Yeah, I'm happy that I made that decision. And I learned about options in the process. They are wild beasts and next time I'll proceed with more caution. Next time I'll know more about what I'm doing. I don't know what loss post you're refering to but yeah, I took a loss-- I did sell my coontracts at .45, and in doing so I managed my risk.
copa8 I have been selling naked calls and puts don't see the need for credit spreads. Because I am trading options on volitile stocks I have had a few positions gap and trade strongly against me and still been fine.
I realize you don't like me and you'll probably flame me for posting something so "worthless". But, I think you need to learn more about Money Management and Risk Control, too. You'll find few if any pro traders who would recommend allocating 50% of your account on one idea.
=============== Rowenwood; I used to feel disappointed when i cut a loss; now i actually feel relieved because ANYTHING PAST MY PLANNED STOP LOSS IS A STINKING UNEEDED BUSINESS EXPENSE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! NO I DIDNT buy any calls; taken enough losses in stock options to be real , real careful know by costly experience that many buyers get in too much hurray. DIA, SPY-SPX , QQQ , LU are still nicely uptrending ,including 50 DMA; cant say that for thier options.
No, it's alright. Your first response seemed like it was intended to annoy me instead of educate me. I felt annoyed and called you a jerk jokingly. I think you're probably right about risk management, and you could probably accurately recomend I learn about any one part of market analysis or economics in general. But I did sell at the price I initially set out to accoring to my risk management scheme. And I've never done that (50% call allocation) before and I'd never do that with a lot of money. I only did it because I thought it was a sure thing. So is there a book on the subject of rm that you reccomend I begin with?
I'm glad for that loss, I learn more from losses than from wins. Doing what I did with 5,000 will resrict me from doing something as agressive with 100,000. Got that lesson out of the way. Yeah, I like yor idea of thinking of it as a business expense. lol
That's cool...in a way I can't blame you for being on the defensive. This board is plagued with flamers. God help me if I should ever say something that's not true...lol Probably the three books that I got the most education about money management and risk control were the wizard books. If you haven't read these books, they are a must...imho Market Wizards New Market Wizards Stock Market Wizards Cheers...