covered 2 calls that I was short of in the morning, and would have been very profitable, had I kept it that way, but after seeing some price action I bought them back fearing the stock was turning around soon. The call's price moved very high soon, turning my gain into a loss.
At one point I wanted to cancel my order to sell short the 2 calls but somehow the web-site was hung and I could not change the order. After I started another window the order was already executed. It could have been a real good day if I did not get carried away and placed that order in the 1st place. I will have to see how it plays out tomorrow.
I also bought some GS calls very close to the session's close. I noticed that it was the only stock on my list that was down for the day while all the other stocks were in very +ve territory. The rally also seemed to be getting stronger, the calls I bought proved to be a good decision so far.
I was very tense all day, every move made me edgy and anxious... the intensity is getting higher. As I need to recover from my losses form a few weeks, I am really intolerant to see any losses these days. when the day starts, I can hardly contain myself from trading. Most of the time the day before, I would tell myself that I will not trade tomorrow and leave things as is, but once the mkt is open, I forget my promise and start placing trade after another... usually ending up changing my gains into losses or sometimes just getting rid of my gains for the day.
Market bets on steep rate cut as Fed meeting begins
Morgan Stanley, SocGen, Goldman fall on VW worry
Stocks rise amid global rebound
Asian and European markets rack up big gains; markets here make more modest gains after gloomy confidence and housing reports. Investors expect a rate cut tomorrow at the end of the Fed's two-day meeting. Whirlpool will cut jobs
Stocks soar, but can rally hold?
Traders fret that late selling will cut gains set off by a global rally. Consumer confidence plunges. Home prices are still tumbling, a new report says. Boeing jumps after a strike settlement. Crude oil moves lower again.
Bargain hunters drive sharp Wall Street rally
Stocks enjoy big rebound after sharp selloff
Morgan Stanley, SocGen, Goldman fall on VW worry
Stocks rise amid global rebound
Asian and European markets rack up big gains; markets here make more modest gains after gloomy confidence and housing reports. Investors expect a rate cut tomorrow at the end of the Fed's two-day meeting. Whirlpool will cut jobs
Stocks soar, but can rally hold?
Traders fret that late selling will cut gains set off by a global rally. Consumer confidence plunges. Home prices are still tumbling, a new report says. Boeing jumps after a strike settlement. Crude oil moves lower again.
Bargain hunters drive sharp Wall Street rally
Stocks enjoy big rebound after sharp selloff
Oil dips below $63 as demand trumps OPEC
GOOG 368.67 +39.18 +11.89%
BIDU 208.95 +29.95 +16.73%
MA 136.01 +9.66 +7.65%
FXP 118.70 -64.31 -35.14%
SKF 136.00 -41.99 -23.59%
Monday, October 27, 2008
anxiety in the mornings...
If I wake up late.. I feel as if I am going to miss that day... if I see my position down I blame myself for not being there at the moment... although it may or may not make any difference if I can get to opening or not.. it is just the feelings... I am usually anxious if I miss the opening.
If I do get to the open I feel like I am in control now.. as if I know what is going to happen. It the position is down, I tell myself it is my decision to let the stock go down (or go up for that matter) ... but if I come late and see the mkt already moved up or down, I am upset and anxious, as if I missed a critical part of the trade.
Usually it does not matter, if I can get up in the morning (mkt opening) or not because the mkt always, always fluctuate.
May be missing the morning is missing a vital part of the action involved in my type of trading? That makes me think that I may be trading stocks just for the action. Am I keeping this hobby to get myself occupied with something?
If I do get to the open I feel like I am in control now.. as if I know what is going to happen. It the position is down, I tell myself it is my decision to let the stock go down (or go up for that matter) ... but if I come late and see the mkt already moved up or down, I am upset and anxious, as if I missed a critical part of the trade.
Usually it does not matter, if I can get up in the morning (mkt opening) or not because the mkt always, always fluctuate.
May be missing the morning is missing a vital part of the action involved in my type of trading? That makes me think that I may be trading stocks just for the action. Am I keeping this hobby to get myself occupied with something?
Thursday, October 23, 2008
I am wishing for a quick turn around?
Although, I believe I made a better (thought full) trade today, I was still very impatient. I did not stick to my plan of buying only one contract and then waiting for sometime and adding more, instead I bought all at the same time. The bad part about today was that I promised myself yesterday that I will not trade today.. but I could not resist. My initial plan was to wait for a couple of days after buying the 1st contract and see the stock move before adding more contracts.
Over all I think I am looking for a quick turn around here. I get more intense at times when I see the stock moving away from me. I did not use to experience this type of intensity before my loss or the mkt turmoil for the last few weeks.
Today I almost tried to replicate my previous trade. Since that trade ended up being a success I wanted to do something similar.
I bought BIDU calls at a time when the stock has declined $38. My thinking behind this trade is that the stock has declined excessively, the calls have become cheaper as a result. Buying puts at this point could be more expensive as puts have been bought in higher numbers.
There is more opportunity for the stock to go higher then lower at this point.
Now I need to wait and be patient for this trade to work... just the way I did for the last trade. Initially the trade showed a loss then it reversed and moved my way.
In the morning all I want to see is my account value increase every minute otherwise I get upset.
Over all I think I am looking for a quick turn around here. I get more intense at times when I see the stock moving away from me. I did not use to experience this type of intensity before my loss or the mkt turmoil for the last few weeks.
Today I almost tried to replicate my previous trade. Since that trade ended up being a success I wanted to do something similar.
I bought BIDU calls at a time when the stock has declined $38. My thinking behind this trade is that the stock has declined excessively, the calls have become cheaper as a result. Buying puts at this point could be more expensive as puts have been bought in higher numbers.
There is more opportunity for the stock to go higher then lower at this point.
Now I need to wait and be patient for this trade to work... just the way I did for the last trade. Initially the trade showed a loss then it reversed and moved my way.
In the morning all I want to see is my account value increase every minute otherwise I get upset.
Tech weakness pulls market lower
Stocks slump in part because of Amazon.com's tepid forecast. Former Fed chief Greenspan admits an error on the economic crisis. Dow Chemical beats the Street. Goldman Sachs may cut jobs. Foreclosure filings jump.
Greenspan "shocked" at credit system breakdown
Stock futures fall as recession fears weigh
Bank stocks worldwide tumble
Dow up 172 in late-day buying
BIDU 212.54 -36.55 -14.67%
FSLR 124.74 -12.50 -9.11%
GS 108.58 -6.13 -5.34%
Stocks slump in part because of Amazon.com's tepid forecast. Former Fed chief Greenspan admits an error on the economic crisis. Dow Chemical beats the Street. Goldman Sachs may cut jobs. Foreclosure filings jump.
