Saturday, January 17, 2015

100% Call Option Loss

Today, I spent most of my Saturday snoozing away.  Sleep is my comfort zone.  I had a lot of little dreams that kept me in the somber land that I couldn't get up from.  Now I can't even recall them.  What did I accomplish?  Nothing.

When I am bored, I am prone to make rushed trades based on the current market trend.  My call option for $AAPL for $120 expiry date Jan 17, 2015 expired worthless.  I lost $86.84.  There were several times I could have sold my call option at a lesser loss, but I didn't want to admit defeat until the very end. 

My bet went sour and I let it punish me.  It wasn't a very big bet.  I could not lose any more than what I bought into. 

Point of my story is if you are not dedicated like me, you will end up on the losing side of the trade. 

Rule#1 - Always minimize your loss
Rule#2 - Keep your profits
Rule#3 - Do not watch profits sink into abyss

I should do the preaching to myself.  I need to wake up and stop fooling around.  Time for me to take this more seriously. 

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