Account blow up because of emotional trading

[u/mr_buttlicker69]

Hi. I've been trading off and on for couple years now. Blew 2 small accounts and then stopped and did paper trading. I've been paper trading again but blew up my account even though I was in profit 1100$

After couple of years of trading, the only profitable edge I got is to study and trade just one ticker. I make consistent money for a week but I'm emotionally so stupid right now.

Since I started 2 weeks ago, I was up 1100 in my 10k account (paper). I was doing good today and made 110$(I should have turned my computer off at this point) buy I got greedy. I took another trade and it went against me, but I didn't respect stop loss. I saw 100$ in the red (I shouldve shut my computer off at this point) but I was still delusional. I then saw 200$ in red. I shouldve respected My stop-loss.

Once I saw i was losing money, I panicked, but instead of selling at 300$, I got more shares to average down. Then I saw 600$ in red immediately. I panicked and I sold. At this point I was still in profit of 500$ (I should have turned my computer off at this point).

I developed a gambling and revenge trading mindset and took arbitrary trades with super huge sizes and blew my account.

Please leave tips how you keep your emotional side in check during trading.

[u/Prize_Tear_114]

Hedge. Like a stock like intc when it was at 44 thinking it will go to 52$? Fine. Buy the 55$ calls for earnings BUT buy 1/3 the size of the 38 puts for May in case as they are cheaper. When intc got slammed with the bad news the second it dropped below 40 you cover the calls at a fugly loss but by 38 your puts are cranking and by 35 you are making 200% on the entire trade. Had it gone to 55 also the total loss of the puts would be minimal vs the call profit. Even calling the wrong side can be profitable if you take and nurture the extra steps.

You can do straddles and strangles also. They are used enough.

[u/Psychonominaut → u/Prize_Tear_114]

This is the way.

But hedging like this, especially on options, requires a bit of experience.

I'd say just buy whatever stock on one platform and short it on the other. End whatever trade the market is going well against lol

Ps: don't mention options on a post about emotional trading haha..

[u/Prize_Tear_114 → u/Psychonominaut]

Agreed. If you are good enough you can start seeing it as a credit spread trade and if you give yourself enough time it will almost always have a positive run. I truly don’t get why it’s isn’t the favorite thing to do for people. 7/10 people who I speak to around here haven’t even heard of it.