I saw it come up on TF a few times today - So I thought I would jot down some thoughts.
Trader A and Trader B - both bought Stock AAAA today - options they took a contract that cost $120.00
Trader A is a diamond Hand Gambler - They decided early they gonna hold hold hold
Trader B is a conservative sort - the first chance for profit they are out.
Throughout the day trader A - felt justified and laughed at Trader B - They made 112% by holding! Amazing returns if trader B was just braver or had faith they could see the same returns. 254.40 to trade the next day!
Trader B - was worried they sold early - but they realized they sold AAAA at 30% giving them $156 with that they felt a little easier spending on a call for BBBB - for $150 they were able to sell that for 60% gain now with $246 they bought CCCC for $200 this one worked out well to and they netted 35% return. Now with $306 they decided to roll the dice on DDDD for $100 - it didn’t work out but do to a tight stop loss they got out at negative 5% - leaving them with a total of $301 or 201% return.
The morale of the story - don’t worry if you sold early - look at the day, the week, the month not one trade. Did you make the right choice that lead to more good choices? Unrealized profits are just that, learn from them don’t beat yourself up over them - Consider you’re real loses did you have a chance to get out?
*Numbers are all made up - Don’t YOLO.