Friday, May 29, 2009

god damn

was up 500 ducks on my excellent bottom of the day close of my overnight GS puts. then tinkered around all day playing the YM, as i was thinking right until the close, masterfully. up 1K, that's right, for the day on the YM, self congratulating and patting my back. entered for one last scalp, market spiked hard and then spiked like i have very rarely seen. over 100 points in the YM in over 5 minutes. it was so fast, before i thought of a level it was broached never to be reached again. i was short at 8400 and briefly i could have closed at 8425, but then 8440, 8460, 8480 and finally i just hit sell at 8490. it peaked at 8530 and settled at 8415. had i held on, i would have lost even more money. total loss on this one trade alone 1.8K, demolishing all hard earned profits for the day and putting me in the hole by 200 ducks.

i had a similar experience with a YM runup at close once before. but, as i recall that one wasn't as bad. i need more experience with the YM. things to consider, change number of contracts. not all trades need maximum leverage. don't trade the last 20 minutes as they seem to be the most volatile. start adding stops to YM trades, something i don't do with my option trades.

btw, the best reason i can think of for the runup, was end of the month book balancing. closing bad positions or looking in gains for the month by big funds. something to remember in the future.

on the plus side, i scalped the YM for over a K on a very dead day. but, at the same time i managed to lose it all in one trade. i still can't conclusively say that trading the YM is a good idea. today's experience was productive, but it hurt like hell.

i could use a drink right about now.

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