Today I am grateful. I took home some calls that I stupidly held overnight. I got rescued from them. Didn't even try to optimize it. Just lucky to get out of wide spread, low volume, tomorrow expiration stupid calls without losing my pants. So I got out for +3% in the first minute and I'm happy as a clam. Whatever happens after that, was not my money. I'm not even going to look back. Today, luck wins.
Then I had 2 more winners in MU puts and NVDA calls. I caught the move and didn't stick around when both reversed hard. That's how I want to trade! In and out.
BUT, I am still in the throes of a terrible descending spiral in my account. I have moved a lot of cash out of my trading account to slow myself down and keep powder dry, so I'm comforted by that, but why do I keep trading like an ass?
I need to follow CLOCKWORK TRADING rules: small size; tight stops; pay myself first.
What is my major malfunction? I freak out over losing trades. Literally lose my mind! I think my main defense against this needs to be the tenants of clockwork trading.
- Small size keeps losers small
- Tight stops keeps losers small
- Pay myself first ensures I can lock in some profits
I might also add: trade only the most liquid options; trade only the opening move. If I'm not done before 10, something is wrong.
I think I need to do some research about how to not freak out over losers. Not revenge trade and all the other crap.
