Breaking Your Own Rules
Ah, yes. Rule No. 8 gets me again, this time for a major chop with GOOG. One day soon, I’m gonna remember this rule when I’m entering trades, not just when the trade’s over and I’m either drinking a toast to dollars lost or lovingly spooning with my trade confirmations. Nah, I don’t really do that, but there was this one trade last summer, on Google no less…
I’m not in such a sour mood. I can set position sizes hanging upside down with one hand tied behind my back, and the temptation to overcommit never bothers me anymore. My stop on GOOG was really wide (about 10 bucks), and my PS was correspondingly small. So, I’ll take a whack on this trade, but even though it’s more than I anticipated, it’s not crippling.
I shudder to think back to the days when a decision that the way to be pointed in Google was “down” would have seen me using half of my entire account’s equity to buy at-the-money puts, in which case right about now I would be in the bathroom Calling Ralph on the Big White Phone.
So, if this is the spanking that reminds me to think of that rule in the future, well, it’ll be worth it.