One of the reasons I never take off early on Fridays is that a lot of weird things can happen Friday afternoons.
I just got long a 1 lot of mgc at 1320.80 and bought 3 Oct. $25 Slw calls for 1.30.
Last night and yesterday I went and reviewed what my mistakes had been the last week and a half to cause me to take the hit I took and I concluded that my mistake wasn't in trying to catch swings in gold, as some times it takes me a few tries to get it right, but it was holding on to the mgc position for too long after I had turned bearish on the market. I had delusions of big money and holding that 2 lot through a downswing and then being able to pyramid it into a huge winner. Instead, I should have dumped it and just taken small pecks at gold like I normally do when trying to establish a position. Today, all day I worked on my plan and recommitted to what makes me profitable.
With that in mind, I feel very good about both of these trades and that the market is comfortable taking longs home into the weekend. Obviously I could be wrong but I'm confident I'm not making this trade emotionally as according to my plan it's a very solid entry. The size is small enough as not to worry about it. Bottom line is, when you swing trade don't try to become a position trader. Lesson learned.
