Friday, September 19, 2008

What a day in the market!!!!

Up $285 on the month or 5.7% Reducing my all time losses to -$4327

They say if you don't learn from your mistakes you are destined to repeat them. That is what my trades look like in one of the wildest rides the market has seen in 7 years.I watched the Dow swing 1100 pts in a 24 hour period and the SEC ban short selling until OCT 1st due to the sellers trying to knock the bottom out of the market.
My trades, My trades,My trades. Well this was my plan, when I entered the RIMM position I held half my account in cash so if the stock went against me I could buy in at the lower price. I am so sure the stock is a buy that is a sound plan. Well I jumped the gun when the stock went up 10% then back to my same entry point. So this is what I bought.

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 59764393
Symbol: .RULLS
Description: RIMM DEC 95 Call
Stock: RIMM at 100.15
Action: Bought To Open
Quantity: 1 contract(s)
Price: $16.45
Commission: $14.95
Reg Fees: $0.00
Net Amt: $1,659.95

Which I then sold for a loss $109.00

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 60047804
Symbol: .RULLS
Description: RIMM DEC 95 Call
Stock: RIMM at 98.18
Action: Sold To Close
Quantity: 1 contract(s)
Price: $15.75
Commission: $14.95
Reg Fees: $0.01
Net Amt: $1,560.04

So at this point I was just glad to be out of the trade considering I was down interday around $550 So once I sold this my outlook on the market had changed so i figured I better close all positions and stick to cash.
I sold the original position for a gain of $410

Account Number: xxxx-8709 - William G Ripley and Danijela Obradovic [JTWROS]
Order Number: 60100910
Symbol: .RFYLX
Description: RIMM DEC 85 Call
Stock: RIMM at 104.87
Action: Sold To Close
Quantity: 1 contract(s)
Price: $26.00
Commission: $14.95
Reg Fees: $0.02
Net Amt: $2,585.03

You can tell from the candlestick chart when you buy at $100 $89 does not look so good. The lesson learned is stick to a plan and always protect the down side.

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