The Best Laid Plans of Mice and Men…

The following information is for educational and entertainment purposes only. Rio Verde Trading and the author make no claim that anyone can or will achieve similar results in their trading.

February 7 generated a set up trade for IWM. However when the trade was confirmed on February 8, I missed it for no better reason than I completely forgot. Did not even take my laptop to work, forgot all about it. As one ages they say the first thing that goes is memory and the second thing that goes, well they have little blue pills for that; but I digress.

That evening while checking the markets I quickly discovered the missed trade in IWM. Here is how that trade would have worked out.

February 8: Buy to open 45 IWM at 135.00, net $6,077..
February 9: Sell signal, sell to close 45 IWM at 136.9, net $6,158.50.
Net Profit: $81.50, ROI 3.23%

I recount this incident to, once again, emphasize the importance of taking every trade that comes along.  You never know which trade will be the big winner. With the probability of a profit of 74%, the odds are on your side.

I could have entered this trade February 9 on the open; but the opening price was .25 above the previous day’s close, which made me uncomfortable using that option. Buying on the open instead of the previous day’s close would still have been a nice profit.

The best laid plans and all that!