To J.P. and sword, and of course, SpongeBrain.
Excellent points all around. I started position trading in options, had a great run, and got cocky. Tried to day-trade, and ended up giving most of it back. It does become like an addiction, and once you lose, you try to make it all back, shooting for that "ten bagger" with some outta the money call or put, and you end up losing even more.
So I stopped for months, believe me that was painful, focused on work and saved up some more capital. Not only was I happier, not watching the tick minute to minute during market hours, but I got "smarter". I position traded again, on paper, noted any and all mistakes, and worked out a method, sorta, heh heh heh. Now I'm back in the game, much less emotion and much more technical, and a much better, focused, trader.
Point is, if I didn't have another income to cover living expenses, I would have screwed myself royally. It might take me years to get to where I have enough of a capital base to pay the bills, allow the account to grow, and have a consistent method and money management.
So, position trade, manage your money, be a "by the numbers" type. Don't go throwing money into a trade because it seems like a sure thing. MM's love that, its their bread and butter. Keep your day/night job, be able to pay your bills without cutting into your trading account. Better for it to be a hobby (albeit a little more interesting than say, macrame, heh heh heh) than the focus of your existence. Just my take, for now.
Cheers all.
D |
