In spite of the marketing schemes and tactics that you may have seen on tv or online, when it comes to trading, every day is not going to be massive. The main concept to grasp is that small wins DO truly add up. You can simply piece together a few trades in order to achieve a nice trading day overall.
If you look at the image below, you will see that my biggest winning trade today was on AAPL 162.50 Puts for $112. I was up over $180 on the position but my final target exit price was not hit. The price began to go against me a bit so I sold for a $112 gain. The key is to capture a piece of the pie or in other words capture a portion of the stocks price action.
If you’re ever tempted to be ungrateful for small wins here’s a little tool that I tend to use.
For instance, if you have a “9-5” job or previously had a “9-5” job like myself here’s an example:
Let’s say you make $20 per hour. You work 8 hours per day for a total of $160. You have given up 8 hours of your time to bring home $160. However, as you’ve seen demonstrated in some of my live trading videos, it’s possible to make $100-$200 in a few short minutes. If you view one of my previous blog posts called “How to profit as the stock price goes down” you will see that I made $444 in just 7 minutes. So which scenario is more exciting to you…making a couple hundred dollars in a few minutes or even an hour or making a couple hundred dollars after 8+ hours of work?
Trading can give you the opportunity to supplement or completely replace your income. It’s always good to have more than one stream of income just in case one stream slows down or completely dries up. You just have to keep things in perspective even when your wins are small.
So, the next time you are tempted to be ungrateful or become greedy in a trade remember that trading is a marathon, not a sprint. Allow your small wins to add up and work for you. You don’t need massive wins every day in order to be a successful stock trader.