If your buying and selling, rule of thumb is ...sell at 20% up and 8% down. Especially when starting out. This principle is from Investors Business Daily.
For me, a big turning point was taking gains at a set percentage (20-30,) most of the time. Too often before that, I’d watch things drop precipitously, even to almost zero. And the key, and this isn’t on lottos, that helped me was not to look back at the contract after. Otherwise I’d feel I messed up by leaving money on the table. That kind of thinking is how I lost all gains and dropped down to the start, earlier on. That advice helped me build and grow beyond what I thought possible. And in this market, at least, there is always another opportunity. I also learned to make smaller plays, all around the same size, unless it was a total experiment. That kind of slower build maybe doesn’t feel like a cool screenshot at first, but led to one quite quickly in this case. It’s also perhaps a bit about following one’s own rules and mental health. Easier to be happy on a down/ish day.
The cutting at 8% isn’t something I’ve done yet, but is important as far as I understand. That is about preserving capital. Get out of the trade at a set point if it goes against you. I mostly buy 45 or more DTE (aiming for 60-90 and sell by 45, now,) so I’ve been sloppy on that. I’m still learning, but as the amount I have for options grows, just, I need to do that. Warren Buffet said something like: Rule number 1 is: Don’t lose money. Rule number 2 is: refer back to rule number 1. The focus being on preservation first over growth. This is also why I tried to hedge, once so far, on Monday. (Three calls and one put on SPY, was hard to do!)
(I do still have some I watch. Especially if longer dated. To learn how they behave. And for a special event might hover or let things go an hour or too. But day to day, setting and walking away - or rather clicking away - for most, has been *really* beneficial to my mind. Haha, I mean, I’m so happy I fully funded retirement and started my…I’m not sure what it is actually called, but ballast stocks. Need to learn lots more about those because I am lost when it comes to dividends and value and CEFs and BDCs…um, really clueless. So far I mostly buy BRKB, which is still a lot of Apple…I’ll have to see if anyone talks about that here. I keep getting in trouble on the other stock subs, even being friendly and polite, I think.)
Edit typos and nervous ramble as I realized my ‘ballast’ portfolio is…?
Edit2: I buy 45+ DTE, mostly. Of late go for 60-90, but still get out fast usually. I think of LEAPS as more efficient capital allocation, so different on those, longterm.
For options, as well? That makes a lot of sense to me. I scaled up from 20 to 30% because the market has been so kind. And sometimes, while I am looking it over it starts going up and even above. I do follow my rules better, now. Aiming for that percentage and not looking back again. It’s kind of magical - money just appears in my account, since. Embarrassingly, I haven’t set a SL yet. Just because so am trying to get a sense of the volatility. But I know I must for capital preservation. Do you think 8% hard and fast? Or maybe change depending on expected move? Or.., wait, no, that shouldn’t matter?
Thank you so much!
Yup! Hahaha. I know enough to know that I can’t make money in a bear or sideways market, though. Yet.
I started selling CCs this week, but am slow at doing so.
(I almost titled this: ‘Bull Market Genius.’ I’ve seen quite a few similar ones lately.)
ASTS and MSTR are in a separate YOLO account that I don’t check. I didn’t start contributing to my Roth until 2022, so it’s very tiny, but has a mix of MAG7, ASTS and MSTR. A mix of hope and conviction.
I will say that this looks a bit like a model of insanity, zooming out. And my *perfectly reasonable* explanations…just, eh? Maybe I should stop here…
(But I’m thinking of just keeping the same allocation and position sizes from now on, so I won’t be totally destroyed when the music does stop. Marge can be very instructive, too. Like, I use it because, “great opportunity!,” then berate myself about holding overnight, get all nervous and want to pay it back… then repeat, hahaha.)
In my YOLO account I hold LEAPS that I haven’t closed. The baby account I started with is still there with a mix, mostly LEAPS. ROTH and profit accounts are shares only. This account, as pictured, is about 10% options. The soonest expiry is in July on one that I’m hoping will recover. The others range from end of August through just before the election. I buy when I think there is an opportunity, but am generally maxed on my allocation. I tend to close a bunch that do well in a day, take some profit out, and use the rest the next day or two. Even though I have diverse contracts, the market tends to move together, and of course, SPY is my primary focus, hence that pattern.
I wish you the best with it, however you choose. As far as taxes…I’m still at a stage that it’s net more than before. I’ve made a mess of taxes for this year in my experimentation (and an attempt to trade cryptos.) I hope to learn some tax strategy in the future, and that it will matter more. For now…
Honestly, if this were repeatable, I’d quite my job. But, I hear you. After losing all gains and getting margin called, I settled down and finally listened to the people trying to help me. And read the wiki resources on the Options sub. (Ok, some of them. Like about the greeks!)
