what did you dislike the most about trading options? Obviously the much more rapid loss of capital is probably near the top.
Honestly, I can't afford them. With my account size being as small as it is, the volatility of an option makes it difficult to manage risk properly. After all, one $2.80 option would equate to ~10% of my capital. The "rapid loss" of this $2.80 option can/did quickly deteriorate my account value. Although they donât suit my needs now, I would like to use options in the future and believe they can be a great tool for anyone with more capital.
30 SPY stopped out @ $135.03 I sold the 50 DRV today at $11.44 Journal starting capital = $2670 Current capital = $2680 Uploaded with ImageShack.us When I started this journal I had a bearish view on the economy. I still do. Among other things, I am worried about QE3 ending, the national debt, and the fragile condition of the US economy. Going forward, I will look to make other short attempts, as I believe there will be a correction. This does not mean that I will not buy in short time frames however.
Took a losing trade today⦠Terribly stupid of me, but it was a revenge trade spawned from my emotions relating to covering my shorts before yesterdays sell off. Bought 30 TNA @ 81.00 Sold 30 TNA @ 80.1104
My basis is $129.598 for a total of 80 SPY short. Screen shot is of the first 50 shares I sold short. Stop is todays high. Will probably sell everything by end of day Uploaded with ImageShack.us
Covered near end of day at @ $129.4598 Total net P&L: $8.02 Starting Capital = $2670 Current Capital = $2656
how much have you spent in commisions already? I recommend betting big and hope to accumulate a good bankroll. Looks like you're churning
Only $13 from the start of the journal on may 19. ... since the start of the year $250.15 I pay only 1$ for every 100 shares, which isn't bad for the size of my account. I want to start trading longer time-frames to avoid churning. The SPY short that I recently covered on May 31st was an attempt of this... unfortunately I was a bit early. Going forward through summer, you will see me trading mostly 60min chart, trend reversals (this is why I have not been trading much lately). I donât know exactly what you mean by betting big, as todayâs trade had me fully margined. I do not plan on blowing my account out any time soon with poor risk/reward trades. I appreciate the input.
Total Net P&L $22.22 Short 40 SPY @ 127.80 Short 40 SPY @ 128.07 Cover 80 SPY @ 127.62 1 minute SPY chart is posted. Uploaded with ImageShack.us Starting Capital = $2670 Current Capital = $2678