Thursday, September 27, 2012

Are There "Lessons" While Trading?

OK, I've been disciplined for months now, basically layering selections of Jim Cramer from his charitable trust account.  But there's something about September that brings me down every year.  Something to do with the beautiful weather, I'm sure.

So last week I entered an option trade with 2 October 695 calls of AAPL @ 22 and something.  When it immediately turned south I "traded around" by selling 2 October 715 calls of AAPL @ 12 and something.  But I still was facing a $2000 max loss if things went south.

So, here's the lesson:

1.  Don't jump into option trading after a long time period.  You forget how you can be ripped to shreds without knowing how to get out of it.

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