I told you guys...closing positions for a loss is for fools.

I bought a CLSK Mar8 18 put a few days ago, and it was down and over $4 ITM, and I was down over $1200 on the trade. Did I close it? Did I have stops in place? No way. Today it was OTM and I closed for .05. THIS is why I never close a trade for a loss.

The funny part is when I sold the puts I could see that the price was going to tank lol but I sold them anyway.

 

That's exactly how it works. The reason traders lose money is because they lose money.

Actually I was applying foresight that the trade would likely go against me, but I know I have numbers and stats on my side so I went for it anyway.
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Opportunity loss. Psychological “sunk costs”. It’s better to have a view of constantly moving funds to the most appreciating asset given a timeframe.

 

I almost completely forgot about the trade. Honestly, the best trades are the ones you don't even know you made money on.

 

" ... likely go against me ... know I have numbers and stats on my side ..."

 

%%
LOL that could work with a stainless steel investment, but even regular steel will rust into nothing;
dont try that @ home trade =you are a BlowUp wanting for chance to happen.
The funny part is some believe their own BS until it happens LOL.
That is funny , but painful for you when\ [not if] it happens

 

I've run the numbers for the worst case scenario and it doesn't matter. What made this one funny is I was almost trying to lose money but the market wouldn't let me lol. I mean it tried but I ignored it...you guys would have folded.

 

Ie. "The Do-Nothing Risk Management Method™" of mine was posted on Feb 12, 2024
I since then updated it a little bit: sometimes adding some cheap OTM LongPuts for $0.05 Premium turns it to a spread trade that cuts (caps) losses. I apply it when an high-impact event is expected to happen...
Of course meaning ShortSelling, and later adding OTM LongPut when it becomes dirt cheap (due to time-decay).