Greenspan "shocked" at credit system breakdown
Stock futures fall as recession fears weigh
Bank stocks worldwide tumble
Dow up 172 in late-day buying
BIDU 212.54 -36.55 -14.67%
FSLR 124.74 -12.50 -9.11%
GS 108.58 -6.13 -5.34%
Wednesday, October 22, 2008
a better trade vs a profitiable trade
Today was a different day. I felt, I made a better trade today then just making some money. After losing big last month I have been partly discouraged and dis- hearted. I have been feeling somewhat angry at myself for taking too much risk, worried, that I wont be able to re-coupe my losses.
On the other side losing also made me more shrewed and conservative. I changed my ways and carved out a different strategy, i.e., buying puts when they became cheaper (rather then just following my predictions stock's move).
Although I did monitor the stock and had an idea of which way the stock is more likely to move, I did the reverse of what I will usually do, i.e., go with the flow, instead this time I went with what I expected was future direction and the reverse of the present direction.
I was also more cautious and risk averse. I only bought one contract initially as oppose to buying as many as much money I had left in the account. I added two more contracts as the position started moving my way. Even when the stocks moved against me I kept holding my 1 contract and did not sell at a loss.
The main reason for the success of this trade was that I kept my position small enough to not arouse extreme emotions in me. Although, I did desperately wanted to succeed. Keeping the position small and then adding after, once the stock started moving my way, gave me extra confidence and patience.
At the end I feel as if this was a rather easy trade. Almost like I already knew what was going to happen. I was holding GOOG puts and did not sell it in panic even when they lost value.
Another point I have realized now is that my trades works only if I get at least two consecutive down or up days and if that does n0t happen my trade reverses.
On the other side losing also made me more shrewed and conservative. I changed my ways and carved out a different strategy, i.e., buying puts when they became cheaper (rather then just following my predictions stock's move).
Although I did monitor the stock and had an idea of which way the stock is more likely to move, I did the reverse of what I will usually do, i.e., go with the flow, instead this time I went with what I expected was future direction and the reverse of the present direction.
I was also more cautious and risk averse. I only bought one contract initially as oppose to buying as many as much money I had left in the account. I added two more contracts as the position started moving my way. Even when the stocks moved against me I kept holding my 1 contract and did not sell at a loss.
The main reason for the success of this trade was that I kept my position small enough to not arouse extreme emotions in me. Although, I did desperately wanted to succeed. Keeping the position small and then adding after, once the stock started moving my way, gave me extra confidence and patience.
At the end I feel as if this was a rather easy trade. Almost like I already knew what was going to happen. I was holding GOOG puts and did not sell it in panic even when they lost value.
Another point I have realized now is that my trades works only if I get at least two consecutive down or up days and if that does n0t happen my trade reverses.
Dow falls 514 as global worries grow
Amazon sees weak holiday sales, shares fall 14 percent
Wachovia reports $23.9 billion loss
Crisis reverberates from Hungary to Wall St.
VIX 69.65 +16.54 +31.14%
SKF 148.30 +16.10 +12.18%
GOOG 355.67 -7.08 -1.95%
ISRG 173.09 -7.13 -3.96%
AMZN 49.99 -0.24 -0.48% After Hours: 42.94 -7.05 / -14.10%
RIMM 48.65 -1.88 -3.71%
MA 140.93 -8.85 -5.91%
Amazon sees weak holiday sales, shares fall 14 percent
Wachovia reports $23.9 billion loss
Crisis reverberates from Hungary to Wall St.
VIX 69.65 +16.54 +31.14%
SKF 148.30 +16.10 +12.18%
GOOG 355.67 -7.08 -1.95%
ISRG 173.09 -7.13 -3.96%
AMZN 49.99 -0.24 -0.48% After Hours: 42.94 -7.05 / -14.10%
RIMM 48.65 -1.88 -3.71%
MA 140.93 -8.85 -5.91%
Tuesday, October 21, 2008
After Dow's loss,Apple wows Street
Apple's profits crush estimates; Yahoo will cut 10% of its work force. But the Dow falls 232 points on weak earnings overall and profit-taking. Caterpillar and DuPont miss forecasts. Kirk Kerkorian sells a big chunk of his Ford stake.Stocks to watch:
Apple profit surges, issues safe outlook
Apple's profits crush estimates; Yahoo will cut 10% of its work force. But the Dow falls 232 points on weak earnings overall and profit-taking. Caterpillar and DuPont miss forecasts. Kirk Kerkorian sells a big chunk of his Ford stake.Stocks to watch:
Apple profit surges, issues safe outlook
Friday, October 17, 2008
Dow off 127; have stocks bottomed?
Wall Street slips as recession worries nag
Oil rises $2 on OPEC and global markets
ISRG 189.13 -25.67 -11.95%
GOOG 372.54 +19.52 +5.53%
SKF 135.25 +5.25 +4.04%
Wall Street slips as recession worries nag
Oil rises $2 on OPEC and global markets
ISRG 189.13 -25.67 -11.95%
GOOG 372.54 +19.52 +5.53%
SKF 135.25 +5.25 +4.04%
Thursday, October 16, 2008
Dow up 401; oil drops below $70
Google defies economy to beat forecasts; shares rise
Banks borrow record $437.5 billion per day from Fed
Dow ends up 401 in another stunning U-turn
FXP 95.34 -19.64 -17.08%
GOOG 353.02 +13.85 +4.08%
After Hours: 389.99 +36.97 / +10.47%
ISRG 214.80 +24.68 +12.98%
BIDU 214.80 -12.40 -5.46%
After Hours: 243.50 +28.70 / +13.36%
FSLR 141.70 +18.18 +14.72%
After Hours: 146.10 +4.40 / +3.11%
Google defies economy to beat forecasts; shares rise
Banks borrow record $437.5 billion per day from Fed
Dow ends up 401 in another stunning U-turn
FXP 95.34 -19.64 -17.08%
GOOG 353.02 +13.85 +4.08%
After Hours: 389.99 +36.97 / +10.47%
ISRG 214.80 +24.68 +12.98%
BIDU 214.80 -12.40 -5.46%
After Hours: 243.50 +28.70 / +13.36%
FSLR 141.70 +18.18 +14.72%
After Hours: 146.10 +4.40 / +3.11%
Wednesday, October 15, 2008
Feelings of uncertainty…
Weather I am on a winning streak, or trying to recover from a loss, trying to get back in the game. I experience the same feelings, the same uncertainty about the unknowns of tomorrow and the outcome of my trade.
Recently, at one point, I was up a lot. I remember I had the same anxious feelings, as I have them right now after a loss. Essentially now as then I don’t know for certain what is going to happen tomorrow. The worries are the same, when the account was really up I was concerned weather I will be able to repeat the winning streak? I had a hard time containing my self from watching the market every minute of the day. Worried, as I am now, that I need to recoup my loss.
I now realize, that generally, after a loss you are in a better state of mind then you are in after a big gain! In a sense a loss helps me to stop trading for a while, and lets me forget worrying about my next move. At least, for a short time I don’t care. I an not watching my positions as vigorously. It gives me a moment to think about other things in life and I feel relaxed.
