12-19-2021, 10:01 AM
(12-19-2021, 07:58 AM)fenders53 Wrote: I can't say that I am a great trader, but I do enjoy it. I have become more risk averse through the years. I really try to never trade a stock I'm not very OK with just owning long-term if things go wrong, because someday it will. My trading would be more accurately described as attempts to add on significant dips and trim if he runs a little too fast, around a core position normally. Not forcing trades is easier said than done, but it keeps me out of serious trouble. Impulsiveness got me in trouble long ago. If I break my rules, the bet is usually small because I know the day will come when I miscalculate the general direction of the market and it may well last a long time. What I do with option sales is really no different. I just lose some control over my core long position sizes for a time.
Same here - trading around a long position is my main move. I don't call it "going wrong" though. I call it finding a pattern for a specific stock and know that at some point the pattern will change. My current trade I know I'd do if I had the IRA would be to go back to WSM doing the 170/190 channel. At some point it will go above 190 and stay there. Then I either have to wait for another channel to set up or just stop. And if it stays under $190 so what? I like it, happy to own the shares, just using the volatility to get a little extra. I used to trade MU mercilessly based on RSI. And now it even pays a dividend. I'd likely at least take a peek at every company I own to see if there's something worth exploiting. One key for me - if you're going to trade shares, trade them. If tomorrow's ex-div and it goes above the sell price, I sell. Those shares are first for trading. Dividends are a nice bonus but not the main purpose for those specific shares.
Takes some work but I don't find it complicated - all it uses is the principle of, "The best indicator of future behavior is past behavior." And know that at some point, unlike with people, the behavior will change.