Hey there hivers, I wanted to share my last LOSS here, to show that I am not just showing you my wins only, to feed my ego or try to hide anything. I am serious about trading and do it for income. I am up a little more than 16% so far this year. I am pretty new to options (stocks), so my goal for this year is just to beat what the bank can give me.. a whopping 0.5% annual interest. Actually, a more real goal is to beat (in % of account gained) the supposed gain my financial investment firm, schwab, can do.. 4%. (although it seems to me like they just lose it in recent years)
Price was in a bullish mood and there didn't seem to any end in sight. Take a look at the heatmap of the market taken just before I entered my trade..
I felt sure that price would continue to climb and so I entered a PCS (put credit spread). That means I would win (keep the credit I received) as long as price ended above my sell strike, and my stop had not been triggered.
Things started off good and I was well into profit. :)
Then I went to have breakfast and send my daughter off to school. By the time I came back. (about an hour later)
price went from this..
to this..
:( Price fell, and fell, and continued to fall until my stop was hit and I was kicked out of the trade for a loss. Price did turn back up a little while later, but that didn't help me any. In fact price rose steadily the rest of the market and would've been great but.. too late.
So, there you go.. I try and win a few, then lose 1. Then repeat this over again. My record so far for most wins in a row is 10! :D
