Monday, January 31, 2011

DNR - target hit for itsy bitsy tiny weenie profit


Got into this trade back in middle of December, approx 6 weeks ago and this thing has just been going sideways ever since. Oh well, you sometimes get that.

It did FINALLY hit it's target today, here's the chart:


The amount of sideways action just killed my profits. I sold my long call today for $2.10 and originally bought it back in middle of December for $2.00. So, I made 10 cents, minus commissions due my broker brought me down to 7 cents (i.e. really $7) with an ROI of 3%.

Hey, $7 is $7 - now I can hit Five Guys for a burger.

One other note of EXTREME IMPORTANCE - when you HIT YOUR TARGET you MUST take your profits. Even though I didn't make good profits, my target WAS hit. Do NOT hold out for more by HOPING that the stock price will go higher. Once your target is hit - it's then more of a guessing game and you no longer have your edge.

Remember, I'm a trader, NOT a gambler in the stock market. If there is no edge in my trade, then I don't want it.

Glory to God for this trade - thank you.

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