You are Strong and I am Weak - May 22, 2007

Last week went well with the strangle. My original plan was to buy 1524 stop. It would've worked but I got freaked out by the price move. I have to be willing to take some risk. Instead, I covered my calls, and managed to only pay about 1 point. So I netted 5.5 pts on the trade.

Today, I expected a continued S1 trading. I thought it was a good risk reward trade to buy the market near the lows. I thought that the lows would hold, and that the highs were likely to be tested.

I bought 1527 bracketed with 1525 stop and 1532 limit.

As you can see on the chart, it would've went well, but I chickened out, and when it dipped below 1527, I sold out at 1526.50 rather than be stopped at 1525. The low was 1525.25.

It just goes to show that my original instincts are proving to be correct, but watching the market has hurt me.

The LORD is strong, and I am weak. Too many distractions in my life, and I have not been in prayer enough.

The system still works, but I am my own worst enemy.

LESSON: YOU HAVE NO EDGE IN WATCHING THE MARKETS AND TRADING!