This is a journal of my trading as I attempt a miracle and come back from losing most of my money. I only have $931.59 left at this moment in time. Not gonna lie....this may be a short lived thread. The plan is to outright buy calls/puts and then sell them for a profit (yea...). If anyone has any ideas on how to limit risk with such a small account, that would be helpful. The first couple trades will be extremely important to the success of this venture. In order for me to survive I need to net $250 a week or I won't be able to pay my bills. So $250 is my weekly target. That is more than 25% This journal will be good for me to look back on failed trades and such as I go. Of course if I lose my arse during this first week I'll be done trading for awhile. Trading will start Tuesday.
Today I entered into my first position, I've been buying CLF puts since the open basically, trying to get some nice prices and not buying all at once. So I ended up with 5 Sept. CLF $65 puts at an average price of $1.65 This will be a swing most likely at least into tomorrow.
Still holding 5 Sept. $65 Puts cost $1.65 currently @ $1.28. Not looking too good right now. Clearly I should have waited a little or added over a couple days while CLF formed its top. I'm also thinking I should have gone with October puts, seeing as this is a swing. The only reason I didn't was that it looked like it could be a nice one day swing, but that didn't happen. Added 1 Sept $75 FCX put cost $0.58 currently @ $0.62, because it looks overbought aswell.
Closed out my FCX put today for .78 for a gain of .20 which is a gain of about $12 (accounts for commissions). Quite a small gain, but I was all in at that point and wanted to get some cash. Though I still think FCX goes lower. Still holding the 5 CLF puts now trading @ 1.70 so it's about where I started...But this trade finally seems to be coming together, and I will close it tomorrow.
End of week 1: Account @ $929.21 ($-2.38) Not too good of a week. Sold 2 clf puts @ $2.00 and still holding the other 3. Definitely should have stuck to my plan and sold em all for $2.00. Hopefully next week will be better.