My Awesome Trading
- Thread starter Retief
- Start date
Were you selling puts during the COVID crash Feb-Apr 2020? How was the performance?
Selling puts can work well for long stretches when the market is trending up or sideways. The real test is when things crash quickly. Accounts can blow up quickly in these situations.
Selling puts can work well for long stretches when the market is trending up or sideways. The real test is when things crash quickly. Accounts can blow up quickly in these situations.
Imagine if you had more than $5K!
If I had 5K, it would be 7.5K and change now.
This is a new strategy implemented this year. The puts are cash-secured. The worst that can happen is I get stuck with a stock, which is why the puts are sold on fundamentally strong stocks.
Then you're pretty much screwed.
There were literally thousands of people saying the same thing in 2017. Now they're terrified of the stock market and got real jobs.
Why would I be screwed? The strategy is working and I plan to continue to do what is working until it stops working. What is your return YTD and your Sharpe ratio?
I've traded through the 2000 dot.com crash, the 9/11 2001 crash, the 2008 crash, and the March 2020 crash. I am well acquainted with the risk of financial markets.
I've traded through the 2000 dot.com crash, the 9/11 2001 crash, the 2008 crash, and the March 2020 crash. I am well acquainted with the risk of financial markets.
Because you claim to have "awesome trading" skills while you didn't show any trading skills besides following everyone who uses the wheel strategy. Attributing amplified market returns to your own trading skills is not being honest even with yourself. You also didn't show any serious attempt at risk management. While returning 2.5x more than the market/SPX (20% YTD) with this strategy shows that you can't be fully cash secured, and risking more than you're claiming, which also removes credibility from your other statements. Your claim of trading through all the crashes while having no clue what can happen to your "new" strategy also leaves a lot of questions.
You may do OK for now, but don't lie to yourself about your awesome trading that is pretty much the same as everyone else's wheel-based trading, including taking more risk than you assume. If you don't demonstrate truly "awesome trading" skills as you claim, and risk management skills, then you'll be screwed by your own arrogance, or at least complacency.
Last edited: