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.
