I decided that I’d do a quick check on the cash in my trading account today to see how I was doing for the year. So far, 2006 has been a nice year. All of my trades have been 100% profitable, and I’m moving forward nicely. As it stands today (with 2 open positions), I have been able to secure a 25% growth in my trading account in 2006. I am quite happy with this number! Of course there is still risk that these gains can move back into the market if things move against me, so far things look good!

I’ve been able to roll out one of my April positions into May for a locked in 6% gain, and I’ve got a nice 38 point cushion to the top for my rolled May position. Using the numbers as they stand today, I would not be surprised to see a nice 75% gain in the account this year.

In order to make that happen I will need to remain diligent! It’s critical that as a trader you keep an eye on things! Over the past few years I have lost plenty of money to the markets, and a 75% gain this year won’t bring it all back. Most of those losses have been due to not knowing what to do, or not keeping an eye on things!

Not knowing what to do is typically more an emotional thing for me, it was hard to let go of my money in the past. If you don’t treat trading as a business, you will be too emotionally tied down and will very likley lose money, possibly LOTS of money!

So, lessons learned – keep abreast of the market. Watch your trades and cut your losses short! I’ve started to follow Warren Buffets rules:

Rule number 1: Don’t lose money.
Rule number 2: Don’t forget rule number 1.

So far, up 25%, target up 75%. Only time will tell!

Categories: Options Trading