Short backpsreads are insane. The wing (long the fly) would've saved you more than $11k of that loss. Just be prudent, sit on your hands and only trade the close.
People who sell you junk like that are home schooled mooks. If you can't see that, then you are a mook, too.
Kudos to you for having the courage to face the music and take appropriate action. Options trading is a very tough game to win. There are likely many reading your post that probably should quit but don't have your courage. That decision will eventually lead you to somewhere else where your unique talents will succeed. Good fortune.
damn. i got this email last week. and it sounded so easy: Chuck Hughes has used this trading system to personally generate $5,776,807.63 in actual cash income over the past three years. But more important, it has helped small investors like you earn significant income as well, like... * The 74-year-old engineer who made $93,999 in 7 months... * Chuck's neighbor Frank who earned $285,480 in just a single day using my recommendations... * A New Jersey real estate broker who made $203,944 in just six months... It's a trading system that hasn't had a losing year in the last 12 years of live trading. In fact, one trader is using this simple but hugely successful trading strategy to pull in $88,083 a month in actual cash profits so far in 2011.
I can help save you your 'career', although you have to listen to this 1 piece of advice.... I mean REALLY ACTUALLY LISTEN TO IT! WHEN YOU NEXT SIT AT YOUR LAPTOP LOGGED INTO YOUR TRADING PLATFORM REMEMBER THIS........!!! Here it is:- ''BE PATIENT, WAIT LONGER, WAIT A TINY BIT LONGER..., and then only make the trade when the market is extremely overbought or oversold, not just slighly or moderately, ONLY when its extremely''
This makes good sense, but where to put the cash all the other times to keep safe but still generate some income?
It takes lot of conviction to finally say it in forum (which you knew but a bit hesistant to hear it)so that you can make up your mind. Iam almost close to your situation trading (not spreads) front month (or one next)options. we believe energy is a sure bet. One coal company gives a warning(canary in the mine) and with in next few days 2 or 3 more coal companies sing the same chorus.(all coal stocks collapses 30% in 1 week). So all optiions are almost worthless.same story with oil service companies. market could bounce in late october.But 10-15k$ has vanished. I should have smelled a rat when Swiss devalued. The Gangsters just held the pig a few more days till "Print it like Ben" said he can not do any more at the moment. Boom.They gapped down and took down everything. In a range trading market(that too intra day -I do ok with my indicators/charts) But when market break out/break down-some times iam stuck like deer in head lights while trading options. Stock/futures can cut stop loss. In options 50% loss is just like that (if not spread)
You have to just accept that you CANNOT SAFELY generate income 'constantly' just because you have a pile of cash. You either can be a predator in the market- By sitting logged-in to your trading platform watching your prey (the market) until, constantly watching it as it becomes quite overbought/or oversold, keep watching it as it becomes moderately overdone, keep watching as it becomes very overdone, and then finally when its extremely overdone and so at its very weakest you attack it hard and fast! OR You can be the prey of the market- By constantly being in trades non-stop, just floating and hoping. You may get ''lucky'' some of the time during your floating adventures if the market goes in your favour, however you will also endup being unlucky lots of the time and so lose lots of money. But the most important aspect of this is that your profitability by doing this depends almost exclusively on ''luck'', so would be no different to just gambling on roulette, apart from the odds being significantly worse than those of roulette. If you require more money to pay your monthly bills than you can VERY SAFELY earn per month from the stockmarket then the fact and reality is that you need to get a 2nd job to provide you that income. Theres absolutely no shame whatsoever in needing to do that though mate. And i can say from my personal experience that when you don't actually ''require'' any income from trading, you merely ''desire'' it, your trading becomes ALOT more sucessful and also enjoyable.