I took stops for my 1680 and 1685 for this week at 1.5 to 2X. I am glad I did it regardless the prices are lower now. Although the prices I got was not as good as yesterday's. But I didn't act like a deer in the head lights not knowing what to do. In reviewing my serials of call selling last Wednesday, I made several mistakes.
1. Overly confidence: ES was at 50 MA and the old 8-15 gap had not been challenged. I was overly confident that ES would have tough time to go through these levels with Syria over hanging. I set my entry levels in Fib 50 and 62 area. I didn't expect there could be another solution for Syria and Friday's job report was below expectation. The market gaped up to cross the old gap.
2. Bend my rules. I don't enter orders on one side for three weeks out in one day. Because of the over confidence and my increase margin. I entered in orders with all three weeks thinking that was a once in a week time opportunity. A thought of this was wrong did come cross my mind but I ignored it. Actually I should wait for Thursday or Friday to place orders to get better decay.
3. Poor execution. My order is set for $10 increments so I can have more protections. This time I did it in every increment next to each other.
Those mistakes cost my near $700 this week. It may go even more for next week's calls if the ES continue to move up.
Things I did well are:
1, Took stops unlike in May I waited for them to get assigned at higher cost.
2. Hedged my lost from the other side which reduced my losses.
3. Mentally accepted my losses and hopefully learned from these mistakes.
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