Is this a good or bad trade?
- Thread starter 7out
- Start date
follow your trades and spread my run bad this year to others.
No. The lesson is don't wing it.
Whatever, it wasn't a wing. I would do it again. I'd be right there as well as more profitable more often on average. Just seems like I'm going through a bad streak lately.
Based on this one trade only, it seems you're too greedy. Take what the market gives you, unless you have an edge that tells you that you need to hold on longer. I don't really have an edge aside from price action. This gives me an "edge" for maybe the next few minutes to few hours. For the most part, NOT for days or weeks.
Indeed, signals and trade execution are two different things. It might be that your signals are great, but the trade execution on this particular trade was poor.
If I were you, I would have taken profit on the puts when NQ put in the reversal, because that's what you're supposed to do with covered options plays.
Honestly, never expected market to go down as much as it did that day. That, I agree was a stupid mistake on my part for not liquidating puts the second I unloaded the futures trade.
However, I did manage to squeeze out 75 points (3x25) from the puts when I sold 3 futures at 13350 near the end of day - figured I was protected both ways for the remaining half hour of trading.
I think you took the wrong lesson.
Your futures trade was fine, you should (probably) not have exited in the first place if you had covered puts, instead taken the profit on the puts there. Indeed, I went short when you exited your long!