Weekly recap

Last week was not a great one for most investors. However I was standing on the shoreline for most of the time, save my May call in ACL (seeming still to be a looser, and probably a candidate for a trade where I did not act along my strategy). I still feel lucky!

Lucky, because early enough in my trading (ok, now just virtual) career I have seen a good correction. Even better than that is the fact that seemingly I am educated to the point when I can quickly adapt to changing situations. (Here I refer to the fact that within 4 days of looking and trying I have found an FX strategy that I could shape to options trading).
This was promising.

So, a few more words about my first 'Turn-to-trade' short trade in options. As I wrote in my Friday post about it, I was worried because the stock (MBT) was trading high on a strong volume. But infact I had my intuition working in a good way as I have thought that a non-US stock will be more likely hit by sellers, when the mood goes South. Finally, this have happened as my Put got $140 (or +29%) in the green within the day. The only thing I have to do now is to set a better trailing stop. I have figured that to have the Ask price as a trigger is probably not too straight, as the order might not get filled consistently. As far as I see the Ask prices tend to fluctuate less (Sellers, like in many walks of life, are usually not so keen to accept the fact that their holdings might worth less on the market.)

Finally, a few interesting notes from the last eIBD Big Picture of the week, that goes well with my above trade experience.

Don’t even consider buying stocks until you see the market hit bottom and stage a followthrough day. ... /...
Many foreign stocks have a reputation for being more volatile, and thus more susceptible to big losses when the market turns lower. That proved to be the case last week.

Now get some life and start to enjoy the weekend, folks!