Losing 2 Grand That wasn’t yours

Don’t you hate it when you lose $2000 that wasn’t yours. Of course you do!

Okay, this is a trading scenario, so if this bores you… move along, move along, this is not post you were looking for.

Here’s how I lost $2000. Friday afternoon, I bought 2 First Solar (FSLR) “put options”, meaning that I anticipate First Solar to decrease in value. It’s a SELL high, BUY low kind of idea. The transaction was around $3380 or 66% of my account (not a wise inherent move). During the later part of the afternoon, I was down around -$300 and up +$300. Lots of movement that settled in at closing +$270.

So this morning, FSLR is going in the direction that I wanted to go. I was up +$600 at one point and then up +$270 another. TO protect my profit, I use a Stop-Loss order. The name says it all it (helps) Stop (my) Loss on a trade that goes bad.

So I set my stop and I got kicked out of my trade at around $3780, so that was $400 profit for me! YAY!

EXCEPT… that one instance where my trade got stopped was the last big up movement before the stock started to fall.

080310fslr

SO it’s NOT $2000 out of my pocket. It’s $2000 that COULD have been in my pocket.

But I still made a 12% in roughly 6 hours of trading…

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About planet3rry

Marathoner, A Terry of all trades
This entry was posted in Trading and tagged . Bookmark the permalink.

0 Responses to Losing 2 Grand That wasn’t yours

  1. Petra says:

    Not bad in this risky business – you’re on your way now!

  2. Pete says:

    That’s the problem with the speed of the market and not being able to watch it constantly like the pros. Best news is that you are in the green, and only lost opportunity money.

    • planet3rry says:

      Holy Celebrities Batman, You managed to leave a comment. THIS IS A BANNER DAY!!!!

      I lamented ALL afternoon, but tried to get too emotional about it. Worse thing is that I NEEDED a margarita that evening and the mexican restaurant only serve beer… OI!

  3. Susan says:

    Well I am impressed, nonetheless.

  4. Samantha says:

    Cash is cash! Could be more cash, but better than less cash!

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