Option Workshop blog #stocks

Monday, 12 December 2016

Trading like this can be fatal for you, Part 2

In the first part of this article, I briefly discussed a rather painful early trading experience during the financial crises in 2007/2008. I was short and still somehow killed my account.

I let my emotions dominate my trades earlier in my career. My self-worth was tied to each dollar made or lost. I was many things back then. Too eager, too risk-loving, too young.

Eventually, learned that my trading career is like a war that never ends. Every minute of trading is a battle with others trying to separate me from my money. If we fail to manage our emotions, we become easy targets. After blowing up my account multiple times, I learned some very painful lessons.

As promised, I will share with you my framework to keep psychologically sane while trading and also what to do when off balance.

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Monday, 12 December 2016

Trading like this can be fatal for you, Part 1

I was 24 years old and it was July 2007. I was sitting on the fixed income trading floor of BNP Paribas at the time and was just itching to take a big short on the stock market. Equities had been rallying in the face of a crashing fixed income market. It was like smiling into the fist of a much younger Mike Tyson.

I finally pulled the trigger after months of waiting and shorted as much high beta stocks my margin would allow. After all, that’s how the legendary Jesse Livermore used to do it right? I doubled my money in a matter of weeks and was on an emotional high. I truly believed I had found my calling in life.

Continue reading →

   big-short emotion on-tilt psychology revenge-trading sp-futures stocks trading trading-loss trading-strategy uncategorized