Curious how a trader achieved 20% total account growth in just 7 weeks? It's not just about making smart trades - it's also about having the right trading psychology. In this blog post, we explore the mindset shifts and strategies that contributed to this impressive win. From controlling emotions to managing risk, we delve into the psychological principles behind successful trading. Join us to learn how to cultivate the right mindset for trading success, and gain insights that could help you grow your own trading account.
About the Trade:
It was an advanced option spread for ticker symbol BOH having very little to do with price movement. This strategy involved not moving too much and just waiting.
Time In the Trade:
March 10th until May 2nd and rolled it once.
How Often Did I Check This Trade?
I only checked on it 3-4 times during the time in the trade.
1st Check- Ok great, it’s going to work.
2nd Check- Meh, hope it stays doing nothing. What am I thinking? I know it’s not going to move much–good for me!
3rd Check- I certainly do not have to worry about this trade.
4th Check-Something is happening! Better get out fast! — Closed for a win of 20% account growth.
What Was I Doing While In The Trade?
I was very busy devoting hundreds of hours to coming up with different ways to teach several students who had missed a class and now had to take an end-of-year exam. I devoted almost all of my time on this, even skipping some lunches and sleeping. #Another reason to quit teaching
Closing The Trade:
I was ecstatic! I yelled out a “Whoo Hoo,” and clapped! My children around me asked, “Mommy what happened?”. I told them I just had a win. (I took a pic right after closing the trade and collecting profits.)
A little more background: My hometown had just been hit with 85mph winds throughout the city and surrounding towns bringing down power lines, roofs, fences –you name it! I had only recovered power at my home only to lose it again. I had no electric power at home. I took a little break to work at my local library to work on my trading and blog. Hard work and dedication really does pay off.
Thoughts After Closing The Trade
I was of course grateful and made me even more confident about trading. Confidence is a must-have when taking these trades. I thought of what other people might do if they were to have an opportunity to learn that their accounts would grow by 20%. My first thought was of greed, adding more money to the initial trade. I recognize this emotion: Greed.
Greed in trading can get you killed in the stock market. In the psychology of trading, there are many emotions that people come across while trading. You must absolutely stay away from Greed as you can risk losing your entire account.
After a few hours passed by I was back to my original stealthy, unmoved nature. I became more critical of the trade. My thoughts were “Whatever”, this is only the beginning and you’ve got a long way to go. Take this as just another regular day. There are ups and there are downs–so what?
What I Learned From This Trade
Slow and steady wins the race. It made me realize I need to be more aware of the emotions that come up in trading and definitely need a checklist on the psychology of trading. I was very responsible for the trade I only risked 3% of my entire account to grow 20%. I am happy that I am capable of risk management.