Tuesday, October 7, 2014

Closed EMES bottom falls out

What I had perceived as "solid" support at  100 gave away and flushed this trade very quickly.  I failed to act quick enough and realized a larger loss than I had anticipated taking on.  My attempt to mitigate my risk by selling calls helped slightly but not nearly enough.   Out @90.80



Trade summary
Entry:  103.48
Exit: 90.85
2526

calls: entry 1.70  (short)
Exit: .40 (covered)
1.30  260
- 3.9 R  (ouch).

This turned out to be my worst loss of the year, It fell quickly and I was not prepared.  My worst trades seem to always happen after I've had a good run and my equity curve hits highs.  At that point, I take too much risk, or in this case try to bend my rules. This could have been a disaster as  EMES then fell another 17 points by the end of the week. 


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