This is Jay.
Happy Friday. I am one of the newer members of 13marketmoves and today I wanted to walk you guys through this awesome trades that I took under the guidance of Chris, who is a senior trader at 13marketmoves.
This trade roughly yielded a profit of over 900%.
My profit was capped because I have an equity margin call on my account and TD Ameritrade, they liquidated my position before I had reached the target price. So quickly going over the trade facts.
I had bought 30 puts at 9:30 AM with a specific target price and the strike price and the expiry that was advised to me by Chris. I had bought these puts for 57 cents and as you can see at about 12:49 these puts were sold for $2.95.
This was five minutes before the target price reached. I was about $2.62 spot 78 and at that point in time premium was over $6 as you can see at the market close, which was 1:00 PM.
The market was 5.1 and then the price here was higher than the target price. So if you calculate, it comes out to be about $6. So overall an average that I made on this trade was over 200% or right around 200%.
But, like I said, there was a limitation on my account and I couldn't utilize the profit potential. Had it been some somebody else who invested that much money as I did, they would have yielded a profit of 900% or an overall profit of $23,000 and 300.
So I'm quickly going over one of the other aspects of the trade, which is the psychology.
Now this is a big aspect of the trade because as I've come to know, it's almost 70% of that because it's actually not the market that actually defeats you, it's actually you who defeat yourself.
So what do I mean by that? 9:30 is when I took the trade, right? When I was advised by Chris and so initially I show a profit. price is going down good, so I'm good and dandy. But then the trade turned around and started showing a loss.
And actually I started showing about 60, 70% of my investment gone into a loss. So was a period of 30 minutes or so, which was pretty painful.
And had it not been Chris holding my hand and keeping me level headed, I would have never been able to utilize the full potential and then obviously sold it at a loss.
And even as price kept going down and I saw the profits coming through, I would have sold early. If you sell early you never realize full potential of the profits. Case in point, I now stand at about 200%.
Had I been able to completely utilize the potential, I would've made $23,000 and 300 on this particular trade. So $23,000 versus $8,000. So you can understand, right?
So for traders, they're like close out the position early. Lesson learned.
And then in the end, a quick intro about myself and I'd like to say that last because I kind of wanted to go over the trade first, is that I do this as a part-time.
I work as a data analytics manager in one of the banks here in Southern California, and I've been through a multitude of videos and one of the videos that I came across was from Leo and that caught my attention, was where he converted $4,000 to $63,000, which is a testament to three things, basically.
The amount of research that went into the trade, the confidence that he had, even though he was showing a loss and then, which is the psychology factor, and then the smooth execution and exit of the trade.
So all these factors go into it, which is what I'm learning from Chris and I'm pretty excited to be part of this trading team early on while I'm still completing my courses. I definitely hope for more periods like this in the future and even more so to be able to identify these counter trades by myself after I've completed the courses and deepen my understanding of those.
So once again, thanks to the 13marketmoves team and Leo and Brandon and all the senior traders who put these videos out there. And especially to Chris, who is my mentor and is guiding me through this process.
So that's it. I hope you all had a great trading week, and if you didn't, well now you know. Folks, the profits are real. I sat on the sideline for so long and then I'm glad I took the decision and did the investment.
So, well, happy Friday.