Listen bro, if you were in Chicago I'd say let's get a drink and commisurate I exited a FOUR LOT of AAPL 405p (bought @2.86) and 395p yesterday (bought at 63 cents!) Today they went up at least 8500 - I took it off the screen because I was ready to put my head through the wall. LOL. Sure I took a profit yesterday but had not a clue today AAPL would crash with expiration Friday. Figured it get pinned to 395-400 We all exit too soon... For me the reason I did this is too many open options positions on varying equities and indexes; spread too thin, cannot focus. That is going to change beginning today when I started legging out (so as to avoid the least slippage). I was so pissed. I use that "anger" to motivate myself. I hate losing profits that were right there in front of me had i DONE NOTHING as much or more than I do not like a loss. Like Jesse Livermore is quoted as saying in "Reminiscences": " "It was never my thinking that made the big money. It was my sitting. GOT THAT?! My sitting tight. I've known many men who were right at exactly the right time.... and they made no real money.... men who can be right and sit tight are uncommon...but it only after a stock operator has grasped this... can he make big money." I have only read that book about 5 times; but somehow after 20 years I forgot that principle yesterday, and other times this year. When I begin trading less positions my number one goal will be to not exit too soon. Too much work to find a good entry and then after all that effort, all the trials and tribulations, to give away profits is not acceptable. So I always think we have to be mindful of RULE #1, which is "preserve capital- stay in the game", while keeping in mind the quote from McDermott (Matt Damon) in the movie Rounders: "You can't lose what you don't put in the middle.......................... But you can't win much either!!!!"
It's funny, whenever you tell a non-trader a story like that they just don't quite get it. It's always, well be happy you made money. Tough call on the puts though. That's what i've started referring to as an "Are you fucking kidding me ? exit" I'm in So Cal , start drinking. i have. Cheers !
Can't believe its been a year since I started this thread. Time flies when you're having fun! Today was rather stress free, just need to stay put with the PA and don't do anything stupid.
obviously you are much smarter than me... anyone living in this cold forsaken City rather than CA is not thinking clearly. But of course we do have CBOE, CME and CBOT. lol
Not anytime soon, I believe I need to take this time to master my craft and I am in no hurry. From the technical aspect of reading a market I am 70% there, and from the psychological standpoint I'm about 60%. While I am blessed to be able to do this full time, I still have to be careful about it. Those who work a regular job and trade on the side have a nice cushion to fall on, but I don't. So I'm forced to be nimble and preserve capital, and never to overplay my hand. It's a double edged sword, I have all the freedom in the world as a trader, but at the same time I'm walking a tight rope and a slip can easily turn into a nasty fall.