Another lesson on sugar. I thought I was not going to make a trade on sugar last night due to both contracts fall below previous day's low but still above BBM. However, they are in a down trend and broken down from the upper trend line. After reading Daily Mini's signals I thought I would short WSG from top on a pull back. I didn't feel it was right because it wasn't my clear setup. After debating internally a bit I thought the chart looks promising and I could miss a good short opportunity since it just fail on 50ma and trend line test. I felt that I need a winner pretty bad since my futures trading results had not been very good for the last two months. I even thought about to take the trade off when I went to bed last night. Then my staboness took over and thinking it was a small risk ($260) and I could afford it. For all the wrong reasons that I let the trade stay. The order got filled this morning but quickly cross up to a new high and formed a bullish engulfing daily bar. It may be a news driven but I failed to follow my rules and broke my discipline. I passed DB's SB short two days ago due to the rule of mine but I broke it myself. A lesson to remember.
Finally I was able to exit that GLD put position. a big loss ($1300) and lesson. Stop loss must be in place. The size of gold price drop never happened in the last 30 yrs. It happened while I had 1 small position Remember that anything can happen to the market and a position.
On the bright side, all my put selling options for this week are winners except the gold which I have to close it today regardless the price.
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