trade repair 9 and lessons learnt

Was overall a good experience as I wanted to practise actual day or swing trading of options. but trade 9 is likely to be the last repair as I have reached the loss I am happy with. I prefer to stop monitoring the repairs for this stock and choose another way to continue my practice.

IN MY trade repair summary,

1) when stock price is above 120, sell call, when price drops towards 100, close.

2) when price is below 110, sell puts. Close when price moves toward 115 or above.

3) when price moves below 100, close the call and sell another put.

4) should the price falls below 90, take a risk and sell another put.

5) didn't hold more than 3 options max in preparation for assignment.

6) didn't buy calls or puts as I prefer to be a seller.

7) no plans to sell the stock as it is expected to rise in the coming 2 weeks and sentiment will be good.

8) keep monitoring the change in sentiment to adjust my price if necessary at which to sell a call or a put.

9) there are signs of resistance and support, but I can't always see the highest or lowest price, and that is ok. it is a sign to move on to the next stock that has a clearer trajectory.

10) technicals have to be combined with market sentiment. sometimes, it gets hard to see both and waiting is necessary for clearer signals.

EMOTIONAL journey:

1) hope since NVDA is a growth stock with strong sentiment that price will eventually move to 120 and above. so if my trades fail, and I see reds of more than 3k for both options and stocks, just hold and wait.

2) I rarely felt fear, just the hopelessness of waiting to place an order without a time limit in sight for the day. I can't say the same for other stocks I am not familiar with.

3) a lot of sleepiness waiting for entries and exits.

4) frustration when options moved slower than prices. it's roughly about a 50 cent move in options for a dollar move in stocks.

5) stuck when I am in between prices, i.e, it's not time to buy or sell another put or call and all I can do is to monitor and wait.

6) hopefully I don't need to do it again but it is hard to say. should the time be bad and price keeps moving towards 80, then I have to redo another round of repairs. 😴

7) patience: there are definitely better ways of making money that I haven't found yet and I won't find them so fast.

6 MAIN lessons learned in the process that I must remember:

1) shift my attention to my favourite stocks that worked and continue to work, or anything that is on clear upward trend with room to move further. it is a waste of time to keep staring at one stock.

2) trend is and isn't your friend. I can make a researched guess and it can still go south. A trade plan includes predicting the trend and then adjusting it to follow the price action, which can also suddenly change direction, and re-adjustment is required.

3) sell the stock when I have the chance when sentiment is turning bearish, even if it's for a tiny profit. it is better than having to do weeks of trade repair.

4) differentiate a bull trap from a retracement and a bear trap from an actual flush to avoid unnecessary worry. retracements are normal and patience is needed for the road back up. it is time to close when the position is losing money.

5) I am just a small cap, so never play on margin. do not play the stakes too big; small to medium is better. it is easy to celebrate big wins and hard to close big losses. And home runs are harder to come by than small wins.

6) learn the concepts, not the profits. the above is just a drop in the ocean of the learning experience. it is silly to think I learnt a lot and I am ready for more. I must continue to take the time to reflect upon what I have done and what I can pick up from there.