After a loss, I realize that trading stocks is not an easy task, and that may be I should nt be doing this. On the other hand a winning streak tells me that I can do this I should be doing more of this, pushing my self harder and harder, stressing myself and eventually taking bigger risks.
If only I could think the same way after a winning streak as I did after a loss, i.e., just stoping to trade for a while, thinking about other things in life, and trying to relax my mind, I probably could do much better with my trading.
Recently, at one point, I was up a lot. I remember I had the same anxious feelings, as I have them right now after a loss. Essentially now as then I don’t know for certain what is going to happen tomorrow. The worries are the same, when the account was really up I was concerned weather I will be able to repeat the winning streak? I had a hard time containing my self from watching the market every minute of the day. Worried, as I am now, that I need to recoup my loss.
I now realize, that generally, after a loss you are in a better state of mind then you are in after a big gain! In a sense a loss helps me to stop trading for a while, and lets me forget worrying about my next move. At least, for a short time I don’t care. I an not watching my positions as vigorously. It gives me a moment to think about other things in life and I feel relaxed.
After a loss, I realize that trading stocks is not an easy task, and that may be I should nt be doing this. On the other hand a winning streak tells me that I can do this I should be doing more of this, pushing my self harder and harder, stressing myself and eventually taking bigger risks.
If only I could think the same way after a winning streak as I did after a loss, i.e., just stoping to trade for a while, thinking about other things in life, and trying to relax my mind, I probably could do much better with my trading.
Resisting the urges...
Trading is not only watching the mkt and stock prices all the time and making buy and sell decisions. Waiting for the results, accessing your conviction and gut feeling is an essential part of trading. At times it is necessary that we don’t look at the price, the movements as it can (in the very short term) be going against us. That short move can shake us out of a good trade.
Watching the price action, can make you re-evaluate, change your decisions and alter your plans. Only to find out a day later that your earlier decisions were the best ones.
I for me, currently, I am convinced that GOOG will be down further in the next few day, my reasons.
It has moved up a lot $50 in a day (last Monday too fast) and is bound to correct itself.
The overall mkt made a drastic move that day, and will correct itself (which will have an effect on GOOG as well).
The company is reporting earnings tomorrow, i.e.,Thursday, from what I have seen, the last couple of times it reported, is that the stock goes much lower just before the earnings announcement. Which again points to my view that it should keep going down until the close tomorrow.
4. After buying puts on the stock yesterday, and again this morning, the stock has been moving downward, a proof my hypothesis is holding so far.
Although, I have a hypothesis and a strong conviction, I am afraid, that I will start looking up the price (which I usually do) and see the price go up, I will get out of my position, in panic and see the stock tank just after I sell my puts. So for now I am resisting these strong urges and am not following the stock’s movement.
For me lot depends on this GOOG trade’s outcome. Emotionally, I can hardly contain my self from watching stock price and taking action, but at the same time I realize that I need to wait and see and accept the outcome.
The little voice in my head could convince me of something I did not plan on doing. The bottom line is I have taken a position and should be ready to accept a gain or a loss without constantly clicking at the price tick by tick. So far today, I managed to not look at the price action and will force myself to do the same for the rest of the day. It will be difficult at times like this when the mkt is making big waves, but is very beneficial.
Watching the price action, can make you re-evaluate, change your decisions and alter your plans. Only to find out a day later that your earlier decisions were the best ones.
I for me, currently, I am convinced that GOOG will be down further in the next few day, my reasons.
It has moved up a lot $50 in a day (last Monday too fast) and is bound to correct itself.
The overall mkt made a drastic move that day, and will correct itself (which will have an effect on GOOG as well).
The company is reporting earnings tomorrow, i.e.,Thursday, from what I have seen, the last couple of times it reported, is that the stock goes much lower just before the earnings announcement. Which again points to my view that it should keep going down until the close tomorrow.
4. After buying puts on the stock yesterday, and again this morning, the stock has been moving downward, a proof my hypothesis is holding so far.
Although, I have a hypothesis and a strong conviction, I am afraid, that I will start looking up the price (which I usually do) and see the price go up, I will get out of my position, in panic and see the stock tank just after I sell my puts. So for now I am resisting these strong urges and am not following the stock’s movement.
For me lot depends on this GOOG trade’s outcome. Emotionally, I can hardly contain my self from watching stock price and taking action, but at the same time I realize that I need to wait and see and accept the outcome.
The little voice in my head could convince me of something I did not plan on doing. The bottom line is I have taken a position and should be ready to accept a gain or a loss without constantly clicking at the price tick by tick. So far today, I managed to not look at the price action and will force myself to do the same for the rest of the day. It will be difficult at times like this when the mkt is making big waves, but is very beneficial.
Dow drops 733 on economic fears
Dow plunges 733 as new data points to recession
Economic activity weak across U.S.: Fed Beige Book
Recession worry, data drag Wall Street lower
Bernanke says U.S. economy facing big threat
VIX 69.25 +14.12 +25.61%
SKF 135.50 +21.44 +18.80%
ISRG 190.12 -34.20 -15.25%
GOOG 339.17 -23.54 -6.49%
FSLR 123.52 -19.59 -13.69%
BIDU 227.20 -23.05 -9.21%
MA 153.55 -20.52 -11.79%
Dow plunges 733 as new data points to recession
Economic activity weak across U.S.: Fed Beige Book
Recession worry, data drag Wall Street lower
Bernanke says U.S. economy facing big threat
VIX 69.25 +14.12 +25.61%
SKF 135.50 +21.44 +18.80%
ISRG 190.12 -34.20 -15.25%
GOOG 339.17 -23.54 -6.49%
FSLR 123.52 -19.59 -13.69%
BIDU 227.20 -23.05 -9.21%
MA 153.55 -20.52 -11.79%
Tuesday, October 14, 2008
An emotional bubble...
After a set back in trading. I feel like I am in an emotional bubble. I need to remind myself to stop trading right now as it is not going to be very thought full and calculated moves. I am not going to be as patient as I should be. Every little move in a stock, that I usually can ignore, is making me edgy.
There is a lot of hope working behind the scenes also, hope that I can make it back quickly, as quickly I had lost it. All I need is just one good trade, just like the trade that took it away.
I am unable to stop myself from watching every move in the stocks, trying to listen to every news and read everything I can. Like something will suddenly change and my account will be full again.
My expectations for profits has changed also, if before I was content with $100 in profits now I want (and maybe need) a $1000 in profits, regardless of the situation of the trade.
It is easy to see a loss and say ok, but it is very difficult to accept it mentally and emotionally , walking away without any action. In reality you see a loss and you say to yourself ok no problem losses are a part of trading, but deep down you are planing to recover all the loss in one day with one swift trade. Taking one quick trade after another losing even more.
