03-31-2021, 07:18 PM
This should be a good thread. We'll get a few more of the guys that understand options to check in, because you are indeed playing options with no knowledge of them. You can correct that. I know I owe you a vid link soon. You don't have to be an option guru and you don't have to be a technical analysis guru, but flying totally blind isn't investing. You are currently sitting at a poker table in Vegas with sunglasses on hoping it goes your way. You'll get killed without a plan and it likely won't take too long.
Looking at the NAIL chart made me pee myself just a little lol.
Your plan can be a work in progress. Heavily invested in any of this before you educate yourself is risky, but some simple rules are a great step forward.
Back to Mike's point it definitely needs to be mechanical to have a chance at success. You have to minimize the natural emotions of fear and greed. You are probably feeling fear on LABU, and greed on SOXL. I happen to think SOXL works out in the midterm from here. We'll see.
A few more bits of advice is diversify the 3X leverage game. If they all move together it's way too much to manage at one time when your port is getting beat up. I would 3X something that goes counter your most aggressive positions. But that's just me. I don't prefer to lose sleep when it all goes to hell and I bet the wrong direction. I run multiple strategies and a believer in "baskets". Whenever a part of my port is getting punished, something else is almost always holding the line for the day. I'm just not OK with my port dropping 5% in a week when the overall market is not anywhere near that bad. That 5% can be 25% in a few weeks if you are leaning too hard in a sector direction.
Looking at the NAIL chart made me pee myself just a little lol.
Your plan can be a work in progress. Heavily invested in any of this before you educate yourself is risky, but some simple rules are a great step forward. Back to Mike's point it definitely needs to be mechanical to have a chance at success. You have to minimize the natural emotions of fear and greed. You are probably feeling fear on LABU, and greed on SOXL. I happen to think SOXL works out in the midterm from here. We'll see.
A few more bits of advice is diversify the 3X leverage game. If they all move together it's way too much to manage at one time when your port is getting beat up. I would 3X something that goes counter your most aggressive positions. But that's just me. I don't prefer to lose sleep when it all goes to hell and I bet the wrong direction. I run multiple strategies and a believer in "baskets". Whenever a part of my port is getting punished, something else is almost always holding the line for the day. I'm just not OK with my port dropping 5% in a week when the overall market is not anywhere near that bad. That 5% can be 25% in a few weeks if you are leaning too hard in a sector direction.