Week 2 Day 5: 20% in One Day, Massive Returns!

Posted by CarpeDiem | Tuesday, August 19, 2008

Up Day: + $6.70 20%

Pretty good trading today up 20% on the day and 59% since the start. Well I did violate one of my rules today, I traded before 1:30, but I almost paid for it.
It was about 12:20 when I decided to trade, I saw in my analysis the Dow had little chance of closing below -75 points so I bought the DOW.19AUG.-75 @79.5 and the Dow instantly went against my position. So with further analysis I decided to sell the DOW.19AUG.HIGHER @ 10 as a way to insure profit just in case the DOW.19AUG.-75 went against me and the DOW closed below -75 points. About an hour later I made the decision to buy DOW.19AUG.-25 @ 89.5, so at that time I was nearly fully capitalized. Then I bought the DOW.19AUG.-75 at a deep discount I only paid 68 for it giving me a huge profit potential and leaving me FULLY CAPITALIZED only $.15 was left in the account. All went well though the DOW closed way down @ about 130 which allowed me to take profit on all my positions.
I finished the day up $6.7 after commissions which is 20% for the day and 59% for 5 days of work :)




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Contract: DOW.19AUG.HIGHER
Buy or Sell: Sold
Number of Contract Lots: 1
Price per Lot: 10.0
Order Number: 392270966
Transaction Time: 5:28 PM, Aug 19 (IST)

Contract: DOW.19AUG.-25
Buy or Sell: Bought
Number of Contract Lots: 1
Price per Lot: 89.5
Order Number: 392284690
Transaction Time: 6:17 PM, Aug 19 (IST)

Contract: DOW.19AUG.-75
Buy or Sell: Bought
Number of Contract Lots: 1
Price per Lot: 68.0
Order Number: 392288122
Transaction Time: 6:27 PM, Aug 19 (IST)

Contract: DOW.19AUG.-75
Buy or Sell: Bought
Number of Contract Lots: 1
Price per Lot: 79.5
Order Number: 392268992
Transaction Time: 5:20 PM, Aug 19 (IST)



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2 comments
  1. BK August 19, 2008 9:18 PM  

    OK... I saw your post on ForexFactory when you posted it a day ago and i am looking forward of you reaching your target. Best of luck.
    Just wondering, if you are in US and if so, do you know what will be tax implications for this trading. Does it follow Schedule D or something else?

    TIA,
    BK

  2. CarpeDiem August 19, 2008 9:33 PM  

    Thanks for the motivation.

    About the taxes I am in the United States and I am really unsure about the taxes, as far as I know you dont have to pay taxes on these gains but to be on the safe side i'll treat it as a stock gain.

    But really I'll only make $10,000 from this, and the IRS is not going to be on my ASS over that so don't worry.