As today was one of those days where I could have made a good profit but because of the recent activity in my account and the stock mkt I am jumping every move. The fear factor has increased and I am reacting as fast and furious. Today I was holding both GOOG puts and calls which is a better strategy considering the GOOG’s earnings coming out on Thursday. The stock can sharply move either direction. But during the day I talk my self out of the call position at a loss when I saw the stock moving down. Just before that I had sold my puts fearing the stock in moving higher.
In fact, I could have made money in both of them for it was not my high expectation, and not just accepting normal profits. I had bought GOOG calls for $10, I entered a limit order for $21 (more then double the price) of course it did get a fill but I checked it did hit $18 before it fell back to $9 that is where I sold. Last night as I was entering limit order I was thinking of $15 (a reasonable gain) but the I talked myself out of it and the little voice in my head told me that I can make more.
There is a lot of hope working behind the scenes also, hope that I can make it back quickly, as quickly I had lost it. All I need is just one good trade, just like the trade that took it away.
I am unable to stop myself from watching every move in the stocks, trying to listen to every news and read everything I can. Like something will suddenly change and my account will be full again.
My expectations for profits has changed also, if before I was content with $100 in profits now I want (and maybe need) a $1000 in profits, regardless of the situation of the trade.
It is easy to see a loss and say ok, but it is very difficult to accept it mentally and emotionally , walking away without any action. In reality you see a loss and you say to yourself ok no problem losses are a part of trading, but deep down you are planing to recover all the loss in one day with one swift trade. Taking one quick trade after another losing even more.
As today was one of those days where I could have made a good profit but because of the recent activity in my account and the stock mkt I am jumping every move. The fear factor has increased and I am reacting as fast and furious. Today I was holding both GOOG puts and calls which is a better strategy considering the GOOG’s earnings coming out on Thursday. The stock can sharply move either direction. But during the day I talk my self out of the call position at a loss when I saw the stock moving down. Just before that I had sold my puts fearing the stock in moving higher.
In fact, I could have made money in both of them for it was not my high expectation, and not just accepting normal profits. I had bought GOOG calls for $10, I entered a limit order for $21 (more then double the price) of course it did get a fill but I checked it did hit $18 before it fell back to $9 that is where I sold. Last night as I was entering limit order I was thinking of $15 (a reasonable gain) but the I talked myself out of it and the little voice in my head told me that I can make more.
Monday, October 13, 2008
Taking huge losses
Today was the day when the mkt (DOW) was up 1000 points. I was holding puts on GOOG. I had bought those puts last Friday in fact I had bought too many, then I could afford. Once I take on too much risk, which I do realize soon after, I am unwilling to face the outcome. Under these situations I avoid looking at my account, I would not act to reduce my losses, I just pretend that the stock will turn around soon and everything will be ok.
The problem is that if I have experienced some event the day or week before I expect (or more like hope) that it is going to repeat. I end up basing today’s trade on yesterday’s mkt. But the mkt changes everyday.
Today I was holding GOOG puts bought friday. It has already lost 30% of value. I already was ‘regretful’ of buying too many contracts out of fear (trying to avg down). Over the weekend I had made up my mind to sell the puts as early as the mkt opens and reverse position but unfortunately I didn’t act on my thinking. As soon as I saw the position being down and saw a loss, I told myself to wait and see. It will soon turn around.
There was a little voice inside my head saying "the mkt will turn around soon just like it did last week" and that "VIX is at 60, the mkt is supposed to make big swings". So instead of selling the puts and loading up in calls I ended up buying more puts? Finally, near the end of the day I did buy some calls, but it was late, late enough to take advantage of the 1000 points move.
What I conclude is that I need to stick to my plan no matter how painful it may be to take a loss.
The problem is that if I have experienced some event the day or week before I expect (or more like hope) that it is going to repeat. I end up basing today’s trade on yesterday’s mkt. But the mkt changes everyday.
Today I was holding GOOG puts bought friday. It has already lost 30% of value. I already was ‘regretful’ of buying too many contracts out of fear (trying to avg down). Over the weekend I had made up my mind to sell the puts as early as the mkt opens and reverse position but unfortunately I didn’t act on my thinking. As soon as I saw the position being down and saw a loss, I told myself to wait and see. It will soon turn around.
There was a little voice inside my head saying "the mkt will turn around soon just like it did last week" and that "VIX is at 60, the mkt is supposed to make big swings". So instead of selling the puts and loading up in calls I ended up buying more puts? Finally, near the end of the day I did buy some calls, but it was late, late enough to take advantage of the 1000 points move.
What I conclude is that I need to stick to my plan no matter how painful it may be to take a loss.
Wall Street rises on bank rescues, Morgan
NEW YORK (Reuters) - Stocks rose on Monday as a push by governments around the world to pump money into the clogged banking system sparked relief among investors and credit markets showed signs of loosening up.
Stocks soar on bank-rescue plans\
Dow up 936on record day
BIDU 266.05 +52.30 +24.47%
GOOG 381.02 +49.02 +14.77%
GS 112.07 +23.27 +26.20%
SKF 123.85 -34.15 -21.61%
ISRG 212.34 +37.33 +21.33%
FSLR 142.98 +25.53 +21.74%
NEW YORK (Reuters) - Stocks rose on Monday as a push by governments around the world to pump money into the clogged banking system sparked relief among investors and credit markets showed signs of loosening up.
Stocks soar on bank-rescue plans\
Dow up 936on record day
BIDU 266.05 +52.30 +24.47%
GOOG 381.02 +49.02 +14.77%
GS 112.07 +23.27 +26.20%
SKF 123.85 -34.15 -21.61%
ISRG 212.34 +37.33 +21.33%
FSLR 142.98 +25.53 +21.74%
Friday, October 10, 2008
big moves in the mkt makes you do something
This morning I was done trading in the morning... making enough, achieving my goal/target for the day... (being satisfied if not very happy with what I did)... my trade was well enough.. I didnt need to trade any more... but there was a hidden desire/ambition/wish...
I wanted to have the ability to day-trade on Monday. I was short of $500 to achieve that goal. Recently, I have this view that if I can day-trade I can trade better... this deep desire, so I needed to make a trade ... I told my self just one trade.. so when Monday comes I can day-trade!?
I made a small trade buying only three contracts.. it would have been enough to get me the day-trade ability on Monday if it worked.... if not I would loose a little... not too much to heart me...
being successful in the morning trade made me somewhat overconfident... and in an enthusiastic mood... then the mkt was really moving today also ... VIX was 75... seeing the big moves in the mkt like today’s makes you do something. Something you did nt plan on doing?
After taking the 2nd trade, watching it go my way the overconfidence increased... ‘lets take another trade’ I told myself... and bought 3 more contracts a third trade... in short time the mkt turned around.. Reversing my trades especially the 3rd in and generally both of them...
