Tuesday, September 16, 2014

Learning to Walk...

The September 12 Weekend Review went over six new trades. Read that for details regarding set ups.

I liked the price action in almost every stock on Monday, and came in this morning for GILD as it opened under 100, which has acted like a trampoline of support the last two times it's printed under 100. Good decision!

Everything pretty much went according to plan, but a heck of a lot sooner than I had anticipated!

Here were the trades, all closed today:

Z: -3 115/120 SEP14 put @ 1.40, closed 0.50  profit = $270 +64%
XOM: +5 95/97.5 OCT14 call @ 0.98, closed 1.74  profit = $380 +78%
HD: +4 87.5/90 OCT14 call @ 1.25, closed 1.76  profit = $204 +41%
GILD +4 100/105 OCT14 call @ 1.65, closed 2.90  profit = $500 +76%

Total profit = $1354 in less than two days, holy cow!

This same thing was happening earlier this year. When I got back into trading after my lengthy hospital stay, I was on a very profitable hot streak. However, I took a lot more risk than I am now... cooling off a bit. I was given an excellent opportunity to short the "Great Momo Crash of 2014" that occured this past April, so why not take a little extra risk?

Since I started using the new brokerage platform, total profit has been $4,830.67 on $20,000 of capital. That's a Return on Capital (ROC) of 24.15% since June 25. So even despite the huge winning streak I had earlier this year, I have done very well!

A wise man (Aileron) once said, the trading learning curve looks something like this:

crawl... walk... run

And I'm just learning to walk.

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