Hi Escape,
Any reason you took position against the trend yesterday, when the market was in green. Also you bought call at day's high. These are some mistake which option traders normaly do.
Buy at day's low and sell at day's high - this is the mantra for intraday traders.
But who knows when the market will trade low and high. If that is known everyone will make money. With the help of indicators we can find the trend and day's high & low.
When we decided to go long for call or put, we need to find the day's high & low. Should never jump into the trade. Avoid going long when its trading near day's high. Wait for the price to come to the average of day's & high & low. This will give better result. If it is not reached, then leave the bus. Tomorrow is waiting for us. If reached and go below average then go for put. TREND is important.
Above are some little lessons I learned from market during the past years' trading.
Happy Option Trading.
Hi Jeareh,
Thank you for your feedback and advise. Your observations are correct. Yesterday's I did some mistake and took two positions in opposite direction. You can see, I was not sure about what to put initial SL. I call it sandwich situation for me.
I took position in assumption that this will be breakout (until my order got executed, high was 99.8) and will become a support for next level. Unfortunately, that became a resistance and near day's high. These are whipsaws you will always have and can't be fully eliminated (but can be reduced), but with risk management, you have to reduce losses. This is what I tried after realizing mistake.
I should have avoided second trade until I'm out of first trade (that's my style, as I have observed I get confused easily if I take positions in opposite direction ). But when you are in market, we do these mistakes, and should be avoided.
Thank you again for observation.
Keep eye on my trade and advise me so that it can help me and other fellow readers.
Happy weekends and have successful tradings.
Regards,
Escape