Seeing a loss, my inherent weakness (unable to take a loss) kicked in, I tried to average down buying 3 more contracts of the same as the 3rd trade...
Now by the closing time all three trades were in a losing position, wiping out my earlier gains and then some...
The dilemma is I kept telling my self that I have to just take on risk if I want to make profits... in fact I already had a good enough profit for the day... and needed to be content with profit for the day... but I did nt..
Now that I think about it, it is essential to take risks as long as it is under control and not too big to cause regret if the position reverses.
I wanted to have the ability to day-trade on Monday. I was short of $500 to achieve that goal. Recently, I have this view that if I can day-trade I can trade better... this deep desire, so I needed to make a trade ... I told my self just one trade.. so when Monday comes I can day-trade!?
I made a small trade buying only three contracts.. it would have been enough to get me the day-trade ability on Monday if it worked.... if not I would loose a little... not too much to heart me...
being successful in the morning trade made me somewhat overconfident... and in an enthusiastic mood... then the mkt was really moving today also ... VIX was 75... seeing the big moves in the mkt like today’s makes you do something. Something you did nt plan on doing?
After taking the 2nd trade, watching it go my way the overconfidence increased... ‘lets take another trade’ I told myself... and bought 3 more contracts a third trade... in short time the mkt turned around.. Reversing my trades especially the 3rd in and generally both of them...
Seeing a loss, my inherent weakness (unable to take a loss) kicked in, I tried to average down buying 3 more contracts of the same as the 3rd trade...
Now by the closing time all three trades were in a losing position, wiping out my earlier gains and then some...
The dilemma is I kept telling my self that I have to just take on risk if I want to make profits... in fact I already had a good enough profit for the day... and needed to be content with profit for the day... but I did nt..
Now that I think about it, it is essential to take risks as long as it is under control and not too big to cause regret if the position reverses.
Thursday, October 9, 2008
Wednesday, October 8, 2008
My trading - random guesses?!
I never plan for losses?!
All my picks are random guesses, some of them work some don't...
the ones that work are the good ones...!
the one that don't work are the bad ones!
I only plan for the good ones... don't know how to deal with the bad ones?
When I see my position being down... or going down it makes me anxious... I am faced with an immediate decision to take action... sell or keep?
If the position is up (moving my way) I am relaxed not having to make an immediate decision... I can let it run and make the decision latter... hence no anxiety..
It has translated into "sell only when feeling uncomfortable?"
All my picks are random guesses, some of them work some don't...
the ones that work are the good ones...!
the one that don't work are the bad ones!
I only plan for the good ones... don't know how to deal with the bad ones?
When I see my position being down... or going down it makes me anxious... I am faced with an immediate decision to take action... sell or keep?
If the position is up (moving my way) I am relaxed not having to make an immediate decision... I can let it run and make the decision latter... hence no anxiety..
It has translated into "sell only when feeling uncomfortable?"
that is your profit... already celebrate
Today my account had day-trading ability.. so I day traded some GOOG calls (successfully that is) ...
my 1st day trade was successful but not the 2nd one...
I easily bought GOOG calls for $26 and sold it for $29 within a short period of time...
but I tried to do the same for BIDU calls but could not get my 'asking' price ... so I ended up holding the calls ...
that was the problem... the 1st trade being successful.. easy... I felt I could just duplicate that trade anywhere without any problem?...
initially the 2nd trade did start to work for a brief time, i.e., the stock did move higher and I could have taken a profit ... but since It did not hit my target price... I could nt sell and get out like the 1st trade...
I felt very frustrated because of that...
I could have been better off by taking the profits I made form the 1st trade and stop trading for the day...
the problem I face is that once I see an increase in the account one day ...
I tell myself "that is your profit... already celebrate it".
The next moment, however, come and it all changed I get disappointed ... disrupts your emotions...
I try hard to bring the account back to where it was yesterday.. it is due to this strong need to see the account as it was before...I push myself too much hard and take extra risks and as a result over-trade... and loose.
my 1st day trade was successful but not the 2nd one...
I easily bought GOOG calls for $26 and sold it for $29 within a short period of time...
but I tried to do the same for BIDU calls but could not get my 'asking' price ... so I ended up holding the calls ...
that was the problem... the 1st trade being successful.. easy... I felt I could just duplicate that trade anywhere without any problem?...
initially the 2nd trade did start to work for a brief time, i.e., the stock did move higher and I could have taken a profit ... but since It did not hit my target price... I could nt sell and get out like the 1st trade...
I felt very frustrated because of that...
I could have been better off by taking the profits I made form the 1st trade and stop trading for the day...
the problem I face is that once I see an increase in the account one day ...
I tell myself "that is your profit... already celebrate it".
The next moment, however, come and it all changed I get disappointed ... disrupts your emotions...
I try hard to bring the account back to where it was yesterday.. it is due to this strong need to see the account as it was before...I push myself too much hard and take extra risks and as a result over-trade... and loose.
MON:
BOT to Open 2 MON JQ MON Oct $85 CALL Executed $4.30
FSLR:
SLD to Close 4 HJQ VK HJQ Oct $155 PUT Executed $25.00
BOT to Close 2 HJQ VJ HJQ Oct $150 PUT Executed $32.00
BIDU:
BOT to Open 5 BDU JF BDU Oct $230 CALL Executed $13.10
GOOG:
SLD to Close 3 GGD JJ GGD Oct $350 CALL Executed $29.00
BOT to Open 3 GGD JJ GGD Oct $350 CALL Executed $27.30
SLD to Close 1 GGD VL GGD Oct $360 PUT Executed $35.20
BOT to Close 1 GGD VJ GGD Oct $350 PUT Executed $34.00
BOT to Open 2 MON JQ MON Oct $85 CALL Executed $4.30
FSLR:
SLD to Close 4 HJQ VK HJQ Oct $155 PUT Executed $25.00
BOT to Close 2 HJQ VJ HJQ Oct $150 PUT Executed $32.00
BIDU:
BOT to Open 5 BDU JF BDU Oct $230 CALL Executed $13.10
GOOG:
SLD to Close 3 GGD JJ GGD Oct $350 CALL Executed $29.00
BOT to Open 3 GGD JJ GGD Oct $350 CALL Executed $27.30
SLD to Close 1 GGD VL GGD Oct $360 PUT Executed $35.20
BOT to Close 1 GGD VJ GGD Oct $350 PUT Executed $34.00
Tuesday, October 7, 2008
I don’t mind looking and monitoring my positions when things are going my way...
what made the difference?... I lost a lot yesterday....but I was holding some positions from yesterday that I thought were going to workout today... and they did.
Today was different in a sense that I had prepared for it since yesterday. Both mentally and physically... I had taken some precaution and studied for it. I was looking at my positions at night and took mental notes... then ... I woke up at 5 in the morning which I normally never do.
I was monitoring the mkt an hr before the open.?
