Monday, March 8, 2010

03/08 NDX Fast Butterfly (from 03/01)

Every once and a while you slip and make a mistake. This happened to me on this position: In hindsight, adding the call butterfly by end of day Friday violated one of my lessons learned.. Adding an income strategy right before the weekend is usually a losing proposition. I was so focused on the OEX position that didn’t stop to reflect on the NDX. It was hedged and the best approach would be to simply let it be and open the call butterfly on Monday.

Another lesson I learned is not to focus too much on the past, while trading, the present is all that matters. The best you can do is make a few near-future assumptions and learn from the past. So I take notice of the mistake and do not beat myself over it, keep on managing the trade is the best thing I can do at this point.

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