Holding OEX puts overnight can be pretty risky. Now, you are contemplating doing the same with calls after a sharp up run.
First of all, I don't take anything you said the wrong way. I recognize that I have two basic problems that probably most could admit to as well...at least the beginngers...that is money management/risk control and patience/discipline.
Now more to my question on the above statment. What is position trading and don't position traders hold overnight????
In fact maybe I have it backwards somewhat. I would not at this point in time consider holding a mini overnight...too much risk, in my opinion. In fact, I insist on placing a stop right after placing an order for a mini. Anyway, it appears that the real risk is with OEX options...and holding overnight.
Well, regardless, I am on self-imposed sabbatical from using real money for a couple months, maybe longer, until I can prove to myself I can spot opportunities and capitalize. Today was one good one. I also have made mistakes and need to get to a much better percentage. My electronic mini account is down right now since I started trading it via the internet on paper. That is proof enough to me that I still need work. Oddly enough, I did not place a paper trade order on the move I saw today. Had I done so I probably would be even again...oh well.
One thing I have seen is that the traders who win consistantly at this game are persistent and don't quit. I am not quitting, but really questioning the time I am putting in on this ordeal at this point. I will persist until I learn this damn game. I guess I am just in a bad mood tonight thinking about my trades over the last few months. Anyone who thinks this game is easy has it all wrong...
It took me 4 years of undergrad and 3 years of law school and 9 years of actual work to get where I am today....I just hope it doesn't take that long to figure all this out! :)
-Scott |
