If you’ve read this blog for a while, you know I’ve shared many of my own lessons that I’ve learned over the years. At this point, I have been trading and counting full time for 16 years. I’ve made every mistake – some more than once. As much as I appreciate my college education, nothing I’ve learned could prepare me for the daily struggles I face as an options trader. I’ve had to take a break from trading more than once and I’m here to tell you it’s ok.
Trading is exciting and exhausting
I love to act. I love the excitement and challenge of deciphering the charts and specs so I can make a living. I always ask myself, “Do I have an advantage? Can I make money today and build my fortune for the future? “I put my skills to the test every day. Usually the result is good, but sometimes it is … not. Sometimes I wanted to hit my head against the wall. “How did I get the signals wrong?” I mumble to myself.
Sometimes you are the hammer, sometimes you are the nail.
To be awesome, I rely on charts, technical indicators, sentiment indicators, and time-tested historical data. Analyzed together, I can create a nice story about future action in a stock or index. This has been my approach for years and I’ve been largely successful (I’ve even written a book about it!).
Just because I think I have a clear view of a trend doesn’t mean my trade will be successful. Sometimes stocks don’t move when I want them to. Sometimes a Black Swan event (hello pandemic) throws everything into a tailspin. If I don’t act quickly, my once promising trade can result in a loss if I’m not careful.
It’s okay to take a break from trading
Some losses can lead to a dip in trade. I’ve been there many, many times. In this case, it’s okay to take a break from trading. Step back a few days and watch. You can learn just as much from watching the action with little or no risk on the line as you can actively trade.
Income trading options are not the easiest way to build wealth. It takes hard work, discipline, and extraordinary preparation to survive. Profits can be swept away from you in a split second if you’re not careful. Taking a break will allow you to get back to action mentally, emotionally, and financially in a much better place.