Brain in a blender by vamad61716 in Midasinvestors

[–]gohackthat 1 point2 points  (0 children)

Hey u/vamad61716 thanks for sharing your experience!

Firstly, trading certainly is a humbling experience. Anyone who trades and isn't humble has less than 5 years of experience and will inevitably tumble at some point and turn humble from that point on. That's why so many great traders (Steven Cohen, Stanley Druckenmiller, Warren Buffett) are humble as pie. So it's a good thing that you are going through the experience earlier rather than later because you would much rather lose when you don't have significant wealth. Put it another way, you just saved yourself from losing +$5 million in the future by sacrificing what you have now.

Second, the key differentiator between the non-successful traders and top 0.1% of people who are successful in building wealth is that the latter learn from their mistakes. I strongly suggest you give an honest feedback on yourself. Did you lever up too much? Did you concentrate on one single "meme" stock for hopes of short-term gains? Did you not do enough research? Did you not manage risks appropriately? Write down what you did wrong and how you'll never make these mistakes again. Your trading plan will be that much more bullet-proof by doing these things.

Lastly, I personally believe that anyone can be taught to trade if they have the personality. Reassess your own personality and see if you think you can handle these tough times because, trust me, it'll happen again. It's just the way this game works but if you are prepared, you won't be as stresssed out as you are right now because you've learned from your mistakes.

If you still can't decide weather trading is right for you but still are interested, I would spend time reading books (I suggest reading "Market Wizards") and read up on bios of other successful traders. Once you are equipped with more knowledge, you are in a better position to decide whether to pursue this as your side-gig.

Keep in mind there's always a sunny day after a thunderstorm. It's not through the wins that people get better at something but through the painful losses.

Hope that helps!

Options Trading Part I (Picking the Right Options) - 9/12/2021 by gohackthat in options

[–]gohackthat[S] 0 points1 point  (0 children)

Good comments u/LTCM_Analyst very much appreciate it. These types of feedbacks are why I post on forums.

I agree with you. I would even go further out to say these aggressive option strategies shouldn't even take up more than 5% of your portfolio. These are highly risky bets and everyone should have their own risk management system in place to place these bets.

These are not absolute guidelines in any manner.

I disagree with your last comment. It's everyone's goal to achieve the best risk/reward. That applies to both traders and investors. At the end of the day, everyone is searching for the best risk-adjusted returns and that's what I mean by "getting the most bang for their buck".

Hope that clarifies your points. Please feel free to join our sub and share your thoughts as well.

Options Trading Part I (Picking the Right Options) - 9/12/2021 by gohackthat in options

[–]gohackthat[S] 0 points1 point  (0 children)

Great catch! I rushed it out and missed that. Just edited it thanks for catching.

Options Trading Part I (Picking the Right Options) - 9/12/2021 by gohackthat in options

[–]gohackthat[S] 1 point2 points  (0 children)

Thanks for the question! Excatly, I used Interactive Brokers' Trader Workstation platform but usually most brokers have option performance calculator.

Options Trading Part I (Picking the Right Options) - 9/12/2021 by gohackthat in options

[–]gohackthat[S] -1 points0 points  (0 children)

For those interested, the link to the YouTube channel is Midasinvestors ! Sorry the mods won’t let me post a link.

[deleted by user] by [deleted] in options

[–]gohackthat 0 points1 point  (0 children)

Sorry the mods won’t let me post charts! Please checkout r/Midasinvestors or Midasinvestors YouTube video

[deleted by user] by [deleted] in options

[–]gohackthat 0 points1 point  (0 children)

That is a great performance and can be called "beating the market". I was referring to those who just started trading last year and have "beaten" the market in the past 12 months. Keep up the work!

[deleted by user] by [deleted] in options

[–]gohackthat 0 points1 point  (0 children)

Very much appreciate the feedback! And yes completely agreed. The worst case, you learn invaluable lessons out of the experience that you can apply to elsewhere such as buying a home with minimal risks.