I sold my May 46 calls as we finished out a strong close in the markets today. If we had a slower up move today I would have held for the rest of the week. We had a big gap up today that needs to be filled and we are getting towards a short term over bought condition.
So for a recap, I was in 20 contracts of QQQET at a price of $0.75 and out at $1.01 for a gain of 34%.
We may continue to power higher, but one lesson I have learned is to take your profits while you can. You may leave some additional money on the table, but I would rather hit singles and doubles than always swing for the fences. I still hold my longer term Jun calls on the Q's that can take advantage of any additional up move and if we see some short term downside, these will not be hurt as much.
I had a reader of this blog recently ask me why I'm doing such small positions. Well when I started out this site I picked an account and funded it with $10,000 to track my trades. With an account of this size I don't want to go into trades that are much more than $1000-2000 or 10-20% of the portfolio. Position sizing is a very important tool when you are trading. I have been bitten hard by putting on too big of a position and losses can quickly deplete your capital if you are on the wrong side of a trade. As the account grows I can up my position sizes accordingly to maintain that 10-20% mix.
So for a recap, I was in 20 contracts of QQQET at a price of $0.75 and out at $1.01 for a gain of 34%.
We may continue to power higher, but one lesson I have learned is to take your profits while you can. You may leave some additional money on the table, but I would rather hit singles and doubles than always swing for the fences. I still hold my longer term Jun calls on the Q's that can take advantage of any additional up move and if we see some short term downside, these will not be hurt as much.
I had a reader of this blog recently ask me why I'm doing such small positions. Well when I started out this site I picked an account and funded it with $10,000 to track my trades. With an account of this size I don't want to go into trades that are much more than $1000-2000 or 10-20% of the portfolio. Position sizing is a very important tool when you are trading. I have been bitten hard by putting on too big of a position and losses can quickly deplete your capital if you are on the wrong side of a trade. As the account grows I can up my position sizes accordingly to maintain that 10-20% mix.
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