A month has passed since we started the new year 2023!
At the point of writing, it is now 4 Feb 23 - so as usual, it is time to take stock of how much cash flow we have collected in Jan 23.
In the month of Jan'23, I collected a total of $788 (these are all closed trades, so its all realised profits here).
Here's a snapshot of the trades which were closed.
All of the above trades which were opened previously, and was closed in the month of December and I collected a total realised profit of $311. To put things into context, this was done using a $20,000 portfolio, which would translate to around a 1.56% return in a month.
The trades were a mix of vertical options, sell put and sell call options.
Reflection
It is always worth reflecting on the losses and reflect on how I can do better the next time. And I wanted to capture the lessons here so that all my readers could benefit as well.
On 9 Jan 23, I sold a vertical call option on DIS. This was in fact, the correct entry - I followed all the entry rules which I set out for myself.
What went wrong is that I didn't stick to the exit plan. I should have cut my losses the moment there was confirmation that the resistance has been broken on 12 Jan 23. This way, I could have avoided the huge loss and January would have been one of the most profitable month.
So why did I choose not exit on 12 Jan 23?
Well, I was stupidly using the "hope-and-pray" method that the stock will reverse. Yes I sometimes make stupid mistakes like this too - emotions get in the way.
Why did I choose to share this?
Well, I wanted to broadcast this mistake, so that others can learn and not be an idiot like me.
And also, I wanted to be held accountable for my mistake - so if the next time you see me making the same mistake, please make fun of me 🙁 so that I can learn not to make this mistake again.
Reflection is a progress of growth - hope that this article was useful to my readers 🙂
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