June 2012 In Review
Sorry for the lack of posts the last few days. I’ve just been really busy. I’m not sure I’ll be doing daily trade recaps since I’ve got too much going on. For now I might just stick with weekly and monthly recaps, highlighting some of my important trades of the time period, both good and bad.
June was a nice profitable month for me with a 5-figure month, although not one of my best. Stats-wise I didn’t perform as I would like to; I did not meet my 70% winning trade goal (although I wasn’t too far off), and my P/L ratio was only 1.79 (I want at least 3). My average loser was bigger than my average winner. I made a lot of money from the short side but was a loser from the long side. My biggest mistakes were:
1. Going in too large in May on RPRX June 7.5 puts and taking a big loss on them
2. Going in too big on an OSIR short, fudging on my stop, and taking a much bigger loss than normal. I made up for it with another case of going in too big on MITK and winning, but that whole sequence should have never happened.
3. Making a similar mistake as Nate Michaud from the chatroom and averaging down on ANTH on Thursday, taking a much bigger loss than normal on Friday. I had planned to average in, but when it was stabilizing in the 90′s I was in full size, and rather than getting out when it broke its low, I continued to average down. It can be tempting on those slow bleeders to average down and give it a bit more room.
4. This was the first month in a while where I had multiple days where I did not obey stops. That needs to change very quickly in July.
My best trades were:
1. Scaling into a JIVE short in anticipation of its IPO lockup expiration, getting a really nice profit out of it.
2. Scaling into a synthetic short of OSIR a few days before its collapse. Since there were no borrows available, I simultaneously bought the 12.5 put options and sold the 12.5 calls. I closed them out on Thursday for a nice profit.
For July, I need to tighten back up on my stop adherence, and work on letting my winners run and not prematurely exiting trades. I cost myself some nice profits by not letting LXRX or ONVO run, to name a few.
Here’s the stats for the month:
ALL TRADES
Net P/L: $10304.50
Total Gains: $23372.72
Total Losses: $-13068.22
Ratio of Gains To Losses: 1.79
# of Trades: 200
# of Winners: 132
# of Losers: 68
% Winners: 66%
% Losers: 34%
Largest Winner: $2785.20
Largest Loser: $-737.90
Average Winner: $177.07
Average Loser: $-192.18
Average Trade: $51.52
Win/Loss Ratio: 0.92
Average Winning Trade Length: 3.39
Average Losing Trde Length: 5
Max Consecutive Winners: 14
Max Consecutive Losers: 6
LONG TRADES
Net P/L: $-1393.47
Total Gains: $7462.18
Total Losses: $-8855.65
Ratio of Gains to Losses: 0.84
# of Trades: 91
# of Winners: 52
# of Losers: 39
% Winners: 57.14%
% Losers: 42.86%
Largest Winner: $934.58
Largest Loser: $-737.90
Average Winner: $143.50
Average Loser: $-227.07
Average Trade: $-15.31
Win/Loss Ratio: 0.63
Average Winning Trade Length: 1.92
Average Losing Trade Length: 5.67
Max Consecutive Winners: 9
Max Consecutive Losers: 7
SHORT TRADES
Net P/L: $11697.97
Total Gains: $15910.54
Total Losses: $-4212.57
Ratio of Gains to Losses: 3.78
# of Trades: 109
# of Winners: 80
# of Losers: 29
% Winners: 73.39%
% Losers: 26.61%
Largest Winner: $2785.20
Largest Loser: $-715.92
Average Winner: $198.88
Average Loser: $-145.26
Average Trade: $107.32
Win/Loss Ratio: 1.37
Average Winning Trade Length: 4.34
Average Losing Trade Length: 4.10
Max Consecutive Winners: 24
Max Consecutive Losers: 6
