Well the latest trade was one for the books... I've never really appreciated the famous quote that "the markets can remain irrational far longer than a trader can remain liquid!"
I experienced this first hand with my short position in BIDU call options. Everything pointed to a ridiculous up trend that could not continue, however, it did for far longer than I expected only to break down after a major margin call essentially forcing me to cover my short positions.
This burns a little but life goes on. I will stop short term trading for a period of time to make sure I am not trapped in the "gambler" mentality. This is when a gambler will try to recover losses in the next bets and usually ends up betting larger and riskier than before and eventually busts!
Process is important here and I have to keep a clear head to make sure my other positions don't suffer. So I may not post trades on here as often, because I am not making any trades. However, as I read more about behavioural investing, with every page I learn more about the role of personal and market psychology on trading and investing as a whole.
I will continue to post on what I learn and what I think will be most significant.
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