By: Steve Smith
This week was a real mixed bag for me both personally and professionally. On the former my kids spent the past days with me here in too hot and humid Florida but we had a blast. My daughter, 16, just got her learners permit and loved being able to practice driving on the straight and quiet beach roads rather than the clogged crossways of Manhattan. Against my better judgement I also let her drive on I-95 when we went to visit my brother in West Palm. She proved wiser, and more mature, than me when after two exits she said she felt uncomfortable as maniacs whizzed by, passing on both the left and right lanes in excess of 90 mph. We pulled over and I took the wheel.
There is a trading lesson in here; like cut your losses. As I wrote on August 10th, it’s important to know when to cut your losses in trades. Note – the most successful traders in the world have losing trades. They’re successful because they know when to admit they’re wrong and get out.
From my son, 14, I got to see the difference in outcomes between being enthusiastic and embracing an activity compared to being fearful and shying away. He likes sports, is a decent athlete and has become proficient in soccer and basketball. But he’s never really had a chance to play much tennis. Last time he was here in April he was terrible. He pouted, blamed his racquet and basically said, “I don’t want to learn any proper technique, I just want to hit the ball.”
I got him to commit to taking lessons back in NY and it made a world of difference; he was willing to slow down, focus on the mechanics rather than be concerned if the ball was in or out and was having fun. And yes, he took a couple of games off me.
The point being, stick and trust your process. The learning curve or success is not always linear but making a commitment usually brings better results over time.
As for the Options360 trading service, our iron condors in Home Depot (HD) and Roku (ROKU) we established earlier in the week are working well as each stock settles into a range and theta is doing its thing dripping money into our account.
Have a wonderful weekend!