$SPX - Please Kindly Follow & Offer Any Contrarian Logic!
Quick TA, and for those that like my narrative -- here's to you!
Happy to report friends that I will be moving into my seventh straight week without taking a loss. Happy to likewise report that all the coin captured from the investors over the past 6 weeks, was less than the amount I made in the trade just this morning. Enough to warrant me taking a breather and watching my psychology.
Tried to re-renter after taking massive profits this morning, but the market never accepted my order. Running around, and did not have a time to check it till near market close and it never dropped back down to my comfortable level. Was attempting...another call vertical debit spread - favoring the long side, 1 month out - the June strike. Why break a working thing? I have consistently trading call debit spreads, or put credit spreads with great success. When I was trading strangles and straddles my success ratio if I was brutally honest with myself was probably 46-54%, and tempered with poor risk mitigation - it was a roller coaster ride and was effecting my thinking outside of the trading life as well. I knew I had to figure something out, or I was never going to be truly successful. I was obsessive with figuring out this game.
I will develop my skills with other strategies as other opportunities and market types present themselves, however always having a hedge and always entering with smaller position sizes, and remembering that I don't need to get rich fast, rather the journey itself accumulating wealth is what is appealing and fun - the results are insane. Dramatically. 100% success since switching to my broker that specializes in options, and focusing 100% on option trades in just indices has been a spigot of wealth.
This however has evolved now into me never being in more than two trades at a time QQQ and/or SPY. And I longed at the worst possible time before the FOMC meeting and had a target for my bank account that the pop after did not hit. I set the target, and didn't look back. Sometimes the strategy does not work. The following morning I sold the hedge. Dropped more.
TA was screaming buy.
BUY!
So I bought and corrected the position with an account sized naked call position.
Made more in that single trade correcting a timing mistake, than I did in all the trades over the past 6 weeks combined.
One additional lesson I learned from this, was it is ok to take a loss. When the pop after the FOMC meeting happened - I saw the TA & I knew the truth. I justified it in my head as it was hedged and could change tomorrow, but the TA was saying down, and I should have closed that position then - I didn't want to break the streak and that thinking needs to also be tempered down.
Don't be a perma-bear or a perma-bull - be right!
GL trading out there, get rich, and let's keep on learning & improving our game.
-ZenMode
Happy to report friends that I will be moving into my seventh straight week without taking a loss. Happy to likewise report that all the coin captured from the investors over the past 6 weeks, was less than the amount I made in the trade just this morning. Enough to warrant me taking a breather and watching my psychology.
Tried to re-renter after taking massive profits this morning, but the market never accepted my order. Running around, and did not have a time to check it till near market close and it never dropped back down to my comfortable level. Was attempting...another call vertical debit spread - favoring the long side, 1 month out - the June strike. Why break a working thing? I have consistently trading call debit spreads, or put credit spreads with great success. When I was trading strangles and straddles my success ratio if I was brutally honest with myself was probably 46-54%, and tempered with poor risk mitigation - it was a roller coaster ride and was effecting my thinking outside of the trading life as well. I knew I had to figure something out, or I was never going to be truly successful. I was obsessive with figuring out this game.
I will develop my skills with other strategies as other opportunities and market types present themselves, however always having a hedge and always entering with smaller position sizes, and remembering that I don't need to get rich fast, rather the journey itself accumulating wealth is what is appealing and fun - the results are insane. Dramatically. 100% success since switching to my broker that specializes in options, and focusing 100% on option trades in just indices has been a spigot of wealth.
This however has evolved now into me never being in more than two trades at a time QQQ and/or SPY. And I longed at the worst possible time before the FOMC meeting and had a target for my bank account that the pop after did not hit. I set the target, and didn't look back. Sometimes the strategy does not work. The following morning I sold the hedge. Dropped more.
TA was screaming buy.
BUY!
So I bought and corrected the position with an account sized naked call position.
Made more in that single trade correcting a timing mistake, than I did in all the trades over the past 6 weeks combined.
One additional lesson I learned from this, was it is ok to take a loss. When the pop after the FOMC meeting happened - I saw the TA & I knew the truth. I justified it in my head as it was hedged and could change tomorrow, but the TA was saying down, and I should have closed that position then - I didn't want to break the streak and that thinking needs to also be tempered down.
Don't be a perma-bear or a perma-bull - be right!
GL trading out there, get rich, and let's keep on learning & improving our game.
-ZenMode
Trade closed manually:
I closed out the trade today. With a minor loss. Streak over but loss mild.
Can't win them all!
Can't win them all!
