Please Don't FOMO
Damn it. I was this close to having a really great day.
I woke up at 6 am, sat for my meditation (I use The Way with Henry Shukman – can't recommend it enough), grabbed some coffee, and settled in to trade the market open. With all the volatility, it's usually a fun time, and today the market was actually moving in my favor.
Lately, I've been obsessed with cracking the code to options trading. After some early wins with call options (it's a bull market right now, so no, I'm not pretending to be a genius), I decided it was time to start making some real money with 0DTE calls.
For the uninitiated, 0DTE means "Zero Days Till Expiration." The short expiration window makes Theta a real bitch. You can win–or lose– a ton of money in the blink of an eye. If it sounds like gambling, that's because it is.
This morning I was targeting SPDR S&P500 ETF (SPY). I recently joined a Discord group called Options Kings– a community of degens like myself who put their blind faith into a Bot that signals whether to buy calls or puts in real-time. Apparently, the Bot was programmed by Options King himself, leveraging his years of experience in the market.
The rules are simple: buy the option that Bot calls out in the morning, set your Take Profit at 100%, and go take a nap. Sounds easy enough!
Well, apparently I don't know how to follow the rules.
In fact, I haven't won a trade since joining the group – but that is 100% my fault. I am still learning to trust the Bot and not panic-sell ("paperhand," as the kids say). It's tough when you're dealing with high premiums and a small account like mine.
This morning I was trying to get in here.
I had my call option picked out but missed the entry. I set my limit price for the premium way too low, so my order never filled. And what happened? The market soared.
Okay, no big deal. Missed one trade. Happens.
But the Bot kept on signaling calls, and everyone in the discord was raking in insane profits.
I had FOMO.
So what did I do? I bet against the Bot.
I bought a Put on SPY, thinking I'd timed the top and caught the start of a correction. Annnnnnd I lost. Again.
Note to self: Revenge trading is not my style.
So what's the lesson here?
RULES. WE MUST HAVE RULES.
Self-defined trading rules are the only way to even come close to beating the market long-term. I really need to set some for myself...
For now, trusting the Options Kings Bot is a rule. Is it a good rule? Hard to say. There are people in the discord making serious money by sticking to it religiously– maybe it's time I join them. Live and die by the Bot.
One thing I do know? Trusting my gut is definitely not a rule worth following.
Ah well, live to trade another day.
(Quick disclaimer: I do have some rules. This is a small account, funded during the pandemic. I haven’t added to it, and I’m fully comfortable losing this money while I teach myself the ropes of the market.)