My very expensive put is now worth close to zero. You cannot tell what is going to happen in the market. I am done as a trader. From now on, I will focus on preserving capital and generating income......no bonds though.
Previously, I shorted at 191 then covered at 70. Then I went long at 65 and made some money. My past successes made me believe I know what I am doing.....NOT!
Looks a hard lesson learned but it's good for you that you have learned. Warren Buffet and Peter Lynch both said never invest on short term variation because NO ONE can predict short term variations.
I must say I almost bought put options but went with calls instead based on pure momentum. I would hold them and sell into profit taking. Better to take a loss for less than 100% instead of hoping for it to go down by expiry. I am selling my 1 contract of calls at open. I made 125% and am getting out quick no matter what.
You are extremely clear in your thinking, and that is what counts. I lost $50k last week on GOOG's ER and had to humble myself. I have had a mixed bag of good and bad calls. I have made some good money on my long positions and I have made decent money on short positions. I wiped out all of my YTD gains in two trades. One was the GOOG trade and the other was GLD a few months back when Gold lost over $120 an ounce in a single day. I have also made great pops on my NOK and sidestepping a catastrophe in my POT position.
The most important things is that you learn from your experience. I didn't learn from my first really bad experience about 7 years ago and that is what led me to repeat the error with GOOG. I had watched RIMM miss over and over again and went short into earnings. They blew the number out and I shorted even more to chase. It kept going up and I smoked. Needless to say I was right in the end, but moral victories don't equate to cash. What I have learned is that there is no right and wrong, just facts. It is crazy to see a company murder you and then claim that you were right, but all of the buyers were wrong. See the world as it is, not what it should be. This is the only reason I sat this one out today.The market is in love with MOMO's and we can't time when that will stop. Best of luck to you.
At least you are honest. I learned my lesson years ago. Don't ever short or go long on a stock with options. The M&M's will #$%$ all the time.
You either buy the stock or don't invest in it. NEVER ever buy or sell stock on margin.
Clear and Genuine story. Your RIMM story clicked my head to remember something I tried to forget. Like you, I had been watching RIMM sliding from time to time, and I shorted it right before reporting earnings. They blew the earnings and kept going higher and higher. Instead of getting out, I kept shorting hoping to average down. At the end, I got exhausted and became out of the game with a huge loss. As we all see, it is here now where nobody is talking about and nobody is wanting RIMM. At the time, I knew that it won't get anywhere and ends up like it is today, but what can you do?? You said it well, " moral victory doesn't equate to real cash."