I wasn't able to post as frequently over the holidays so I am putting my trading notes for December in one collective post.
Trading Notes 12-11-14
After pulling out of this Facebook trade I learned some valuable lessons . One key lesson is to always take profits when you can even if you think the stock is going higher if you set a stock price target stick to your game plan
Looking forward for the next couple weeks I want to see what the historical data is on certain stocks, are they usually up or down going into the new year.
Trading Notes 12-17-14
I felt good about my trade and I had done all the necessary research in Facebook I looked at the technical analysis as well as the fundamental analysis and there were great news stories that supported the stock going higher.
I held off on making a Monday trade because I remembered what had happened in the previous weeks.
So I placed my trade on Tuesday as I had planned I waited for the stock to go down after it had bounced and it was heading back to an area of support.
What I hadn't planned on were the global market conditions. With the declining price of oil along with the Russian currency collapse in the upcoming Federal Reserve meeting the market was very fearful. This caused Facebook stock to plummet despite all of the positive signs of growth and stability in the company. Even with the announcement of China allowing Facebook into the country the stock went down.
This made me nervous about staying in the trade but I wanted to see what the Federal Reserve was going to say. My management strategy was to roll over my credit spread into the next week's options. That would have given me some extra time for my trade to play out.
When the Federal Reserve at their conference call said that they were not going to raise rates, this caused the market to shoot up higher making my trade a profitable one.
Some of my takeaways from this experience are to always believe in yourself. I had done the research and new at what levels to enter and exit my trade.
I also knew that the probability of me winning was 78% and this was what I needed to believe in. Yes I could have made more money but I stuck to my plan and made what I wanted to make on this trade.
Trading Notes 12-11-14
After pulling out of this Facebook trade I learned some valuable lessons . One key lesson is to always take profits when you can even if you think the stock is going higher if you set a stock price target stick to your game plan
Looking forward for the next couple weeks I want to see what the historical data is on certain stocks, are they usually up or down going into the new year.
Trading Notes 12-17-14
I felt good about my trade and I had done all the necessary research in Facebook I looked at the technical analysis as well as the fundamental analysis and there were great news stories that supported the stock going higher.
I held off on making a Monday trade because I remembered what had happened in the previous weeks.
So I placed my trade on Tuesday as I had planned I waited for the stock to go down after it had bounced and it was heading back to an area of support.
What I hadn't planned on were the global market conditions. With the declining price of oil along with the Russian currency collapse in the upcoming Federal Reserve meeting the market was very fearful. This caused Facebook stock to plummet despite all of the positive signs of growth and stability in the company. Even with the announcement of China allowing Facebook into the country the stock went down.
This made me nervous about staying in the trade but I wanted to see what the Federal Reserve was going to say. My management strategy was to roll over my credit spread into the next week's options. That would have given me some extra time for my trade to play out.
When the Federal Reserve at their conference call said that they were not going to raise rates, this caused the market to shoot up higher making my trade a profitable one.
Some of my takeaways from this experience are to always believe in yourself. I had done the research and new at what levels to enter and exit my trade.
I also knew that the probability of me winning was 78% and this was what I needed to believe in. Yes I could have made more money but I stuck to my plan and made what I wanted to make on this trade.
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