• Trade based on levels not underlying $ •
Trade performance today was abysmal and, frankly, embarrassing to share. But I’m committed to doing so because I want to be transparent & thorough in review of my performance.
Today was my second day trading options on stocks other than Apple. I failed to trade based on underlying stock price action and took quite a few losses because I’d set a limit stop loss on the options based on how much I wanted to lose, not based on how the underlying instrument moved. If I’m not comfortable with the swings in the option based on the underlying support/resistance targets, then I shouldn’t trade it. I also could have saved myself from some of the pain had I waited for stronger confirmation on the issues I was trading, and not entered choppy situations. No need to read all of the below but I want it posted for posterity.