I should have paid attention to that little Wall Street slogan and quit trading in the month of May~ and today, June 1st, has only underlined that. Oy, what a mess~
Looks like I might lose ALL those wonderful gains I've made from Jan through April. (and so has the rest of the Market.)
However. No losses are without gains, and I'm learning, learning, learning. All those "boring" things they tell you about managing risk and doing the math
became very, very, very important in the month of May.
There are certain rules in OptionsAnimal's education. One very important one is doing the math beforehand, and KNOWING YOUR PRIMARY AND SECONDARY EXITS before you pull the trigger. I got very clear this past month that I have a strong "belief system" that my trade is always going to work out...according to my primary exit. A win.
Poor deluded woman. Not always the case, and I got caught with no secondary exit in place on three different bull put spreads where the market took the rug out from under me. I did NOT consider secondary exits. I SHOULD HAVE had enough cash to get assigned, buy the stock and put on a collar trade. Of course, I did NOT have that kind of cash, so instead I will be close to my maximum loss on all three trades. An expensive lesson.
However, I am learning more and more and more about trade adjustments ( Collaring the trade above is only one adjustment of many). I may go broke before I learn it all,
but damn~! It never gets boring.