I heard some news at that time ... decided to take action immediately at the open... which in reality would not have mattered... since it did not gave me any advantage... but I was mentally more prepared and had relatively more confidence...
3. I also felt that I was more focused today.
In the morning I saw the DOW up 100 ... but started noticing that my stocks (GOOG, GS, BIDU) where actually down at that moment... I was holding puts on those and (as oppose to normal days).. I did not sell in panic but kept holding and even added more ....
Also the major reason was that:
4. the mkt kept moving in the same direction steadily, all day long, as oppose to yesterday when it turned around near the end of the day...
So I think the big reason for today’s success must have been the mkt's consistent move...
since I don’t mind looking and monitoring my positions when things are going my way... I was more focused!!
If the mkt had moved away or my positions had reversed I would not have paid as much attention as I did?
Today was different in a sense that I had prepared for it since yesterday. Both mentally and physically... I had taken some precaution and studied for it. I was looking at my positions at night and took mental notes... then ... I woke up at 5 in the morning which I normally never do.
I was monitoring the mkt an hr before the open.?
I heard some news at that time ... decided to take action immediately at the open... which in reality would not have mattered... since it did not gave me any advantage... but I was mentally more prepared and had relatively more confidence...
3. I also felt that I was more focused today.
In the morning I saw the DOW up 100 ... but started noticing that my stocks (GOOG, GS, BIDU) where actually down at that moment... I was holding puts on those and (as oppose to normal days).. I did not sell in panic but kept holding and even added more ....
Also the major reason was that:
4. the mkt kept moving in the same direction steadily, all day long, as oppose to yesterday when it turned around near the end of the day...
So I think the big reason for today’s success must have been the mkt's consistent move...
since I don’t mind looking and monitoring my positions when things are going my way... I was more focused!!
If the mkt had moved away or my positions had reversed I would not have paid as much attention as I did?
Dow tumbles as financial stocks sag
Morgan Stanley shares tumble amid deal speculation
Bernanke signals readiness to cut rates
Consumer credit marks first fall since January 1998
Panel not likely to call a recession soon
Fear pushes Dowdown 500 points
The Dow tumbles more than 5% despite a Fed move to free up short-term corporate credit. The Nasdaq loses more than 100 points and the S&P 500 drops below 1,000
Stocks sink as panic takes over
ISRG 184.26 -12.86 -6.52%
BIDU 214.44 -13.24 -5.82%
GOOG 346.01 -25.20 -6.79%
FSLR 128.00 -31.71 -19.85%
GS 115.00 -9.00 -7.26%
SKF 140.27 +19.72 +16.36%
Morgan Stanley shares tumble amid deal speculation
Bernanke signals readiness to cut rates
Consumer credit marks first fall since January 1998
Panel not likely to call a recession soon
Fear pushes Dowdown 500 points
The Dow tumbles more than 5% despite a Fed move to free up short-term corporate credit. The Nasdaq loses more than 100 points and the S&P 500 drops below 1,000
Stocks sink as panic takes over
ISRG 184.26 -12.86 -6.52%
BIDU 214.44 -13.24 -5.82%
GOOG 346.01 -25.20 -6.79%
FSLR 128.00 -31.71 -19.85%
GS 115.00 -9.00 -7.26%
SKF 140.27 +19.72 +16.36%
GOOG:
SLD to Open 1 GGD VJ GGD Oct $350 PUT Executed $27.00
BOT to Open 1 GGD VL GGD Oct $360 PUT Executed $26.80
SLD to Close 1 GGD VL GGD Oct $360 PUT Executed $30.00
FSLR:
BOT to Open 4 HJQ VK HJQ Oct $155 PUT Executed $24.00
SLD to Open 4 HJQ VJ HJQ Oct $150 PUT Executed $27.00
BIDU:
SLD to Close 3 BDU VD BDU Oct $220 PUT Executed $13.00
GS:SLD to Close 12 GS VT GS Oct $100 PUT Executed $5.00
SLD to Open 1 GGD VJ GGD Oct $350 PUT Executed $27.00
BOT to Open 1 GGD VL GGD Oct $360 PUT Executed $26.80
SLD to Close 1 GGD VL GGD Oct $360 PUT Executed $30.00
FSLR:
BOT to Open 4 HJQ VK HJQ Oct $155 PUT Executed $24.00
SLD to Open 4 HJQ VJ HJQ Oct $150 PUT Executed $27.00
BIDU:
SLD to Close 3 BDU VD BDU Oct $220 PUT Executed $13.00
GS:SLD to Close 12 GS VT GS Oct $100 PUT Executed $5.00
Monday, October 6, 2008
I freeze when things suddenly change.
that the market keeps going up -> up -> up -> up and DOWN...
and down -> down -> down -> down and UP... when its going up and up I keep going up and up with it ... mentally and emotionally But when it turns around I still keep going up and up... mentally and emotionally
I freeze.. When things suddenly change... my emotions are no longer in line with my actions...
if only I can remember and remind myself .. that the mkt will reverse soon ... and that I need to stop going along... for too long...
that it will soon return to where it was and I will be able to get another ride soon... What happens is that when the stocks are moving up I am happy and excited.... excited... excited...Suddenly when they turn around I am disappointed and saddened... almost angry... during this emotional time I cant make a quick decision... and just let my position go down... or I just stop watching the mrkt...I only like to keep watching a stock when it is moving my way... either moving up when I am long or going down when I am short.... when it is moving in the reverse direction I don't like to look at it... or do anything about it?
and down -> down -> down -> down and UP... when its going up and up I keep going up and up with it ... mentally and emotionally But when it turns around I still keep going up and up... mentally and emotionally
I freeze.. When things suddenly change... my emotions are no longer in line with my actions...
if only I can remember and remind myself .. that the mkt will reverse soon ... and that I need to stop going along... for too long...
that it will soon return to where it was and I will be able to get another ride soon... What happens is that when the stocks are moving up I am happy and excited.... excited... excited...Suddenly when they turn around I am disappointed and saddened... almost angry... during this emotional time I cant make a quick decision... and just let my position go down... or I just stop watching the mrkt...I only like to keep watching a stock when it is moving my way... either moving up when I am long or going down when I am short.... when it is moving in the reverse direction I don't like to look at it... or do anything about it?
