Hey all,
sometimes when trading a little luck can go a long way. Today's exit on USO is a great example. As readers will recall, I entered a second short trade late yesterday on what looked like a well defined bear flag formation in the crude oil market. Indeed the signal was correct and the target of $29.30 was hit almost right on the open early this AM. Unfortunately, sometimes life doesn't agree with the market. Specifically, I had a horrible sleep last night and didn't get to my trading-post until 8AM (pst). The target had been hit (the option I bought for $1.13 hit a high of $1.41) and then it reversed. While I could have dumped the position at cost, the chart was a 'V' bottom off the lows, so I decided to hold off and see if we would get a test of the lows through the trading day.
That test did come (with an hour before the close) and I liquidated the position at a small profit. Patients paid off here and I was able to turn a mistake (sleeping in) into a non-problem. Yes, I could have made a lot more money had I been awake but sometimes life hands you lemons and you just have to try and make lemonade. Today I was able to do so and so that is exactly what I did.
Here then is the exit chart with appropriate notes:
That's all for this post,
Brian Beamish FCSI
the_rational_investor@yahoo.com
All appropriate disclaimers apply, DO NOT risk capital in options trading that you cannot afford to lose.
No comments:
Post a Comment