Tuesday, May 18, 2021

Distraught.

Hello all,

I've been trading options consistently for the past few years. Just following market/stock trends and purchasing calls/puts and then selling within 1-30 minutes.

Recently I had an event occur where I lost almost 11% of my portfolio. I was unaware of options automatically executing if they are .01 in the money. This happened to me Friday night and before I knew it I had 500 shares of RIOT. Weekend news blasted bitcoin. My entire mind revolved around getting out of the trade because of how exposed my portfolio was. I sold the shares yesterday for a loss. If I would've held until today, I wouldn't have lost anything.

I'm now in a position of just watching the market and questioning my entire trading strategy. Do I continue to trade options? Do I start funneling my money into stocks and hold? Do I just throw everything into VTI and step away from trading forever? (The last option I really do not want to do.)

At one point I felt great for following the rule of preserving capital, but now seeing RIOT climb, I just feel terrible for having paper hands. I may be a good trader when it comes to following the rules, but it has led me to feel worse.


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