This is my PNL curve for 2 months. Started with about $600 and was touching $1000 mark many times, until end of July started to trade BYND. More about ”fake meat” a bit later….
As you can see, I had a lot of ups and downs, and finally blowed up and had to top up account again.
Both two months I was just trading without proper risk management, but now its the time for round 2!!!
I choose the options because options account don’t require a large account, ofc its better to have larger account, but $500 is fine too, as far you have proper risk management. What I didn’t have…
Usually on trades I was risking too much. Most of the times I had luck on my side, but not always.
If you are trading the right stocks returns on those are just like in small caps.
And one more thing I like about Options, that you can lose only maximum what you have bought. So if you buy CALLS for $200, you only can loose MAX $200. Not like in stock trading, where you can loose all your account if you dont cut the loss.
For Options trading I am using Interactive Brokers account, very powerful platform what is meant not only for options but for trading and investing in general. But for Day trading and Investing they have bigger account minimums. Im looking forward to investing at one point too, It’s just something what needs to be done for future. If I am trading stocks, I should invest too… But that’s another story.
Ok, back to Options.
How I said earlier, these two months I had bad risk management or it wasn’t at all. Now recently, I joined SMASH THE BID community. Smash himself is a very good Options and Large cap trader. Just by looking in first day in his video library, I found out a lot of important things. And he has a good risk management strategies.
To get nice gains in options, you need a stock to do quite big move too. Like for example these stocks.
These are the stocks I am playing most of the time. TSLA, NVDA, NFLX. I know AMZN is doing good moves, but options are quite expensive on that one.
Was trading trough the earnings season too. Favorite plays from earnings – TWTR, SNAP, ROKU, and all what was mentioned before.
Really NFLX, TSLA, NVDA are my favorites, with NFLX in first place. The stock moves daily at least $5 what is huge moves.
My biggest mistakes.
- Buying too much in out of money – by having a small account most of times was looking for strikes too much out of money. And then when time comes closer to expiration and stock still have a long way to strike price, option is loosing value. Now i would recommend to buy strikes closer to real price max $10 distance, the less, the better.
- Options loosing value – happened a lot of times with BYND puts. I even was holding puts before earnings, then after earnings when stock tanked I was supposed to be up $1000 but ended up only with $100. What usually happens with options after earnings, they loose value super quickly. I didn’t know it until now… BYND was strange itself to trade, most of my out of money strikes lost value and I ended up losing money even if the stock was moving my direction.
- Totally no risk management. Really I was only trading, trading all around with no clear strategy. Sometimes just entering cause market was falling or advancing. Now I found excellent risk management strategies in SMASH THE BID community. I feel like it gonna turn my options trading upside down.
- Gambling – trading without a setup. To be or not to be, that is the question…?
I will admit, I got too carried away too. Most of the money lost was on BYND. ”Fake Meat”. Saw how some people was saying, this is going to $1000, similar to TLRY some while ago. Of course its a different situation, but…
Most of the money I lost was on BYND puts, was thinking, it has to finally fall, but it’s just climbing higher and higher.
When finally it was falling, after it posted Q2 earnings results and right after 2 offerings, I bought puts too much in out of money and even if the stock was falling lower, puts lost their value. What eventually killed my account. As i couldnt buy IN THE MONEY strikes(expensive for small account), I bought out of money strikes. Now I realize, better would be touching it at all if I cant afford In the money strikes…
I didn’t fail, I learned a lot.
I am a big fan of Tony Robbins and I learned a lot from him and now that knowledge is moving me forward. I like how he said: ”I fail only when I give up” But thats unlikely to happen cause I am always learning and improving and giving up is not an option for me.
Now I am ready for ROUND 2 options trading. Joined SMASH THE BID community. If you want to be the best – learn from the best. Already can’t wait to use his risk management strategies.
Will try to post my results more often. Usually I am quite busy at work and dont have time to post recaps, but I will do my best. Maybe just to record a short video of trades and post it to youtube.
Anyway, Thanks for who is following my journey. Every day one step closer to the dream, goal of becoming professional day trader.