Author: Chris Hood
Be sure to check out new episodes of my video podcast each week, where my ace pupil Brian Jones and I talk the ins and outs of options trading- and give you insights and strategy that you can immediately put to work for you in the markets.
This 25-year old kid was trying to kill me.
What started out as sparring had turned into a deathmatch.
I’ve been training jiu-jitsu for almost as long as he’d been alive, but this eager, athletic white belt didn’t care.
It was one of those days where I was utterly exhausted. Honestly, I thought about not even going to class…but I dragged myself down there anyway.
“Even some light training was better than none, I thought.”
I went for triangle choke after triangle choke, but my timing was off. He managed to power his way out. It was frustrating, but I was determined to catch him…
Trading often feels just like that roll.
Last year TSLA smacked me around quite a bit – to the point that I thought Elon Musk owed me a new Model S. It seemed that every trade went wrong.
I lost money on calls spreads, put spreads, and butterflies. I felt like I was swinging for the fences at a pro boxer. Looking like a fool as he bobbed, weaved, and countered me with a solid punch in the gut.
Looking back, I just hadn’t found my rhythm. My timing was off.
TSLA’s daily volatility, and the magnitude of the moves, eluded my best efforts to score profitable trades. I was winning on nearly every other ticker than this one.
I cut my losses quickly, but each one chipped away at my P/L for the week. So I knew I needed to troubleshoot and refine my signals.
If you don’t analyze your losers, you’re doomed to repeat the mistakes. That’s why my system works as well as it does – I constantly improve it.
I suppose Elon can keep his car because TSLA has been good to me this year.
Earlier this week, my subscribers and I reaped the rewards of proper analysis and timing with a beautiful 68% gain on DKS. A result we couldn’t have gotten without getting in just the right time with precisely the right trade.
When your positions don’t work out, you cannot lose your cool. Screaming at your computer or sulking in the corner won’t help.
The market doesn’t care about you, and the guy on the other end of the trade who won definitely won’t lose any sleep.
Take a minute to see what went wrong. It could be that you went in a bit too soon or too late.
Don’t hesitate to put on the same trade on the same ticker the very next day. If your indicators say go and your rules are met, this might be your ticket to some solid gains.
Too often, traders get stuck in a negative mindset after a loss. They lose confidence, get mad at the company, and blame the market.
I’m here to tell you that won’t help.
Each trade is entirely independent of the previous ones. Follow the same rules, and there’s no change in the probability of success.
…now, let’s get back to that grappling match.
Eventually, I sunk in a triangle that he couldn’t muscle out of. I let him get tired, and waited for the right moment to execute my attack.
I held and he struggled in vain like a trapped animal, but he had to tap.
After teen failed attempts I finally got my timing right.
Patience, technique, and just a little bit of old man strength, won the day.
P.S. Don’t forget to check out my colleague Dr. Kent Moor’s Sigma Trader system. This week he and his subscribers cashed out a nice 117% gain on LCID in only five days. Click here to find out more.