March 2013 Trading Performance

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Today is the 2nd month I’m reporting my options trading performance. After last month’s stellar performance, March basically gave all the profits from last month back to the market.

If this were to be a management review, there is absolutely no excuse for the poor performance. I made some very serious mistakes and there are some important lessons learned here.

To summarize, these mistakes were made in March that has caused great loss:

Holding on to losers way too long!

The losing trades in Feb. were cut off quite quickly. In March, most notably SLV, AAPL, AMZN losing trades were held on for too long, causing greater than -50% loss on each of these positions.

The TSO calls were profitable, however, I left 5 runners that I also held way too long before cutting the runners lose, resulting in an almost net 0 trade.

Jumping back into the same option trade after exiting with profit!

This is a rookie mistake that I can’t seem to stop doing. I exited a trade in profit, that means I have successfully identified a break out or break down, entered the trade, and took profit by exiting.

I should re-evaluate the next entry point, or simply move on to another trade.

Go BIG!

Another rookie mistake – I went too big on the SLV calls. Now look at what happens. Don’t ever do that in your own trading!

Front running!

Most notably the MS puts trade placed on 3/26 – what was I thinking! Only enter a trade once the price has engaged (see Members Trading Room to find out what this is).

Summary

April is a whole new beginning, although I am going into April with old baggage from March. There is no doubt I will be managing risk, and in fact, I will be following a very strict trading plan, the Surefire Profits Options Trading (SPOT) plan.

You can find out what the SPOT plan is all about in the member’s area and how it is helping our members make a profit and keeping (just as important as making) their profits in options trading.

See you on the inside!

About Steven Chang

I bought my first stock in 1998 and lost all my lunch money on CSCO (traded my way up to $80/share and didn't know better to sell!) during the 2000 dot-com bubble. I've learnt a great deal about trading and hope to share that knowledge and lessons learned with you. Be sure to subscribe to SRT blog to get email notification whenever a new blog post is published. Join our SRT Mastermind Group to network with other elite traders to share trade setups and chart analysis.
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