Dang, I'm A Great Paper Trader

VIXTrader said:
That's a good thing that you aren't doing in your real account that dumb shit you're doing in your paper account. Trading Karen Supertrader style only leads to one place, bankruptcy.

You know, there's a reason it's called 2 standard deviations. Because IT DOES HAPPEN. If it never happened, it wouldn't be called 2 standard deviations would it? It would be called an impossible deviation.


Traders who think they are safe because they trade 2 SD out, are just picking up pennies in front of the steam roller. One day, maybe in a year, maybe in 10 years, you'll see why trading 2 SD out thinking your safe is a fools game.

It works for a while, maybe a long while, but eventually it gets you because as I said, THEY DO HAPPEN.
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I totally agree with you. What people don't realize is trading that far out are at a massive vega risk. They think the strikes are so far out they will never get hit. The problem is the volatility will rise so fast that you will be well underwater before the it gets anywhere near your strikes. During a crash the price is not gonna slowly go down and allow you to get out. It is going to crash hard. Look at the price increases below.
Your OTM strikes does not equal PoP

July 2008 - 194 point drop in ES
.03 delta put price increase $3.83-> $18.67

Sept 15, 2008 - 83 point drop in ES
.03 delta put price increase $3.4 -> $38.08

Those numbers should scare you. If they don't you have no idea what you are doing.

There is a reason why brokers like IB don't like people who short options so far out. It is because they are a massive risk

There is also a reason why Sosnoff said he wouldn't invest in her fund and he says he takes large risks.... think about that for a bit
 
Once you accept loss as cost of doing business, it won't be a major hurdle. I suggest you read the Disciplined Trader my Mark Douglas if you haven't already. It can help with the psychology of trading.
 
I agree with Wartrace. Honor your fear of loss, trying to suppress and not recognize your fear makes no sense. Trade the smallest size possible with this "Supertrader" strategy and allow the strategy to perform ( that means drawdowns ). Once you get some consistency and confidence and prove this out to yourself, you can always lever it up. But either take the mental cruelty out of it or find another strategy that suits your personality. Just my 2 cents, I wish for you success in your great endeavor.
 
Another great week in the paper account...

Karen ain't got nuttin on me.

Let's see, if I do a cash out refi on my RE, do the cash access checks on the CC's to build up the portfolio, I could make a killing trading with that much capital!

Signed,

Walter Mitty

;-)
 
Your R:R is skewed toward risk I assume. You are probably aware that some day it may hit you. That causes fear.
 
I tried to warn you with my post last week. If it was really so easy to make money doing the "Karen" style trading everyone would be doing it.

In one of the TT videos I recall Sosnoff saying he wouldn't invest in her fund because she is taking on massive risk and he has a good appetite for risk
 
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