WealthEsteem.org :: Psychology of the Deal

I haven’t noted a few trading attempts that didn’t come off recently. Mainly because I was too busy to write something that didn’t happen. With hindsight I think that was slack — trades that don’t come off are still an attempt to trade.

As BHP fell to $9.07 (1 April) I put a buy order to close my BHP April 9.73 calls. I bid $0.02 but they found support at $0.03 (remember I’m buying so it didn’t reach my offer).

My broker called me Monday (7 April) to regret not getting out at $0.03 (April calls have been firming since). I was a little frustrated, my strategy allowed me to pay $0.03. If I’d closed out I could have written a new call for $0.20-$0.30 premium. I wasn’t too fussed as I’m still in profit.

Today BHP April 9.73 calls closed at $0.05, so I think they’ll expire worthless. Sure I missed an opportunity to trade and gain about $0.25 before commissions. However thou shalt not overtrade has been tatooed under my eyelids.