Trading and time
- Thread starter matt5555
- Start date
damn! that really is a windfall. i went to college, worked and saved up on a wall st floor for four years, quit to trade a year ago, have made almost 60% on my acct, and I still don't quite have what you made in one or two seriously amazing trades.
a small handfull of trades isnt the best sample, but i wouldnt doubt that you probably have strong innate ability, and you sound pretty cool headed about it all which is good. my recommendation would be to stop trading immediately, go to school, dont major in business unless it was what you were planning on all along, think about your profits and your trades for a good while, and maybe start doing some EOD swing/position trading after you've cooled off a little on those insane returns. the opportunity cost of sitting out isnt anywhere close to the cost of overtrading or gambling away your easy success ... and the pain of losing all that money. you got way too lucky to toss it away. that would be a huge tragedy considering what it takes most beginners to establish a stake like that.
or maybe you can be the cowboy and quintuple it again. what do i know? either way, i would think hard about what really happened.
a small handfull of trades isnt the best sample, but i wouldnt doubt that you probably have strong innate ability, and you sound pretty cool headed about it all which is good. my recommendation would be to stop trading immediately, go to school, dont major in business unless it was what you were planning on all along, think about your profits and your trades for a good while, and maybe start doing some EOD swing/position trading after you've cooled off a little on those insane returns. the opportunity cost of sitting out isnt anywhere close to the cost of overtrading or gambling away your easy success ... and the pain of losing all that money. you got way too lucky to toss it away. that would be a huge tragedy considering what it takes most beginners to establish a stake like that.
or maybe you can be the cowboy and quintuple it again. what do i know? either way, i would think hard about what really happened.
Write a How-To book and go give seminars on Option Trading.
The title of the book could be "How I paid off my college tution with Option Trading".
If your Lehman Option pays off too, you can write another book, "How a high school teenage bought his Porsche from Option Trading Profits".
I'm assuming that you were able to get a driver learner permit.
You will be very popular when you attend your first Finance 101 college class.
The title of the book could be "How I paid off my college tution with Option Trading".
If your Lehman Option pays off too, you can write another book, "How a high school teenage bought his Porsche from Option Trading Profits".
I'm assuming that you were able to get a driver learner permit.
You will be very popular when you attend your first Finance 101 college class.
First of all, you risked 108 thousand to make 50 thousand in ur first trade.
Second you risked 39 thousand to make 15 thousand.
seems like ur batting well.
But ur not a trader as of yet. Now you should take the 70 g plus the 147 thousand, to have a nice 277 thousand and continue to play options. I would lighten up a bit as ur luck may have played out.
go out and play 5 lots on stocks that move. You have built up a nice foundation. However...for your first two option trades.....you were balls out....keep that up with out understanding options, how they move compaired to the underlyer, DELTA and how you can be on the correct side and still get fucked due to adjusting of volitility, .
Two books you should read. Mcmillian on options, and Sheldon Natenberg on volatility and pricing.
but keep trading...University can always come last as many MBAs and undergrads have no jobs to go to.
Second you risked 39 thousand to make 15 thousand.
seems like ur batting well.
But ur not a trader as of yet. Now you should take the 70 g plus the 147 thousand, to have a nice 277 thousand and continue to play options. I would lighten up a bit as ur luck may have played out.
go out and play 5 lots on stocks that move. You have built up a nice foundation. However...for your first two option trades.....you were balls out....keep that up with out understanding options, how they move compaired to the underlyer, DELTA and how you can be on the correct side and still get fucked due to adjusting of volitility, .
Two books you should read. Mcmillian on options, and Sheldon Natenberg on volatility and pricing.
but keep trading...University can always come last as many MBAs and undergrads have no jobs to go to.
My advice to you is this. Take your initial capital and put it some where you can't access it. You've got 50k to play with through collage, and it you lose it well at least your not down.
If you want to be able get out intra day it may be worth signing up with a full service broker who can watch your position for you. Someone you can phisically call during the day for updates.
You'll pay about 10x as much in brokerage, but given your holding period, it is not so significant against the total trade.
Runningbear
If you want to be able get out intra day it may be worth signing up with a full service broker who can watch your position for you. Someone you can phisically call during the day for updates.
You'll pay about 10x as much in brokerage, but given your holding period, it is not so significant against the total trade.
Runningbear
Good Job!
Here's my quick advice.
1. As one previous poster said - do something nice for your parents/siblings use 10% of your windfall for this
2. Do something nice for yourself - 5 - 10% of windfall
3. If you are a Christian I woud urge (as you should already know) to tithe 10% of the GROSS windfall to your local church.
3. Put aside 80% of whatever is left aside (AFTER # 1 - 3) in a 3month fixed deposit so you cant touch it.
4. Use the remaining 20% to trade as you develop your system. Ideally after doing # 1 - 3 you should put aside the entire balance until you have devoped a system you have confidence in and paper traded it for at least 3 months. However, there may be some benefits to doing your system design and testing using real money to make it more realistic, hence I suggest using 20% of the BALANCE after doing items 1 - 3.
5. Read all you can - especialy about position sizing and risk management.
6. Do not even contemplate quitting college or even taking a year off. You can pursue all of the above while going to college. Consider this your part-time job.
In sum, take it that you have been blessed and MAY have some talent. Now you need wisdom and patience to use this windfall as the basis for a potential career and/or future financial prosperity.
I wish you well!
Here's my quick advice.
1. As one previous poster said - do something nice for your parents/siblings use 10% of your windfall for this
2. Do something nice for yourself - 5 - 10% of windfall
3. If you are a Christian I woud urge (as you should already know) to tithe 10% of the GROSS windfall to your local church.
3. Put aside 80% of whatever is left aside (AFTER # 1 - 3) in a 3month fixed deposit so you cant touch it.
4. Use the remaining 20% to trade as you develop your system. Ideally after doing # 1 - 3 you should put aside the entire balance until you have devoped a system you have confidence in and paper traded it for at least 3 months. However, there may be some benefits to doing your system design and testing using real money to make it more realistic, hence I suggest using 20% of the BALANCE after doing items 1 - 3.
5. Read all you can - especialy about position sizing and risk management.
6. Do not even contemplate quitting college or even taking a year off. You can pursue all of the above while going to college. Consider this your part-time job.
In sum, take it that you have been blessed and MAY have some talent. Now you need wisdom and patience to use this windfall as the basis for a potential career and/or future financial prosperity.
I wish you well!
if you REALLY want to help the human race, DO NOT send 1 cent to any organized religion. if you feel like donating money, give it to NASA.
(please do not delete. i think my opinion is just as valid as CPTrader's, although i'm sure it won't be popular.)
come work for me
oh, How I wish I was together like this kid when I was 18.
I have no advice for you young man.....you da man!
Michael B.
I have no advice for you young man.....you da man!
Michael B.