Stocks plunge on financial fears
Wall Street tumbles amid global sell-off
Oil drops $5 to below $89 on demand concerns
VIX 52.05 +6.91 +15.31%
ISRG 197.12 -28.58 -12.66%
GOOG 371.21 -15.70 -4.06%
GS 124.00 -4.00 -3.13%
BIDU 227.68 +5.31 +2.39%
FSLR 159.71 -3.48 -2.13%
Wall Street tumbles amid global sell-off
Oil drops $5 to below $89 on demand concerns
VIX 52.05 +6.91 +15.31%
ISRG 197.12 -28.58 -12.66%
GOOG 371.21 -15.70 -4.06%
GS 124.00 -4.00 -3.13%
BIDU 227.68 +5.31 +2.39%
FSLR 159.71 -3.48 -2.13%
Friday, October 3, 2008
Dow drops 157despite bailout OK
Profit-taking and skepticism that the financial-rescue package will work combine to pull stocks lower. Wachovia decides to merge with Wells Fargo; Citigroup is seriously miffed
FSLR 163.19 -14.67 -8.25%
BIDU 222.37 -11.15 -4.77%
SKF 110.98 +8.98 +8.80%
Profit-taking and skepticism that the financial-rescue package will work combine to pull stocks lower. Wachovia decides to merge with Wells Fargo; Citigroup is seriously miffed
FSLR 163.19 -14.67 -8.25%
BIDU 222.37 -11.15 -4.77%
SKF 110.98 +8.98 +8.80%
meaningless trade!?
Today I did something unusual, instead of just buying the options (calls/puts) I bought 120 shares of BIDU.
Today was a big 'BAIL OUT' day and I was expecting the mkt to really go higher, since, the problem of 'Credit Crises' will be solved with this bail out...
So to act on my thinking I sold the GOOG put I was holding, early in the morning, thinking the mkt is going up a 1000 points...
Soon after I bought 60 shares of BIDU (having a good feeling) @ $240, soon the seeing the stock going down I added another 60 @ $234 ... as the stock keep moving down ... scared!... I bought 3 put contracts... just to save myself from further loss in the stock...
It was all built in my concious that the mkt is moving much higher today... and I need to jump in!
but the mkt after moving a little higher started moving lower... and ended much lower for the day... the news of the bailout succeeding was already built-into the price..
"Did anyone really think the market would sustain today's rally after the bailout vote was taken?? Ummm, wasn't the expectation of passage already built into the morning climb?? Ya think?? And didn't Monday's no-vote meltdown occur after the market was already down on the day (i.e. wasn't the initial cause of the drop)??"
Today was a big 'BAIL OUT' day and I was expecting the mkt to really go higher, since, the problem of 'Credit Crises' will be solved with this bail out...
So to act on my thinking I sold the GOOG put I was holding, early in the morning, thinking the mkt is going up a 1000 points...
Soon after I bought 60 shares of BIDU (having a good feeling) @ $240, soon the seeing the stock going down I added another 60 @ $234 ... as the stock keep moving down ... scared!... I bought 3 put contracts... just to save myself from further loss in the stock...
It was all built in my concious that the mkt is moving much higher today... and I need to jump in!
but the mkt after moving a little higher started moving lower... and ended much lower for the day... the news of the bailout succeeding was already built-into the price..
"Did anyone really think the market would sustain today's rally after the bailout vote was taken?? Ummm, wasn't the expectation of passage already built into the morning climb?? Ya think?? And didn't Monday's no-vote meltdown occur after the market was already down on the day (i.e. wasn't the initial cause of the drop)??"
Thursday, October 2, 2008
Stocks extend losses as factory orders tumble
Stocks tumble on economic worries
Oil falls 4 percent on economic, demand concerns
Furious lobbying for much-maligned bailout bill
Midday Glance: Telecom companies Midday Glance: Utilities companies
Midday Glance: Staffing companies Midday Glance: Specialty Retail companies
Some House 'no' votes turning to 'yes' on bailout
Dow falls 348 on economic worries
VIX 45.26 +5.45 +13.69%
AAPL 100.10 -9.02 -8.27%
POT 93.51 -34.53 -26.97%
CF 58.00 -30.64 -34.57%
AGU 41.61 -13.29 -24.21%
MA 160.13 -11.21 -6.54%
FSLR 177.86 -19.40 -9.83%
BIDU 233.52 -10.97 -4.49%
GOOG 390.49 -21.23 -5.16%
GS 131.54 -2.96 -2.20%
Stocks tumble on economic worries
Oil falls 4 percent on economic, demand concerns
Furious lobbying for much-maligned bailout bill
Midday Glance: Telecom companies Midday Glance: Utilities companies
Midday Glance: Staffing companies Midday Glance: Specialty Retail companies
Some House 'no' votes turning to 'yes' on bailout
Dow falls 348 on economic worries
VIX 45.26 +5.45 +13.69%
AAPL 100.10 -9.02 -8.27%
POT 93.51 -34.53 -26.97%
CF 58.00 -30.64 -34.57%
AGU 41.61 -13.29 -24.21%
MA 160.13 -11.21 -6.54%
FSLR 177.86 -19.40 -9.83%
BIDU 233.52 -10.97 -4.49%
GOOG 390.49 -21.23 -5.16%
GS 131.54 -2.96 -2.20%
Tuesday, September 30, 2008
Dow soars 485
Bush pushes bailout as bank crisis spreads
Nasdaq to cancel some late trades in Google shares
Volatile 3rd quarter for stocks ends on up note
GOOG 323.00 -58.00 -15.22%
SKF 100.99 -13.31 -11.64%
GS 128.00 +7.30 +6.05%
BIDU 248.23 +17.03 +7.37%
AAPL 113.66 +8.40 +7.98%
Bush pushes bailout as bank crisis spreads
Nasdaq to cancel some late trades in Google shares
Volatile 3rd quarter for stocks ends on up note
GOOG 323.00 -58.00 -15.22%
SKF 100.99 -13.31 -11.64%
GS 128.00 +7.30 +6.05%
BIDU 248.23 +17.03 +7.37%
AAPL 113.66 +8.40 +7.98%
Monday, September 29, 2008
Stocks tumble on 'no' vote
Apple tumbles on consumer spending concerns
National City drops 52 percent as market wonders who's next
Stocks tumble as bailout plan fails in House
House defeats $700B financial markets bailout
Oil sinks below $100 as US bailout plan voted down
Central banks redouble efforts to save bank system
Dow falls 500+ points as House rejects bailout
Bailout bill fails;stocks plunge
Dexia bank shares plunge 30 percent
Stunning defeat for economy bailout; stocks plunge
Dow drops 778 as bailout bill fails
Dow 10,365.45 -777.68 -6.98%
Nasdaq 1,983.73 -199.61 -9.14%
S&P 1,106.42 -106.85 -8.81%
$VIX.X 46.19 +11.4
SKF 114.30 +17.97 +18.65%
GOOG 381.00 -50.04 -11.61%
GS 120.70 -17.29 -12.53%
RIMM 61.73 -9.03 -12.76%
AAPL 105.26 -22.98 -17.92%
BIDU 231.20 -29.55 -11.33%
ISRG 251.40 -23.61 -8.59%
RTP 226.50 -44.50 -16.42%
FSLR 180.31 -26.82 -12.95%
Apple tumbles on consumer spending concerns
National City drops 52 percent as market wonders who's next
Stocks tumble as bailout plan fails in House
House defeats $700B financial markets bailout
Oil sinks below $100 as US bailout plan voted down
Central banks redouble efforts to save bank system
Dow falls 500+ points as House rejects bailout
Bailout bill fails;stocks plunge
Dexia bank shares plunge 30 percent
Stunning defeat for economy bailout; stocks plunge
Dow drops 778 as bailout bill fails
Dow 10,365.45 -777.68 -6.98%
Nasdaq 1,983.73 -199.61 -9.14%
S&P 1,106.42 -106.85 -8.81%
$VIX.X 46.19 +11.4
SKF 114.30 +17.97 +18.65%
GOOG 381.00 -50.04 -11.61%
GS 120.70 -17.29 -12.53%
RIMM 61.73 -9.03 -12.76%
AAPL 105.26 -22.98 -17.92%
BIDU 231.20 -29.55 -11.33%
ISRG 251.40 -23.61 -8.59%
RTP 226.50 -44.50 -16.42%
FSLR 180.31 -26.82 -12.95%
Sunday, September 28, 2008
once I loose the money ..