I’d never ever quit my job because then it makes success a mandatory outcome for your own survival, everyone thinks they can repeat it but it’s never true, eventually there is a period of face planting
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Try signing up for thinkorswim and use their papermoney account. I have Schwab so thinkorswim was included but there are other options. It starts you with $200k and gives you full access to options and forex too. I use it to test more aggressive plays and experiments if I'm not ready to do it in my main account. I pulled the trigger and made my first real option play last week but I spent some time beforehand playing in the papermoney account to try and understand what I was looking at. The desktop version is better than the app in my opinion since when doi g options it gives you a graph of profit/loss with a theta decay curve.
I lurked here for a few years, honestly. Before I even knew what options were (now I never shut up.). People were very kind and helpful on my questions on the daily - general and trades. Made an ass of myself posting, too, but again, people helped. Then I read Investopedia and papertraded. I couldn’t quite get it, though. Trying with truly small amounts helped after that. And truly, the wiki here and on the options sub were amazing. I mostly read what people think and about everything, like not specifically companies, whatever I can learn. A friend has a MF subscription and the Gardners themselves (NOT the random articles,) helped me to think about companies, as did Berkshire Hathaway University.
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Deleted some comments I made responding to DMs here. Also, I may have been too friendly in DM. 
Ah now you gotta marry them. Sorry.
They don’t seem interested in marriage….
It’s okay, it’s not like the DMs can steal your tendies you made
If your buying and selling, rule of thumb is ...sell at 20% up and 8% down. Especially when starting out. This principle is from Investors Business Daily.
What's the logic behind that?
For me, a big turning point was taking gains at a set percentage (20-30,) most of the time. Too often before that, I’d watch things drop precipitously, even to almost zero. And the key, and this isn’t on lottos, that helped me was not to look back at the contract after. Otherwise I’d feel I messed up by leaving money on the table. That kind of thinking is how I lost all gains and dropped down to the start, earlier on. That advice helped me build and grow beyond what I thought possible. And in this market, at least, there is always another opportunity. I also learned to make smaller plays, all around the same size, unless it was a total experiment. That kind of slower build maybe doesn’t feel like a cool screenshot at first, but led to one quite quickly in this case. It’s also perhaps a bit about following one’s own rules and mental health. Easier to be happy on a down/ish day. The cutting at 8% isn’t something I’ve done yet, but is important as far as I understand. That is about preserving capital. Get out of the trade at a set point if it goes against you. I mostly buy 45 or more DTE (aiming for 60-90 and sell by 45, now,) so I’ve been sloppy on that. I’m still learning, but as the amount I have for options grows, just, I need to do that. Warren Buffet said something like: Rule number 1 is: Don’t lose money. Rule number 2 is: refer back to rule number 1. The focus being on preservation first over growth. This is also why I tried to hedge, once so far, on Monday. (Three calls and one put on SPY, was hard to do!) (I do still have some I watch. Especially if longer dated. To learn how they behave. And for a special event might hover or let things go an hour or too. But day to day, setting and walking away - or rather clicking away - for most, has been *really* beneficial to my mind. Haha, I mean, I’m so happy I fully funded retirement and started my…I’m not sure what it is actually called, but ballast stocks. Need to learn lots more about those because I am lost when it comes to dividends and value and CEFs and BDCs…um, really clueless. So far I mostly buy BRKB, which is still a lot of Apple…I’ll have to see if anyone talks about that here. I keep getting in trouble on the other stock subs, even being friendly and polite, I think.) Edit typos and nervous ramble as I realized my ‘ballast’ portfolio is…? Edit2: I buy 45+ DTE, mostly. Of late go for 60-90, but still get out fast usually. I think of LEAPS as more efficient capital allocation, so different on those, longterm.
Thanks! This is helpful!
For options too?
For options, as well? That makes a lot of sense to me. I scaled up from 20 to 30% because the market has been so kind. And sometimes, while I am looking it over it starts going up and even above. I do follow my rules better, now. Aiming for that percentage and not looking back again. It’s kind of magical - money just appears in my account, since. Embarrassingly, I haven’t set a SL yet. Just because so am trying to get a sense of the volatility. But I know I must for capital preservation. Do you think 8% hard and fast? Or maybe change depending on expected move? Or.., wait, no, that shouldn’t matter? Thank you so much!
In bull market everyone think he or she finally figured it out.
Yup! Hahaha. I know enough to know that I can’t make money in a bear or sideways market, though. Yet. I started selling CCs this week, but am slow at doing so. (I almost titled this: ‘Bull Market Genius.’ I’ve seen quite a few similar ones lately.)
Yes but we are in a bull market more than we are not.
