Tuesday, November 07, 2006

Where's the Undo Button?

Made two major screwups today. First one was a trade in NDAQ Dec06 40 calls:

The mistakes on this one were numerous and damaging.
1. I thought I could continue the success that I had with my highly profitable RIMM options trade, and that clearly is not a good reason to enter this trade.
2. There was actually no good technical reason to enter that trade on any timeframe, but I did not study the chart long enough beforehand to realize that.
3. Once I was in the trade, there was a warning to get out when the continuation candles did not show up, but I ignored that first warning.
4. Thoughts of hope started creeping into my mindset again.
5. Temporarily forgot that options can magnify my losses. Since I only mentioned this a couple days ago, my only explanation is that I got greedy. Again.

My other screw up involved another daytrade in TSX:MGA that I would also like to have back:
The mistake made here was pretty dumb:
Sold right at support because I just watching the ticker, and simply didn't pull up a chart before deciding to exit the trade. This mistake is so dumb that I wish I didn't have to post it to this trading journal.

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