2k and SPY - not SPX - options
- Thread starter deltaf0rce
- Start date
this may not be possible using options, maybe spy but this is tricky on such a low acct. MES contracts may have been the way here.
it's such a trivial amount but losing money makes me sick.
So I’m still pretty razzed about this. I think the immediate takeaway here is the mistake of over trading. You notice that my morning was green. I was green because I closed a bull position and made money. That’s by definition the beginning of bearish sentiment. Taking a new bull trade, if being really fair about this, was adrenaline masking as logic. I had laid out a bearish case, knew what the breakouts were to support that case, saw them happen and traded against them anyway. Asshole move and totally preventable.
Because what logic was there? The setup I traded was a trendline converging with a 3 sigma level from the prior day. You can be fair and reward it with one contract...basically what I did yesterday, and wasn't a pig and put all my capital into it at that time, executed it well, and it worked. However, this time greed blew This idea out from a bruise to a critical injury. I was averaging down a loser, which is never a good strategy but particularly bruising using options. I‘ve rarely if ever seen that work. If I could have held tight at one contract, I’m down maybe $400 right now, not 1400. So that was a terrible decision. Welcome to tilt... psych 101
secondly, I think options on 2k, spy or not is probably the second and larger mistake. Trading them on daily expy, in type cash not even spreading, that’s adding a level of difficulty that really made this hard. You might even say impossible. I am going to give this some time, keep the account funded but not commit to going further.
on the bright side, stops are there for a reason (even if horribly placed and levered ) and there is some capital left for a new pursuit.
Yuck
Because what logic was there? The setup I traded was a trendline converging with a 3 sigma level from the prior day. You can be fair and reward it with one contract...basically what I did yesterday, and wasn't a pig and put all my capital into it at that time, executed it well, and it worked. However, this time greed blew This idea out from a bruise to a critical injury. I was averaging down a loser, which is never a good strategy but particularly bruising using options. I‘ve rarely if ever seen that work. If I could have held tight at one contract, I’m down maybe $400 right now, not 1400. So that was a terrible decision. Welcome to tilt... psych 101
secondly, I think options on 2k, spy or not is probably the second and larger mistake. Trading them on daily expy, in type cash not even spreading, that’s adding a level of difficulty that really made this hard. You might even say impossible. I am going to give this some time, keep the account funded but not commit to going further.
on the bright side, stops are there for a reason (even if horribly placed and levered ) and there is some capital left for a new pursuit.
Yuck
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Typing this out definitely helps.
Elliott wave which i use as a basis for determining short term position of the market (and that's about the extent of it). has a useful mechanism for countertrend moves. Provided you're not in a triangle correction and potentially looking at something deeper, they provide a useful and unique channel mechanism. going to keep an eye on this and if something tasty comes along, like the one yesterday that actually did work, perhaps i'll reengage. i doubt tht happens today.
https://www.tradingview.com/x/6gCW6t9O/
https://www.tradingview.com/x/6gCW6t9O/
i bought a 2485 call 4/3 hail mary at 7.1
So on a bear trend day you throw a bull hail mary. Does that clean you out if there isn't a miracle day end rally?
should cash settle for like 3.5 based on the close but yeah essentially. i should have flattened at 97