I find this is very interesting situation, again the same questions go through my mind all the time when I make money, will I be able to maintain this? what is next? should I be doing this full time? Is it worth it for me to spend time on the day job where I can't make as much money? I have found that this type of thinking does stays with me for a while and in fact it bothers me. Sometimes the constant thinking makes me trade excessively, and once I loose the money, I start thinking differently almost relaxed! The best way, for me, has been is to just stop trading... give myslef something else to think about, clear the mind. Until the feelings goes away, from the subconscious I cant trade well.
Friday, September 19, 2008
Stocks surge onmassive rescue
The market has its biggest two-day gain in 8 years
Dow up 369 as dramatic week ends
Extraordinary rescue effort spurs Wall Street rally
U.S. launches all-out attack on credit crisis
BIDU 289.75 -15.50 -5.08%
SKF 100.00 -15.44 -13.37%
GS 129.80 +21.80 +20.19%
ISRG 225.18 +16.65 +7.98%
FSLR 241.90 +18.51 +8.29%
RTP 314.90 +40.39 +14.71%
GOOG 449.15 +10.07 +2.29%
The market has its biggest two-day gain in 8 years
Dow up 369 as dramatic week ends
Extraordinary rescue effort spurs Wall Street rally
U.S. launches all-out attack on credit crisis
BIDU 289.75 -15.50 -5.08%
SKF 100.00 -15.44 -13.37%
GS 129.80 +21.80 +20.19%
ISRG 225.18 +16.65 +7.98%
FSLR 241.90 +18.51 +8.29%
RTP 314.90 +40.39 +14.71%
GOOG 449.15 +10.07 +2.29%
Wednesday, September 17, 2008
Rally erupts on rescue plan
The Dow jumps 410 points on news the government may create a vehicle to take over banks' bad debt. Crude oil is up slightly, and gold briefly tops $900.
Dow up 410 on bank rescue news
Stocks soar, Treasuries fall on US crisis plan talk
Wall St rallies on hopes of crisis solution
Paulson raised RTC-style concept with Congress: source
Central banks open taps to tackle market squeeze
GOOG 439.08 +24.59 +5.93%
MA 208.53 +12.53 +6.39%
AAPL 134.09 +6.26 +4.90%
GS 108.00 -6.50 -5.68%
SKF 115.44 -19.57 -14.50%
The Dow jumps 410 points on news the government may create a vehicle to take over banks' bad debt. Crude oil is up slightly, and gold briefly tops $900.
Dow up 410 on bank rescue news
Stocks soar, Treasuries fall on US crisis plan talk
Wall St rallies on hopes of crisis solution
Paulson raised RTC-style concept with Congress: source
Central banks open taps to tackle market squeeze
GOOG 439.08 +24.59 +5.93%
MA 208.53 +12.53 +6.39%
AAPL 134.09 +6.26 +4.90%
GS 108.00 -6.50 -5.68%
SKF 115.44 -19.57 -14.50%
MA:
BOT to Open 10 MAL ID MAL Sep $220 CALL Executed $0.90
GS:
SLD to Open 3 GS UB GS Sep $110 PUT Executed $6.65
BOT to Open 3 GS VT GS Oct $100 PUT Executed $14.75
SLD to Close 5 GS UA GS Sep $105 PUT Executed $10.00
SLD to Close 4 GS UT GS Sep $100 PUT Executed $7.20
SKF:
SLD to Close 3 SKF UU SKF Sep $130 PUT Executed $10.00
BOT to Close 3 SKF UR SKF Sep $125 PUT Executed $4.00
BOT to Open 10 MAL ID MAL Sep $220 CALL Executed $0.90
GS:
SLD to Open 3 GS UB GS Sep $110 PUT Executed $6.65
BOT to Open 3 GS VT GS Oct $100 PUT Executed $14.75
SLD to Close 5 GS UA GS Sep $105 PUT Executed $10.00
SLD to Close 4 GS UT GS Sep $100 PUT Executed $7.20
SKF:
SLD to Close 3 SKF UU SKF Sep $130 PUT Executed $10.00
BOT to Close 3 SKF UR SKF Sep $125 PUT Executed $4.00
Dow falls 449 as fear grips Wall St.
Stocks plunge despite the Fed's decision to lend insurer AIG up
Washington Mutual is for sale: sources
Banks rush to do deals as Wall St crisis deepens
Morgan Stanley, Goldman shars sink as fear spreads
Another nightmare on Wall Street: Dow down 450
Bloomberg warns of possible 'next wave' crisis
GOOG 414.49 -28.44 -6.42%
SKF 135.01 +16.99 +14.40%
BIDU 254.46 -12.03 -4.51%
GS 114.50 -18.51 -13.92%
AAPL 127.83 -12.05 -8.61%
MA 196.00 -18.81 -8.76%
X 90.20 -10.87 -10.75%
Stocks plunge despite the Fed's decision to lend insurer AIG up
Washington Mutual is for sale: sources
Banks rush to do deals as Wall St crisis deepens
Morgan Stanley, Goldman shars sink as fear spreads
Another nightmare on Wall Street: Dow down 450
Bloomberg warns of possible 'next wave' crisis
GOOG 414.49 -28.44 -6.42%
SKF 135.01 +16.99 +14.40%
BIDU 254.46 -12.03 -4.51%
GS 114.50 -18.51 -13.92%
AAPL 127.83 -12.05 -8.61%
MA 196.00 -18.81 -8.76%
X 90.20 -10.87 -10.75%
Tuesday, September 16, 2008
Dow up 142; Fed leaves rates alone
AIG shares drop on media report
Futures fall on report conservatorship eyed for AIG
SKF 118.02 -14.50 -10.94%
FSLR 214.65 +11.68 +5.75%
AIG shares drop on media report
Futures fall on report conservatorship eyed for AIG
SKF 118.02 -14.50 -10.94%
FSLR 214.65 +11.68 +5.75%
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