Friday, 24 April 2009

Mental states

Missed yesterday the combo- 4300 calls and 3600 puts- just strikes that I like-no particular advantage. The morning trade based on my thoughts that market would rise, was to sell the puts to buy the calls- this was a credit trade for 6. the market went up and it was a credit of 16 to close out the trade. Now the reverse trade,and my favourite, the risk reversal, comes into play -sell the calls to buy the puts, based on market drop. So that was a credit of 16 and close out for zero. A possible max of 38 per lot.
Missed both, annoyed and now looking a little more desperately for that trade again, but am I just looking for the 'revenge trade' as my broker used to say?
Patience required, and my gut tells me to wait until after 1.30 when most of the US news comes out. UK has some news at 09:30 which could actually keep me out of a bad trade, so I'll bide my time.
Does anyone else think it is seriously odd that this 'greatest recession since world war 2' has so far seen record profits in the shops, the banks are doing great, and everyone apart from new car salesmen seem to be doing fabulously?

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