POT, GOOG, Trading Coach

Got my personal taxes done for 2007, filed. Even if you have a CPA or someone else do it, it's always good to review things to see if they were missed and ask questions. An error my CPA made would've cost me thousands in taxes, but I caught it before it was mailed out. I'm not real tax savvy, but a simple thing like filing statuses of different people makes a huge difference.

I missed some really good moves on POT because I was focused on the money in my account rather than drop the fear and just trade. Plus, my sleep has been further impeded. Sleep is probably one of the biggest things of mastering in my life. Without good quality sleep and enough of it nightly, my decisions in things whether it be trading or otherwise are skewed.

Though I was able to profits off the table yesterday, I left a great deal on the table because of remembering from a past experience with BIDU that was very costly, I allowed that to prevent me from profiting more in this trade. I took a very small position on this of only one way OTM contract, as now I'm doing a real funded $200 account to see if I could get that to what some of my practice $200 accounts have been able to do.

I've never traded with that small of an account and there are some psychological things here to deal with. Plus, taking into account my own financial stuff, that's a great deal of pressure. By the open of yesterday, I grew the $200 to $300. This account could've been over 500% today just trading POT, but I was petrified and just watched it move, even though I said outloud, this would be a good time to get into a Call. This would be a good time to get into a Put. Both time were right on the money, but I just watched it do that and did nothing.

Yesterday the stock gapped up quite a bit for POT. I took profits within the first 5 min. I saw it retracing and could've jumped back in for 1 contract to minimize my risk and that position, as I watched, increased by more than 500% for the day. Wow!!! I did do it in my practice account, just not real. Hmmmm....

I knew GOOG had earnings and a $50-70 strangle, of one contract would've been very cheap at less than $100 to get in. After hours, it's trading $76 above the close. Taking a Apr510C @ 0.50 at close would be at open at least $16 for that option and the Apr380P @ 0.50 would've been a $110.95 strangle for me. The return would've been about 1342% upon open, if it opens at $526. If there is a slight further run up, that's even better. Grab your profits, and if it heads down, go down with it and get out when it starts to head back up. Then you can reverse your position.

Sounds so simple, no? It is if you can do this all very mechanically.

GOOG might even try to make a run up to $537. Though I am not in for the strangle, if it attempts to go to $537, I could get in at open if it's heading up. If it heads down, I could jump in for that. I only have the first 1.25 hrs to trade tomorrow at the beginning, so let's see if I can contain my emotions and trade well.

------------------------------

TRADING COACH
As a side note, I will be taking on a new trading coach for the next 3 months to help me refine my trading, get a hold of my emotions, and help me to trade better, be more organized. One of the things identified is that I need more consistency in my documentation and trading plan. Stop keeping things in my head.

I had been very meticulous earlier with my documentation, but had slacked off due to one of my trading friends who makes millions who does not keep a trading journal. For some reason, in my head, I thought I could do similar. Wrong. Back to the trading journal and to figure out how to have a better one than will give me enough information without being so challenging to do that I won't do it for long. Keep it simple, succinct and powerfully informational.

Also, when I got more into daytrading, I thought it was just too challenging to keep a journal. Yes, I record my entries & exits, but what I need to provide are some charts annotated with my learnings of things I did well or not. When I pick apart my trades, I'm able to more effectively drill those learnings into my brain.

My trading coach makes millions and why should I reinvent the wheel.

My short-term goal is to trade futures and to be able to consistently every single day make $200-300/day. When I master that, then I will increase that by $100/day. Need to get rid of some bad habits, get my sleep under control, as well as my emotions. There are always going to be "things" in one's life, so I need to master interference. I WILL master interferences in my life. I MASTER interferences in my life.
0 Responses

Amazon Store