I was at 78K net profit YTD until August, and then I thought I know how stocks work so I can make options work, and here we are. By year end, I’m sitting at 40K YTD profit net only. Lost ~40k doing options. Feeling discouraged and disappointed. Some wins some losses but the losses were more hard. Any helpful feedback for next year? I mostly traded: CRCL, CRWV, MU, HOOD, SPXW, and SMMT.
Posted by PowerfulHedgehog7410
13 Comments
What kind of options trades did you do?
Stop trading options
I went through similar emotional drama many times
.when i thought I figure out market puzzle..I just get the next trap..this time bigger trap and give back profits…what i learn is..never feel complicananc..cut the lost if u see things does not work..and move on to the next stock..best book to read is..best loser win..by Tom.. small gain and consistenty and cut the cancer early..easy to say..hard to do..win over emotion..I hope this helps
You don’t specify, so I’m going to assume you were ***buying*** options.
Maybe try selling options instead
You don’t live in a high tax location do you?
You touch the stove and it burns your hand. Should you:
1) touch it some more
2) leave it alone
I recommend learning about option spreads. Thats where the magic of options really shines.
Did you bother learning anything about options before diving in? I spent two years learning before I turned my first green year. From what I’ve read, I’m not unusual. Did you develop a trading plan first? Nah, didn’t think so. And you clearly didn’t know how to limit your allocations if you lost that much money that fast.
Nobody gets rich fast trading options, but plenty of people get poor fast. You only get rich slowly trading options. Figure that part out and you’ve mastered the most important lesson.
Honestly, after the chop and consolidation we’ve seen in the last couple months a lot of people are in this position. The market saw an opportunity to wipe leveraged positions and consolidate, as it seems things got a bit overleveraged and uncertainty has elevated amongst premium valuations. It has been a day traders market but brutal for swing traders.
exact same shit happened to me with the same numbers. im 19 and feeling pretty shitty about it. fully quit options except for maybe some super long leaps if a perfect opportunity presents itself, but otherwise just sticking to shares.
I have a separate options trading account with “fun money” it started this year with $5k had a rocky few months and went to less than $2k. After many ups and downs and learning what didn’t work I managed to get back up to $15k. I just learned how bull call spreads work and I think this is a great strategy to mitigate some of the high risk associated with options.
What is the account value. 70 K means nothing. Is your base 700 K? 7 million? 70 K?…