A month ago, I picked up options trading. As mentioned earlier, it went well, much better than expected, to the point where I almost made 500% on my account. But WAIT! Before you click off this post thinking it's the same old wall street bets story, trust me, it's not.
I started off reading the news, watching streams and digesting articles on the market, focusing on what I knew best, tech companies. I started trading small lots, one at a time and making 100-200% returns on each of trade, with a win rate of about 80%.
This went on for a week or so, where I used the same strategy, being patient and biding my time.
Eventually, I started getting complacent, and hence a little greedy. I was ramping up my trades, buying more lots than my account could handle and taking trades I really should not have. This led to me losing 10%, then 20%, then 50%.
At the end of it, my account was right back to where it started. Just about 20% of what it was a week ago. The funniest thing was, I made much more money when I wasn't exactly chasing it. I made more money when I was patient, when I was conservative, and when I was humble.
It's a tough lesson, but an essential one. There's nothing I can do now but rethink and repent.
