(opens calculator and types in the numbers and then falls off the chair) : 2x the avg income of the last 16 weeks!
this week has been very good to me and i am very thankful to everyone
, i read and like every post even if i forget to click on
few things i learned recently (from my notes):
- don't be ashamed/afraid of small gains and leaving money on the table; 4 quarters still add up to a dollar
- ignore noise (ie other thread's opinions that have no facts); focus on hard data and don't follow the crowd
- everyone on news/social media has an agenda or bias, trust in your own research
- plan your trade and trade your plan (this prevents emotional and spur-of-the-moment actions)
- have discipline (don't just trade left and right especially if they were unplanned the night before)
- have self-control especially when tempted; don't get caught up in the moment
- stick to the plan and don't abandon your strategy while thinking fast about something new
- the point is to reduce emotions, not remove emotions; we are not algo-bots
- let your stop loss or exit plan determine when to close a losing position; hoping for a reverse is not a strategy
- you can't control stock price up and down, but you can control your exit; there is nobody to blame for a large loss
- you don't need to time the lowest dip and highest peak, all you need is a piece of the move; stop maximizing gain
- you don't need to trade all the time, if there is no opportunity then rest on the sidelines
- think of risk-reward ratio; is risking $10k to gain $10 really worth it even at OTM, what if there is black swan tom?
- overtrading increases chance of losses, stop the addiction
- it's ok to relax on Mondays... sometimes, the best credits arrive on Wed/Thur
- don't do revenge trades (to make up for loss) if you didn't really think about the risk of the position's quick payback
- if lost money, there is no shame in walking away to try again another day
- if you don't want to own the stock, don't sell the put too aggressively (and then spend weeks fixing a problem)
- plan your trade's entry and exit; if there is no plan then it's gambling
- it's ok to earn even just a little here and there, stop trying to get rich quick
- it only takes one mistake to undo months of work
- options is not a salaried job, stop thinking you need to have a certain income every week (ie force a trade)
- there is no perfect strategy, all you can do is be consistent in following what works for you
- if you are not constantly looking at the stock price, then your process/system is working
- most problems are caused by sizing; reduce size and you have less problems
- focus more on why you are opening a position, not how to fix it once problem comes
- institutions are the ones making money, so observe/follow what they are doing
- you don't need to be good at everything, master what works for you and consistently do it
- being consistent doesn't mean profit is also consistent; it means you have discipline
- if you only care for a 2 DTE trade, why do you worry about next month's stock price?
- you can't control steep drops and hikes, so focus on what you can control: entry and exit
- most of all and most important, protect your capital
- the real goal is not to earn $$$ a week, it's to make sure positions have high probability of success
- if you want good income, then have high-probability setups
- ask yourself "how much can i lose?" instead of "how much can i make?"
- making money is the easiest part, preventing a large loss is why we plan ahead (entry/exit)
- control risk: it is not sexy and it is not popular because it means less income, but do it or you will lose everything
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