Day 12 of Trading the $500 to $10,000 Challenge.
Today, I want to talk about my defeat.
I started the day with 5 minutes of scanning for patterns to play. I found the perfect setup for United Airlines today, and I knew they were going to hit $27 in my head. The stock price was trading at $26.58 on the opening bell. (You can replay day 12 from the Live Stream)
I went ahead and purchased three $27 calls with the expiration date of 5/1/20 for $102 each. I spent $306 for this position. My plan was to make a day trade, and all of my day trades always shoot for 50% winners and above.
The stock chart followed my 5 elements and I knew that this one was going to be a winner.
While entering the trade, I saw that there were a couple of people shorting the stock in the morning, and I somehow doubted myself and I tricked myself into getting scared that I was wrong.
My $306 position became $280, then it became $260, then it became $180, and I let fear grow in my mind, even when I knew the direction, the trend, and the momentum of the stock.
I ended up stopping out of the trade at a $100 loss.
A long story short, at about 1:30 PM CST, UAL stock hit $28.24 and stayed at that price point for a good 20 minutes.
I realized, had I believed in myself, I would have turned that $306 into $538. But instead, I ended up walking away with $206. (We will learn from this mistake and grow from it together)
The moral of the story is to always have confidence in yourself.
If you ever get a chance to talk to a multimillionaire, many of them express great confidence in themselves.
Confidence is simply the expression of competence.
If you are competent and sure of your skills, you know exactly what you are doing, you take risks without hesitation, you make decisions without hesitation, and you will always end up having the best results.
Let me dumb this down for you guys.
Say, there is this really pretty, super attractive girl – right?
If you were a confident person, you would go up to her, talk to her, and get her phone number.
On the other hand, if you were a person who was lacking confidence, when you go up to the girl and ask her for her phone number, you may shake a little bit, you may stutter, and you may act and sound a little creepy.
Think of this from the girl’s perspective.
The girl would most likely not want to give the creepy guy her phone number.
The girl is going to give her phone number to the confident guy.
I want all of you to become more confident in yourself and become more competent in your skill set. It doesn’t matter what you are doing, you need to trust and believe in yourself.
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Disclaimer:
I want to point out, I am not a registered investment adviser or broker/dealer. I am a highly profitable options trader who has been successful time after time, and I have changed the lives of many people through the art of trading on the stock market.
– Ken