There are several way to control or manage your greed. These are the following ways...
Systemize your trade
- Set your profit target even before you went into a trade. Put stop loss to protect your losses and let it run automation.
Take profit off the table and Let 1 run ...
- If you have more than 1 contract and you are in a winning position, Take profit first and let 1 or 2 of your contract to let it run. At least if the trade turn against you, you wont be losing.
Being the Third person
- Ask yourself question. What will the Gurus do ? what will the professional do ?
I sincerly hope that the above methods will help you to do well in your trading when greed slowly creep into your brain.
Friday, August 31, 2007
Trading without stress in a confuse market
GOOG OCT 510 Call +88 (ATM)
GOOG OCT 510 Put -52
Net profit: 36
GOOG OCT 520 Call +108 (OTM)
GOOG OCT 500 Put -72
Net profit: 36
I traded google yesterday when google is at 510. Today i took profit when google traded at 511.
Well i know for sure is not the price of the google that make the profit but is the OPTION of the google. This is the power of option strategy. Seriously when i traded this way, i really have no stress haha. ;D Im still in the mist of finding out how the greek really work for this kind of strategy.
Im looking forward to attend OptionUniversity course which is run by AKLTG this coming november ... ;D
GOOG OCT 510 Put -52
Net profit: 36
GOOG OCT 520 Call +108 (OTM)
GOOG OCT 500 Put -72
Net profit: 36
I traded google yesterday when google is at 510. Today i took profit when google traded at 511.
Well i know for sure is not the price of the google that make the profit but is the OPTION of the google. This is the power of option strategy. Seriously when i traded this way, i really have no stress haha. ;D Im still in the mist of finding out how the greek really work for this kind of strategy.
Im looking forward to attend OptionUniversity course which is run by AKLTG this coming november ... ;D
Thursday, August 30, 2007
What is Greed in trading?
Greed is an inordinate wanting, a longing that is out of control. Greed by its very own definition can never be satisfied.
Every trader or investor will experience Greed at least 1 time during trading. Without the Greed factor, there wont be the wanting to trade. Greed make a person want to risk their own money to make MORE MONEY. You need to be Greed with proper control will be an aid in trading.
"The point is, ladies and gentlemen, greed is good. Greed works, greed is right... and greed, mark my words, will save not only Telder Paper but the other malfunctioning corporation called the USA" by Gordon Gekko in "Wall Street"
- How often did you take profit and realise that you took it too early?
- How often do you rush into a trade because of the greed of wanting not to miss the opptunity to trade?
I will share how to manage your greed on the next article.
Every trader or investor will experience Greed at least 1 time during trading. Without the Greed factor, there wont be the wanting to trade. Greed make a person want to risk their own money to make MORE MONEY. You need to be Greed with proper control will be an aid in trading.
"The point is, ladies and gentlemen, greed is good. Greed works, greed is right... and greed, mark my words, will save not only Telder Paper but the other malfunctioning corporation called the USA" by Gordon Gekko in "Wall Street"
- How often did you take profit and realise that you took it too early?
- How often do you rush into a trade because of the greed of wanting not to miss the opptunity to trade?
I will share how to manage your greed on the next article.
GS vomited but i profited
GS OCT 170 PUT BOT 7.50 SLD 8.9
Net profit: 140
Er im happy because i make money. But im not happy with my performance because i lose 200 buck profit as i too quick to take my profit at the opeing bell... geeZ
I wanna buy a call when it hit 168 as i know it just the stupid fake the gap thingy. But i have limited day trade and yes im not at home so my body system tell me not to trade.
Some thoughts to ponder
What will you do if you see dow at 90+ at the opening bell and you wont be free to monitor your stock? Will you take profit like what i did? or will you just let it run? or will you just put a stop lost?
Net profit: 140
Er im happy because i make money. But im not happy with my performance because i lose 200 buck profit as i too quick to take my profit at the opeing bell... geeZ
I wanna buy a call when it hit 168 as i know it just the stupid fake the gap thingy. But i have limited day trade and yes im not at home so my body system tell me not to trade.
Some thoughts to ponder
What will you do if you see dow at 90+ at the opening bell and you wont be free to monitor your stock? Will you take profit like what i did? or will you just let it run? or will you just put a stop lost?
Wednesday, August 29, 2007
Strangle Google
Brought it on monday when google around 512
GOOG OCT 540 C -172
GOOG OCT 490 P +268
Net profit : 96
Brought it on yesterday when google around 515
GOOG OCT 530 C -262
GOOG OCT 500 P +368
Net profit : 106
This is the strangle strategy that i used and make a small profit ;D. The above prove that not much different between the 2 set of strangle. I notice that VIX play a big part as i brought it when VIX is low as compare to today. I choose these OTM contract because it is relatively cheap like around 1k + per contract. The total slippage between the 2 set of trades is roughly around 40cent - 60 cent which i find it quite cheap. As im writing this post, google just drop another 3 bucks. 8-)
News is the catalyst for this strategy to work!! ;D
Wanna say thanks to Jack and Chiu for telling me more about my this strategy as i can buy cheaper option (OTM) and also take note about the IV , VIX thingy.
