April 2013 Trading Performance

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This is the 3rd month we are reporting our options trading performance. After last month’s learning experience, April had some great trades, and not so great trades. We did, however, manage to get back on track where we left off in February.

In April, we roughly had a 70% win/loss ratio so that’s not too shabby at all. We had a 101% return, and hope to perform, if not outperform, April’s ROI this month.

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Below I’ll summarize some of the stupid mistakes I made in April:

Playing earnings

We had this in our Options Trading Rule – we absolutely do not trade earnings, yet I manage to open some AAPL puts a day before the earnings report.

AAPL gaped down pretty hard the next morning, however, because there is so much premium built into the option, plus the fact I picked a 380 strike, I was still out of the money on my option, and they of course just killed the premium right at open. I was immediately red on this trade.

Lessons Learned: Know when the companies are announcing earnings. I did this trade while on vacation and conveniently “forgot” to check the earnings calendar. Talk about stupid.

Fear of being left out

I see this all the time in our chatroom, traders asking what other people are trading, anxious to place their bets on the roulette table.

I forgot that cash is always a position, and a very safe position I might add.

Lessons Learned: Must remain calm, trade price, not opinions.

Summary

There are still 8 months left in 2013. 100%+ in options trading is very doable and you will see our Mastermind members do this day in and day out. The key is still managing risk so you can hold on to your profits. Remember, we are trading here, not gambling.

You can learn more about risk management, get real-time trade alerts, and join other elite options traders in our SRT Mastermind Group.

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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