It's the pay back day for not controlling risk. I roll over majority of my wheat and corn puts today. The total loss is near $14K. There are still 4 wheat contracts left with approximately $6K underwater. I am waiting for it to go down further to enter my further OTM positions. But the future of the roll overs are still unknown plus the lost time. Roll over should be my last result as I have learned from last April. Add on and roll up (down) are the early steps to deal with risk. I will pay for it again if I don't deal with the risk and take firm actions. I was over confidence and wasn't fearful after I realized the trend change. But I didn't deal with it affirmatively. I didn't believe there could be a 6 weeks of continuously drop. But anything can happen in the market place. As FT said, behavior won't change unless you are proactively changing it.
Trading is an endless game. One must constantly control the risk in order to stay in the game and make profit.
Indices just won't go down despite Iraq crises. It looks like bull want to see what's above there. Tomorrow's FMOC could be a trigger. I have couple of RUT bear puts and one ES 1955 endangers. I will be ready to exit out if tomorrow's Fed meeting pushes the market up.
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