I have opened a very small account to trade and learn about options. The big picture: when I retire I will cash out lump sum and start a second career as a day trader in stocks and options. I have 10 years left to retirement eligibility so I should l learn much. I started with ~ $825.
My intention is to swing basic trade positions in highly liquid options using S/R parameters until I have enough to make more complex trades .
My first trade was a really bad entry in INTC. I missed a 7 day run up that started from feb. 5 ,2010 and stalled sideways on feb 17.
I thought the sideways action will soon break into a continuance of the previous trend in the following days so I bought 6 call contracts. It seemed as soon as I bought everything tanked. I should have waited for the larger pull back that occured which would have netted me 2x as much as i got in the end.
Net gain: ~ $12.-- OUCH! Commissions!! :eek:
balance : $837.49
My intention is to swing basic trade positions in highly liquid options using S/R parameters until I have enough to make more complex trades .
My first trade was a really bad entry in INTC. I missed a 7 day run up that started from feb. 5 ,2010 and stalled sideways on feb 17.
I thought the sideways action will soon break into a continuance of the previous trend in the following days so I bought 6 call contracts. It seemed as soon as I bought everything tanked. I should have waited for the larger pull back that occured which would have netted me 2x as much as i got in the end.
Net gain: ~ $12.-- OUCH! Commissions!! :eek:
balance : $837.49
I was so sure there would be a downside correction so I closed with intention of getting in at a lower level. The move was as stupid as buying puts on the bullishness in the underlying. Never again.
If only had I conviction when I drew the trendlines maybe I could have made something of it.