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Lesson Learnt

dtc 27 July, 2008 21:54 Speculate, Trading Notes Permalink Trackbacks (0)

My post on 7/22/2008, “Be Patient” was meant to serve as a reminder to myself that I have to be patient. 
 

I wrote the post after I realized a quick trade to close 5 PRQTN @ 1.4 and miss the ride to 8.50 the next day!  The trade to close PRQTN was meant to switch my cash to FREJB, a more volatile option with a bigger swing.  The switch was meant for a quick gain and quick gain I got; I closed FREJB two days later and had a realized $400 in two trading days.  However, if I could be patient and wait out for the Costo earning call, I could have a gain of $3,550!  Anyhow, a lesson learnt.

trades between 7/21/2008 ~ 7/25/2008

Even after I wrote the post, I made another bad move on FREVB because I wasn’t patient enough and miss the ride on Thursday.  Be Patient!

 

So, by COB 7/25/2008.  I went back to where I started.  I was only $50 away from my goal of $1,000 in gain.  I lost two big rides and back to where I started!

Position at the end of 7/25/2008

Go into next week, I am short on cash and long 15 NJWIP.  I speculate that after Senate passed the housing bill on 7/26/2008.  I am betting on FNM will gain its ground and move north.  My plan going into next week is simple, just be patient!  I set the exit point for NJWIP @ 4.0 (my cost was 2.5 for all 15 contract) and I believe it’s reachable, maybe not this week but should happen within a month.  Let’s wait and see what next week bring.  

 

 

 

 



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