I don't normally trade a lot of stock, and when I do I don't always update every move with a blog post. Mainly because 90% of my trades are option spreads which have accounted for 82% of my profits this year.
But this week is a bit different. I've been/still am long some positions I want to update. First off, going into the week I was long DDD, FB, KO and short MO. Now the KO position never changes. The only thing I do with KO is sell calls against it.
So lets talk FB, MO, DDD and a new long I opened today...
Starting with FB... A few weeks ago I bought 100 shares of FB with the intention of riding this bad boy to at least $70. Well, back on Tuesday when the stock was trading OVER $67 I put in a stop right above my cost average of $65.31. You know the rest, the dang thing came crashing back down taking out my stop! I was so PISSED! Especially as I watched FB continue to climb the rest of the week. I know this sounds stupid, but I HATE STOPS - and this is why!!! Look, I get that we need them, but crap folks that sucked!
Same thing happened to me in MO. I've lost a ton of money trying to call a top in this thing using credit call spreads. However, this stock has been WAY overdue for a pullback. So I went short 100 shares at $42.70. Man this trade was working PERFECT! That is until I put in a stop too damn tight and got knocked out of the trade at $42.40.
So as you can see I left quite a bit of money on the table this week! But no excuses people - this was poor execution on my part.
DDD is a different story, my long position is doing well. We closed above $59 today - I'm in @ $55. This one is tough for me though - should I sell all at $60 or ride this one higher? Other than letting my losers run, my biggest shortcoming as a trader is CUTTING my winners short. I do it all the time! I can't tell you how much money I've left on the table this year! So I REALLY want to avoid cutting this winner short. DDD has the potential to move a lot higher, but "potential" and reality are two different things.
And finally... I opened up a new long position in WFM today. I bought 100 shares at $38.81. I'm looking for a short term move back above $42. When I get that move I'm out!
Well folks, you're all caught up! For a look at all my positions - stocks and option plays, click here!