*I wish my account hadn't fallen below the 25k day trader quota! these are perfect times!) I (Jotti) am eating soup with a fork here! haha. I guess in a sense I haven't practiced what I preached on eliminating hollow optimism and factoring in risk assessment. Okay if it ain't broke don't fix it right? Well in my case it's become broke and I'm emptying the tool shed in a hurry. I've been playing russian roulette with more then one bullet in the cylinder and it has cost me big time! Reflecting back on my most recent posts (plays), I am the bully who played the solar call options (i couldn't barter the contracts for air right now), bought CC a few days before the bk filing (luckily I sold at no loss), ATVI a few days before the downgrade!(which I am still long on), and covered both my YHOO and CBG short positions way too early! (minuscule profit compared to loss). The global economy sucks, there's no miraculous one weekend fix here! But I just hate the feeling that this market could rebound 1000 pts at any given time if bargain hunters and a chain of positive news happen to surface in tandem. Emotions are hard to contain, when we lose X amount of money, we tend to double down X in hopes to recuperate on the next play am I right? (hence my solar and CC plays, both could have doubled in value or dropped in the same degree).
I've discovered as of late that I have fallen into the depth of taking profits too early and cutting loses too late, allocating less $ in lower risk plays and dumping generously in high risk ones, worst predicament one could get caught in! Blah...anyways, these things happen but luckily I have an iron stomach since I've been trading for nearly a decade now and have experienced several up and down cycles. But I promised myself to render and warp this cycle. I (should) have the knowledge and experience to do so. The point of my entry today is to help wake up some of the people who have lost tremendously the past 6 to 8 months...better late then never as they say.
***IN PLAY*** conservative long position, I bought Dec. 12.50 calls of ATVI activision/blizzard and I stand by this investment 100% (I also hold dec. 15s) ( I see no lackluster holiday sales and the company's books seem solid enough, and to my knowledge there are no reckless spending on product releases, for both home console and pc base, the downside? P/E is pretty high up there haha, but I see profit margins rising and customer base. I'm one for sure who will be seeking entertainment at home as opposed to going out these days =( haha - Cheers! Jotti.
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