Embarrassing is the only word to describe my trading today. System flashes the first buy signal at 11:45am but I decided not to take the trade because the profit/loss ratio isn't the best. With resistance at $210.74 and the signal coming in at $210.39 there just wasn't the space. So instead I decide to make the brilliant move of purchasing puts after the second buy signal once we hit what I thought was broken support and now resistance at $210.24. Why on earth would I do that on the heels of a buy signal? I honestly don't know and I guess I was hoping that it was a false signal and that we would turn around after testing the broken support level and confirm it as resistance. I guess I don't fully trust the signals just yet. Well price moved higher. This trade places me two steps back if not more not on a profit/loss basis (the loss was minimal) but psychologically. Just dumb!
Here was today's trade.
BOUGHT 5 SPY Mar13'15 209 PUT @AMEX @ 1
SOLD 5 SPY Mar13'15 209 PUT @AMEX @ 0.85