Losing 2 Grand That wasn’t yours

Don’t you hate it when you lose $2000 that wasn’t yours. Of course you do!

Okay, this is a trading scenario, so if this bores you… move along, move along, this is not post you were looking for.

Here’s how I lost $2000. Friday afternoon, I bought 2 First Solar (FSLR) “put options”, meaning that I anticipate First Solar to decrease in value. It’s a SELL high, BUY low kind of idea. The transaction was around $3380 or 66% of my account (not a wise inherent move). During the later part of the afternoon, I was down around -$300 and up +$300. Lots of movement that settled in at closing +$270.

So this morning, FSLR is going in the direction that I wanted to go. I was up +$600 at one point and then up +$270 another. TO protect my profit, I use a Stop-Loss order. The name says it all it (helps) Stop (my) Loss on a trade that goes bad.

So I set my stop and I got kicked out of my trade at around $3780, so that was $400 profit for me! YAY!

EXCEPT… that one instance where my trade got stopped was the last big up movement before the stock started to fall.

first solar

SO it’s NOT $2000 out of my pocket. It’s $2000 that COULD have been in my pocket.

But I still made a 12% in roughly 6 hours of trading…

About planet3rry

I'm a husband, father and runner in the Knoxville area. I love the way that running makes me feel and how it has changed my thinking. I am always looking for the new PR whether in the 5k or the marathon