Trade The Journey

Trade The Journey

Trade Review for the Last three weeks

Welcome to the Trade Psychology review. I thought it might be worthwhile to review my most recent trades which were all losing trades. Looking at the charts, I completely misjudged the trend on each of these trades.

Ford: Two-week Call Option brought at $0.61 and sold at $0.48

Marathon Oil: Two-week Put brought at $0.74 and sold at $0.32

American Airlines: Two-week Put brought at $0.30 and sold at $0.21

Ford and American Airlines were two trades in which I was on the wrong side of the trend as evidenced by the charts. Although American Airlines could have been a big loser, I was able to close the trade before it became a serious problem. The other two trades weren’t played out much worse.

Each trade I believe had a moment where I knew the trade could be in danger. However, when your in the trade is much harder to recognize that an exit is the best possible strategy. I had reference levels set but there’s always a hope that the trade might recover.

Most of the time the trade doesn’t and you end up losing more than you intended. If there’s one skill I’d like to master in trading, it’s cutting my losses short. I feel that cutting my losses short would allow me to have a better profit/loss statement.

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