Thursday, July 21, 2005

2 Months Profit lost in 2 days

I closed out the INTC and STX trades today. Yesterday, I was proud of myself for not selling into the early lows for the day. The stocks recovered later in the day, so I decided to let another day go by before closing them. That was a bad choice in retrospect. The stocks were both down more today, especially STX. This fiasco represents a loss of almost 2 months profits in 2 days. I need to refocus on what has worked for me, and shrink my trade size. The VIX was up a fair amount today. Maybe it will be time to start selling puts again soon. I am nervous about selling options short. It seems like it has become such a popular strategy now-a-days. It has been too long since anyone famous has blown up, selling options. I would feel more confident if my tools were finished. I did finish up the real-time put worksheet that I started (and came close to finishing) over the 4th of July weekend. It is usable now, but still has a few kinks. (I will post screen-shots, once I figure out a good way to host the images.)

One thing is for sure: I will not be listening to Cramer on anymore short term trades. I think he may be too visible now to make effective short-term calls. I'm still happy with the long-term picks he has gotten me into. (Especially SHLD!)

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