What Is Wrong With My Head? I Allowed a $11,000 Gain to turn in to a $16,000 Loss?

J

JesseJamesFinn

I was trading the options I swore I would never trade with. My NGLS kinda bummed me out, I thought I had made a easy $23,000 but that in itself is stupidity, nothing come's free in the Market.



Originally I destroyed my account in 2004 trading Options with Two Days left and Close to the money. I had one Option Trade up $160,000 gain and I got addicted like free heroin to a Junkie!


It was my friend who decided I needed to get away from being a Market Maker in Pink Sheet, BB Stocks and stocks under $3.00. That's all I traded and made $2,000,000 from 2001 to Early 2004. That's when I started trading Options not in the money, little time left because I was chasing Rumor Stocks. This costed me $450,000 and it took about a year and a half to make it back and I suffered from the P.T.S.D and Stage Fright! I was terrified to make a trade for months, I sat with my remaining cash doing Paper Trades.




I am having a decent year, Today brought back the pains of 2004 by trading stocks that were expiring today. Maybe my NGLS bugged me a bit but all my Petro stocks kicked ass, I threw away the entire gains on those stocks I was trading.



Options deep in the money, with lots of research have treated me well, why in the Hell did I get involved with these poisonous stocks. Why do we do this to ourselves, I thought I had killed that part of my brain by reading books and seeking professional trading help. What would you do?
 
You had time yesterday before the close to sell half your Calls on NGLS and TRGP.

You got greedy with one day left to expiration and they denied the rumor overnight. Tough break. Learn from it.

Good luck.
 
Bro, $2MM doesn't reach the min req to post on this site. Please take your penny-ante sh!t elsewhere.

Thanks,
The Management (not of ET)
 
Clubber, I had bought the contracts earlier in the day, I planned on holding them for a month or so. That's why I bought the September $70s, I was sitting on the pot from 15:57-16:03 EST.


My problem was I bought some stupid Calls that were up $13,000 today and I allowed that gain to turn in to a loss of $16,000.





NGLS was never considered as real money because I learned crazy things happen during the Market. I learned the hard way these types of gains often go away, when Emulex fell to $40s I bought 3000 shares and the stock fell to $38 and Nasdaq Halted the Stock. Some idiot hacked in to AP News wire and released some "accounting scandal", when Emulex fell from $130 to $45 I stepped up to the plate and bought the stock The stock opened back up at $120 and I thought I had made $200,000 but I was wrong. Nasdaq busted all those trades! It's happened several times to me.


In 2002 Knight Tri-Mark's stock broke down and I bought 5,000 shares at $2.00 and had ARCA bust my trade.


I had PMTC go from $5 to $13 and I sold at $11 using TRAC ECN Afterhours, Nasdaq broke that trade, I was up $25,000 or was I since the computers malfunction in each case.



Thank's for your advice, if I would have been in front of the computer I would have dumped the stock, I am usually not a greedy person. Your advise is taken and thanks for reading my cry baby post. I don't know why I thought I should get involved with Gangster Options, why?
 
NGLS has much less than 2 million shares traded on average each day.
This makes it very illiquid compared to other optionable stocks.
What a crazy move last 2 days.....that was a black swan event.
Get over it....it happens.
 
JesseJamesFinn said:
Clubber, I had bought the contracts earlier in the day, I planned on holding them for a month or so. That's why I bought the September $70s, I was sitting on the pot from 15:57-16:03 EST.


My problem was I bought some stupid Calls that were up $13,000 today and I allowed that gain to turn in to a loss of $16,000.





NGLS was never considered as real money because I learned crazy things happen during the Market. I learned the hard way these types of gains often go away, when Emulex fell to $40s I bought 3000 shares and the stock fell to $38 and Nasdaq Halted the Stock. Some idiot hacked in to AP News wire and released some "accounting scandal", when Emulex fell from $130 to $45 I stepped up to the plate and bought the stock The stock opened back up at $120 and I thought I had made $200,000 but I was wrong. Nasdaq busted all those trades! It's happened several times to me.


In 2002 Knight Tri-Mark's stock broke down and I bought 5,000 shares at $2.00 and had ARCA bust my trade.


I had PMTC go from $5 to $13 and I sold at $11 using TRAC ECN Afterhours, Nasdaq broke that trade, I was up $25,000 or was I since the computers malfunction in each case.



Thank's for your advice, if I would have been in front of the computer I would have dumped the stock, I am usually not a greedy person. Your advise is taken and thanks for reading my cry baby post. I don't know why I thought I should get involved with Gangster Options, why?
More...

Those are some good reminiscences. I remember that NITE trade pre-market. I probably got it less than 50cents, thinking even if they had filed for bankruptcy they should be trading higher than that, and closed it a few minutes later after more than doubling. Not surprised to see it cancelled. At least was glad they cancelled both entry/exit: I've heard horror stories, where the entry is cancelled but not the exit, and you end up being short a short at terribly low price as the price bounces back.

If the trade looks fishy, you'd better steer clear.
 
SysWizard, appreciate your advise too, I'am getting better right? Last year I had bought KS and POST Calls and you all helped me get away from option-able stocks doing only 200,000 shares a day. They are strange because the stock can be $4.40 in the money and your order at $4.1 can sit on the offer until another Trader shows up to take advantage of the situation. Your counsel is much appreciated, thank you!


Neke, you got NITE too, can you believe we are still in the game fighting it out against the Flash Boys? I think it sucks you stepped up to the plate when nobody was there. I recall the same thing happening in Oct 1987 when Nasdaq's Market Makers did not pick up the phone or provide a Bid.

In the case of Knight-Trimark and Emulex (Those Sellers did not have to sell, they could have waited until the dust settled!) we both provided liquidity with our risk capital and Nasdaq broke our trades. Do you think it's fair they can break trades like that? How come NASD, NYSE did not break all those trades Knight-Trimark blew up and Citadel came to the rescue? What's the difference between those computers errors vs the error on Emulex and Knight Tri-Mark?



I posted a article here, I think it was last year detailing the account of Prop Shop Trader who had access to tap the Firm's deep pockets. During the Flash Crash, some kid who knew his Blue Chip stocks was allowed to max out and buy near the bottom of that meltdown. He made seven figures off this trade, the firm made much more because of he provided a service when everyone else was scared!
 
Rule one in ANY business:
Never be a forced buyer or seller



- PIN risk is a sucker's game,but well done you for making $$$$ in the first place.
 
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