PCLN was a bit scary today.

Posted on May 12, 2011 by admin

Glad to see the market first fell, then recovered and gained by closing, confirming that the market is trading in a range.  Especially of interest today is PCLN, falling to as low as 515. My setup of PCLN spread was long 510 put, short 515 put. I should not have done this trade, as it is too risky. Due to low volume of 500/505 and 505/510, I got a bit complacent and did the 510/515. It seems that I may be lucky this time. But I should stick to the principles: do not gamble, invest.

About admin

Richard Cheng, M.D., Ph.D., is an avid Wall Street investor with 20+ years of investing experience. He is specially adept at observing the world to find the patterns and then design strategies to win his battle. Most, if not all, happenings in the world, follow certain patterns. These patterns may be complex, multi-factorial, not so intuitive at the first glance, or even may appear chaotic. However, even chaos has its own patterns. If you pay attention and be patient, you'll find them and then you will gain an upper hand in your battle. Using this blog space, he documents his trades and his thoughts as they happen. He uses this blog as a a notebook to help him better refine his strategies. Hopefully this will help you as well. Good luck in your trading.
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