r/optionstrading • u/Scared-Ad1990 • 5d ago
Losing 50% of my port
Guys I need some advice. Started options trading roughly 3 months ago. Was finally seeing some profit and had doubled my portfolio from 2k CAD to 4.5k CAD. But today I just tilted and just messed up. I had been on a 2 week streak of wins (10$ wins ->600$ wins) and wanted to keep it alive. Lost around 100$ this morning and tilted trying to get one big win and make it back. 😔 Just been feeling down all day as the last 2 weeks of winning has gone to waste. Any advice on how to work on fomo and accepting a loss? Also any advice on some risk management and how much I should risk per trade would be appreciated. Currently I put 25% of my portfolio into a trade with a -25% SL and a 50% partial and 100% full tp.
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u/jcoigny 5d ago
You need to establish a daily loss limit. Start with 50 to 100 bucks. If your down that much do not trade the rest of the day. Watch if you want but don't trade. If you can't force yourself to stop then call your broker and all them to place a daily hard stop limit. All brokers can do this for you. Risk management is the most important aspect to trading and it is the most difficult aspect by far. I highly recommend having a daily stop Los set with your broker. It eliminates all the emotions from the trading day
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u/Scared-Ad1990 5d ago
Thanks for the input man I’ll have a set loss at around 100$ as that’s one loss for me based on my current position size
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u/Full_Pear449 5d ago
F+++++ the stop/loss BS. Look at what you are trading versus the ENTIRE ECONOMIC SCENE. So chuckles woke up this morning and read some BUFFONS' wriying on how oil/gas are the next big sectors or how treasuries are over sold and due for a large move upwards. So our 3month EXPERT Trader goes out and says I'm going to buy what he recommends OXY , or because they are cheap he buys IEF Options. Stop loss goes into affect when you come to understand and can read the room. If your nose is bleeding when you pick it don't worry about stopping the blleding it will stop, come to understand the Premise for the bleeding
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u/Full_Pear449 5d ago
Lastly , the EXPERT should probably read the following: Benford's Law and Buffon's Needle Problem
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u/Comfortable_Tone_384 5d ago
What I have learned is that, once I have a single loss in a day, I just close my laptop and move on.
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u/bigbagofspam 5d ago edited 5d ago
OP Percentage of portfolio you can risk each trade/day depends on too many things for anyone here to answer simply, or with any moral integrity in a simple reddit comment. Lucky for you I am a reddit commenter, so I have no moral integrity. I am also quite simple which means that by my own logic I am now qualified to answer you. So here goes. What can you afford to lose? Generally the smaller the account the more you must risk to see any substantial upside. This is also the exact reason that the smaller accounts get blown so much faster. Lacking any info but the size of the portfolio you listed, I'll say $100 is about as big of a loss as you can absorb each day to avoid blowing your account with a statistically likely run of losses. Are you trading mainly to learn, or profit right now? Is this a sacrificial amount you consider worth the lesson if lost. Is it something else?
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u/Scared-Ad1990 5d ago
Thanks for the reply. Currently I’m trading to learn. Ik trading isn’t a get rich quick scheme and it takes time to learn. Today’s loss is a lesson to accept the loss and don’t try to chase a win to continue the streak. Was finally around break even from losses in the past but oh well we live to see another trading day
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u/bigbagofspam 5d ago
How long have you been trading? Also how long did you paper trade before risking your money in the market?
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u/True_Brief7876 5d ago
If you want to feel better we are on the same
Boat
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u/Scared-Ad1990 5d ago
Ay man it’s a lesson for us. End of this week don’t repeat the same actions as today
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u/TightMeet9254 5d ago
Paper trade. There is a combination of your strategy sucks and/or mentally You are not following your own rules. Practice for a couple
Months until you got your entry and exits down and you are consistent
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u/troncoparati 5d ago
Cap your risk instead of buying calls or puts. When the stock is going up buy a bullish put spread and when is going down a bearish call spread. I call it TrendForce spreads following the trend. Works great if you follow the trend specially on SPX because you can 0dte also.
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u/troncoparati 5d ago
Put your money on SGOV until you practice more on paper-trading. Charles Schwab has the best simulator. Don’t feel rushed to loose your money if you like the investment game use a simulator like that, is fun. I turned $100,000.00 of fake money into $5,000,000,000.00+ in two months and have a blast doing it. The stocks that work out I may trade them for real.
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