Seizing Opportunities

While I've been having fun in the last couple weeks, even when the trades didn't go as I expected, I think having something that works for me is great. Overall, through my approach I've had a 70% success rate, where the other 30% was the failures that occurred when I broke my own rules.

While I want to continue doing what I've been doing, I did come to understand that the size of my bank can easily become a lotto approach, given that the prices for each contract is often $200 - $360 depending on the stock. It becomes unsustainable when I go all in at once. While I do believe in my approach and my setup, I do recognize that it is risky. Seasoned traders would never approve of my approach as the risk is too high.

Before I move on, I do want to address the trade I tool on $AMD

While $AMD did close higher than yesterday, and at some point I had a 8% return, I ended up taking a 10% loss. Which brings me back to my initial point, my approach has been good to an extent, but it cannot be sustained by small banks. For example, my strike price was $470 expiring tomorrow. This contract was severely out of the money, I needed a $30 grow for it to have a good return.

Why did I take such a risky and insane contract? because a contract closer to the current price ~$10+ which I don't feel comfortable trading just yet. So, this makes me want to take a step back and seize other opportunities and start trading indexes as it might be more manageable.

Tonight I will try to understand some of it and see it live tomorrow Friday. This might be a good pivot as I will have Friday to witness it live and then continue my learning over the weekend and be more suited up for Monday. It's both exciting and bittersweet, having to walk away temporarily from catching good waves feels like I need to go get a better board first.

Let's see about them indexes!