Small notes: This post is not to show that how much i make but to share that this strategy does work and i havent lose money using this strategy ;D
GOOG OCT 540 C -172
GOOG OCT 490 P +268
Net profit : 96
Brought it on yesterday when google around 515
GOOG OCT 530 C -262
GOOG OCT 500 P +368
Net profit : 106
This is the strangle strategy that i used and make a small profit ;D. The above prove that not much different between the 2 set of strangle. I notice that VIX play a big part as i brought it when VIX is low as compare to today. I choose these OTM contract because it is relatively cheap like around 1k + per contract. The total slippage between the 2 set of trades is roughly around 40cent - 60 cent which i find it quite cheap. As im writing this post, google just drop another 3 bucks. 8-)
News is the catalyst for this strategy to work!! ;D
Wanna say thanks to Jack and Chiu for telling me more about my this strategy as i can buy cheaper option (OTM) and also take note about the IV , VIX thingy.
Small notes: This post is not to show that how much i make but to share that this strategy does work and i havent lose money using this strategy ;D
Sunday, August 26, 2007
FEAR in Trading
What is FEAR ??
Fear in its myraid forms is the most uniquitous of trading emotions, followed in a close second by its partner, greed. So common are these two emotions that they have become cliches to represent in simplicity the whole of the complex trading experience. Fear in a nutshell is something that we afriad, worry and also dun feel at ease with.
We fear of everything, from small losses to total financial ruination, even when we are winning we also fear that we will lose all the money back to the market. We fear failure. We even fear success. We fear of unknow, and in trading everything is unknown because the future is not knowable. We fear the news, and we fear there will be no news. In a nutshell, we are afriad or we are afraid we will become afraid.
Fear in its myraid forms is the most uniquitous of trading emotions, followed in a close second by its partner, greed. So common are these two emotions that they have become cliches to represent in simplicity the whole of the complex trading experience. Fear in a nutshell is something that we afriad, worry and also dun feel at ease with.
We fear of everything, from small losses to total financial ruination, even when we are winning we also fear that we will lose all the money back to the market. We fear failure. We even fear success. We fear of unknow, and in trading everything is unknown because the future is not knowable. We fear the news, and we fear there will be no news. In a nutshell, we are afriad or we are afraid we will become afraid.
read more..."Applying fears to hopes, and hopes to fears, Still losing when i saw myself to
win" by William Shakesphere
Saturday, August 25, 2007
Terrible Trading week
My pitfall on GS
This week is the most terrible trading week for me. From making 30% of my partfolio till losing 20% of my partfolio. What i really did wrong is my psychology.
What really affect my psychology are the following factors...
- Greed and Fear
- I cant scalp too many time due to the small account
- Let my emotion take control of my trading system
My mistake mainly come from the fact that im greedy. I have 2 scalp which can make 50 buck respectively but i didnt not profit take as make a lost of 150 each. I let my scalp to run over next day which affect my whole trading system. I lost quite alot of money on time decay as im holding on to my sept contract put which at first making 1.3k last thur when it hit 158 and when friday open i make a lost of 200 buck then i can make back 100++ buck on the day itself and monday but i did not take it.
After this week, it really prove me that trading need the right frame of mind and the right psychology if not you will be beaten by the market. Always trust the indicator and the system that you have set for yourself. If you let your feeling take control of your trading you will difinately suffer from it.
This week i didnt trade on google as im too focus on GS. Google has been doing quite well recently and i guess it will pause for a while and rally up. If google break above 530 and the market is doing well i will just buy a long call. Recently the trend of google is it will react according to the nasdaq which it dun usually does it.
i will be watching GS too for the next week as it is going a sideway trend which might break up or break down depending on the subprime issue.
Anyway im still quite happy with my trading no doubt i make a loss of 20% of my partfolio. I will do better next week and not let my feeling take control of my trading.
Happy Trading =)
This week is the most terrible trading week for me. From making 30% of my partfolio till losing 20% of my partfolio. What i really did wrong is my psychology.
What really affect my psychology are the following factors...
- Greed and Fear
- I cant scalp too many time due to the small account
- Let my emotion take control of my trading system
My mistake mainly come from the fact that im greedy. I have 2 scalp which can make 50 buck respectively but i didnt not profit take as make a lost of 150 each. I let my scalp to run over next day which affect my whole trading system. I lost quite alot of money on time decay as im holding on to my sept contract put which at first making 1.3k last thur when it hit 158 and when friday open i make a lost of 200 buck then i can make back 100++ buck on the day itself and monday but i did not take it.
After this week, it really prove me that trading need the right frame of mind and the right psychology if not you will be beaten by the market. Always trust the indicator and the system that you have set for yourself. If you let your feeling take control of your trading you will difinately suffer from it.
This week i didnt trade on google as im too focus on GS. Google has been doing quite well recently and i guess it will pause for a while and rally up. If google break above 530 and the market is doing well i will just buy a long call. Recently the trend of google is it will react according to the nasdaq which it dun usually does it.
i will be watching GS too for the next week as it is going a sideway trend which might break up or break down depending on the subprime issue.
Anyway im still quite happy with my trading no doubt i make a loss of 20% of my partfolio. I will do better next week and not let my feeling take control of my trading.
Happy Trading =)
Subscribe to:
Posts (Atom)
