26 Celebrating Failure
Celebrating Failure I have failed severely three times this semester while doing options trading. In an extremely simple sense, options trading is a trader betting a security will either go up or down in a specific period of time. The reason I failed was because I kept using the same strategy and it clearly didn’t work. I did what is called buying on the dip. Basically when a stock falls a significant amount, you buy it at the bottom hoping it will rally back. I tried to do technical analysis to see the support and resistance lines and plan my entrance and exit strategy. After losing big on GoPro, Qualcomm and Snapchat, I decided enough is enough! Undoubtedly my strategy is not effective and unless something changes my account balance will get lower and lower. Learning from my mistakes I have updated my strategy and merged value investing with technical analysis. This means I initially only look at the fundamentals of the company, i.e.: the company’s balance shee...