Hey that sounds great, Tim. I had this notion that you'd been holding onto those shorts a lot longer.
You mentioned perfect timing. I used to beat myself up over that, remembering I'm my own worst critic. If I didn't squeeze every ounce out of trade, I was mad. Heck, I'd make a 75% return, let's say, then get mad because it would have been a 100% return if I'd waited a few hours or until the next day. Oh yeah, like I'm not happy with a 75% return.
Greed.
Then I finally accepted the fact you can't be perfect in timing. However, what I can do is get better.
What I do is gauge the quality of my decision against what I could have done had I made a better decision. For example, if the swing profit for that day, or for a couple of days, was say 20-60%, and I closed the position out and made say 30% profit, then I left another 30% on the table. Well, given the volatility, that may not have been bad at all. That 60% figure may have been unreasonable for my position. I check the volume. The number of contracts I was closing may not have supported that price at the 60% level, for example. Sometimes I stagger the positions to get them closed easier. There are several variables to consider in evaluating that issue.
Bottom line, don't beat yourself up trying for unrealistic expectations of perfection on timing, nor don't get so hung up on it that it costs you a trade.
Greed.
That's why I sometimes say on here that if I can be just 50% correct in my decision making on timing regarding options, I'll take it. Like I said, a 80% swing, and I'm going to be unhappy being 50% accurate? Naw, that's still a 40% return and I'll take those any day.
RR |
