For Love Of Trading

It's 2:30 am Sunday morning and I still haven't gone to sleep. I will be waking up the kids in 5 hrs so we can hit 1st service at church. Starting to get a little tired. What do I look like at 2:30 am? That's what I look like.

What I have found to help me in my trading was though my desk is not too far from my bedroom, that I actually do need to get up, take a shower, get dressed as if I was going to a place of business outside of my home to work. This puts me a far sharper frame of mind.

As my kids will both be in school starting Monday, it will give me better time to focus and think clearly without the interruptions, which I am so looking forward to. Don't get me wrong, I do love my kids immensely, but sometimes in the middle of a trade being executed, distractions can be costly and have been.

I do very little intraday trading unless I'm doing a news or earnings play. Most of my positions last 2 days to 3 weeks.

For me, I've learned that I do not need to take big positions to make decent money in the market. Since I play the options on stocks > $100 with stocks that move and good volumes, with 1-5 contracts, I can make some decent returns to support myself and my children. That keeps my commissions low as well as my capital risk low.

Can't remember who I was reading today, but he talked about being patient and setting up yourself for opportunities. Well, that's basically what I do. I love compression patterns of all types and setting myself up to wait for breakouts. I'll ride breakouts for as long as they run and get off when they stop. That's really my favorite way to make money because you get in when volatility is low and as it's breaking out, the volatility increases, which increases my option pricing. As long as I've charted things correctly, as it begins nearing where it can possibly reverse, I watch the option pricing to see if what I'm seeing is correct or not. If the option pricing isn't deflating, I'll keep my stops back and give it more room to run. If I begin to see the option pricing deflating, then the option makers are possibly anticipating a reversal and if signs on the chart also indicate that, then I take my profits and jump ship.

Sometime I'm wrong and have jumped out too early to find that much more profits could've been taken, however, cash in my account is cash in my account and I LOVE it!!! If the option pricing is way overpriced, I'll stay out or maybe jump back in for an even smaller position just to be in the game if the next target is far enough away. A good example of that recently is AAPL. In order to help me here, I will readjust which option I get in and will not get in for what I got in prior.

It's now nearly 3 am and my children are going to want a mommy that isn't all tired and sleepy for church. They deserve a mommy who is there for them.

Later this afternoon I hope to post charts of the 10 stocks I trade, maybe doing a log/arithmetic comparison and see how this goes for me. However, I have lots of errands I need to run, so we'll see.

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