I try as best as possible to keep it real and reflect the true realities of what happens in my trading and service.
It’s so very easy just to talk about the good stuff and leave the bad stuff behind, but that’s just not reality. Perception is everything in this business.
To that end, as an options trader (not a hedger) there will be losses, and since the odds of the game are stacked highly against me those losses can add up quickly if I’m not agile, quick and accepting. I’m not one with a big ego anymore about trading, I accept the results but also trust my judgment in reading chart patterns/technicals – saves me MOST times.
That is my edge. I can absorb a loss from time to time if my winners are big enough to offset and my losses are not swamping my gains. Just this past week I posted a few of them, some winners, too. It happens, but I kept the size right and managed the trades accordingly.
Which brings me to taking losses. For some, devastating to the mind and ego. I get it, who wants to lose? Nobody, but in options trading this can happen often, so I just let it go – financially, mentally and emotionally. Trades are not people, they don’t have a memory, rather they are a portrayal of our own emotions.
Can you take a punch? Will you counter with an uppercut? Will you leave yourself wide open and vulnerable? These questions need to be answered. I take a more defensive approach to my offensive game, taking a loss in stride as it’s just part of the game, reflect on it for a VERY short time and just move on, taking the next trade. I did this recently with some plays mentioned here. Out of sight, out of mind – looking for that next trade. Can you do it, too?
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Bob Lang has been managing private options trading accounts for clients since 2004 and providing subscribers with guidance on trading options for income at Explosive Options since 2011.