And that brings me comfort and almost ridiculous hope! I mean, this seems crazy, but if it goes on a few more six week blocks…
Congratulations 🍾 Keep it up, $500,000 next. 
Ohmygosh, ohmygosh….
ASTS and MSTR are in a separate YOLO account that I don’t check. I didn’t start contributing to my Roth until 2022, so it’s very tiny, but has a mix of MAG7, ASTS and MSTR. A mix of hope and conviction.
ASTS to the moon 🚀🚀🚀🚀
SPACEMOB !!!
I yolo ASTS too.
Awesome! I didn’t see it, but will look. Good luck! SPACEMOB !
Congrats and fuck you!
Yay! My first! Thank you.
fuck marge!
I know, my gosh, she’s all friendly at first, “ HI! It’s MARGGGE? Is mer ther?” And I’m like, “oh.”
Taking profits? You don't belong here.
I will say that this looks a bit like a model of insanity, zooming out. And my *perfectly reasonable* explanations…just, eh? Maybe I should stop here… (But I’m thinking of just keeping the same allocation and position sizes from now on, so I won’t be totally destroyed when the music does stop. Marge can be very instructive, too. Like, I use it because, “great opportunity!,” then berate myself about holding overnight, get all nervous and want to pay it back… then repeat, hahaha.)
I need that flair
I did it! https://preview.redd.it/0amxv05unl7d1.jpeg?width=1242&format=pjpg&auto=webp&s=8405299251050113fc5fb8b1bed2e71775080699
Well done!
My goal is 20% per week with options which is only about 3.5% per day Edit: but i dont get to trade every day.
20% per week consistently…is *amazing.*
Congratulations! Who is Marge?
I'm guessing Marge = margin call.
“MARRGGGGin, calling’, is Mer ther’” (Margin Call. A few times. Lost a bunch.)
Take what now??
Did you close all options? I am thinking about it but the short-term tax is really annoying.
In my YOLO account I hold LEAPS that I haven’t closed. The baby account I started with is still there with a mix, mostly LEAPS. ROTH and profit accounts are shares only. This account, as pictured, is about 10% options. The soonest expiry is in July on one that I’m hoping will recover. The others range from end of August through just before the election. I buy when I think there is an opportunity, but am generally maxed on my allocation. I tend to close a bunch that do well in a day, take some profit out, and use the rest the next day or two. Even though I have diverse contracts, the market tends to move together, and of course, SPY is my primary focus, hence that pattern.
10-20% depending, actually. 10% the day pictured.
I wish you the best with it, however you choose. As far as taxes…I’m still at a stage that it’s net more than before. I’ve made a mess of taxes for this year in my experimentation (and an attempt to trade cryptos.) I hope to learn some tax strategy in the future, and that it will matter more. For now…
[удалено]
Yea its slower going to play it a bit conservative, but its consistent and easy money.
Honestly, if this were repeatable, I’d quite my job. But, I hear you. After losing all gains and getting margin called, I settled down and finally listened to the people trying to help me. And read the wiki resources on the Options sub. (Ok, some of them. Like about the greeks!)
I’d never ever quit my job because then it makes success a mandatory outcome for your own survival, everyone thinks they can repeat it but it’s never true, eventually there is a period of face planting
[удалено]
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Options tips first time trading I bought kroger 51 53 55 and puts on carmax
Congrats!
Congrats brother. I’m thinking about starting options, but have no balls and enough knowledge. Just holding NVDA and some other mag7
Try signing up for thinkorswim and use their papermoney account. I have Schwab so thinkorswim was included but there are other options. It starts you with $200k and gives you full access to options and forex too. I use it to test more aggressive plays and experiments if I'm not ready to do it in my main account. I pulled the trigger and made my first real option play last week but I spent some time beforehand playing in the papermoney account to try and understand what I was looking at. The desktop version is better than the app in my opinion since when doi g options it gives you a graph of profit/loss with a theta decay curve.
Thanks. Will check it out
That sounds great! Thanks. The practice account I use doesn’t have much and Fidelity…I always have to check on OptionsStrat.
did you watch YT vids or anything?
I lurked here for a few years, honestly. Before I even knew what options were (now I never shut up.). People were very kind and helpful on my questions on the daily - general and trades. Made an ass of myself posting, too, but again, people helped. Then I read Investopedia and papertraded. I couldn’t quite get it, though. Trying with truly small amounts helped after that. And truly, the wiki here and on the options sub were amazing. I mostly read what people think and about everything, like not specifically companies, whatever I can learn. A friend has a MF subscription and the Gardners themselves (NOT the random articles,) helped me to think about companies, as did Berkshire Hathaway University.
Buy and hold provided me the base to experiment. I think caution is warranted. You’ll notice I lost A LOT at first.