corduroy
Active Member
After reflecting on a full year of trading (450 closed trades, still a noob but maybe level 2 noob) I'd have to say the most valuable skill I have learned is not split flip reverse rolls or some other advanced technique, but the strategy/art of doing nothing. When I first started trading, a day like today would have freaked me out, leading me to make bad choices - which I frequently made in the past. It is not easy seeing your BPS position down 500% like one of mine today, but the more it happens the more I get accustomed to that emotion and the more I can stay rational. One thing I read when I first started trading options was that risk tolerance is like a muscle, it must be exercised to get bigger. I really believe that.
I've seen this play out enough now to hold off on any action, and that majority of time the position will right itself (majority, not always). Assuming of course that there was enough of a buffer when you opened the position, because doing nothing doesn't work when flying close to the sun.
I've seen this play out enough now to hold off on any action, and that majority of time the position will right itself (majority, not always). Assuming of course that there was enough of a buffer when you opened the position, because doing nothing doesn't work when flying close to the sun.