I got called out in my last thread for giving a bullshit answer to a vague question.
Therefore, let’s paint a picture.
Let’s assume you are “Mikey” in the clip I’m about to show you. You recently funded your Zecco account with three stacks of high society. In order to run at the high rollers table, you laid down a bet that accounted for a pretty big percentage of your account. As a result of your bet, you draw low cards, but still a promising hand.
After some thought, Mikey doubles down.
Maybe partially due to peer pressure, but makes the call to blow his wad on one hand. As the result of that bet, he is then forced to work his way back with much smaller bet size over the next several hours at the lower stakes table filled with IBC readers that will not be attending our upcoming Investor Conference.
In this instance, my “bullshit” reply is valid. I have no idea what you’ve wagered here, son. I have 4% in this trade, which is my biggest option position. Being that I am already oversized, I cannot double down here.
If this is not a big position, buy more. But there’s no reason to go significantly broke here knowing that its a call option, and it can lose all its value.
OA
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no matter what, there is one person and that person only can click the mouse! cheers.
Nice to see my comments featured on OA Blog :-)! I did end up doubling down. Holding now 4% worth FSLR Oct $80s
Smarter thing, in hindsight, would have been to start smaller and be ready to double down.
Yeah, that would have definitely been smarter. Will keep it in mind for the next ones.
Was your 4% position built over time?
One fill.
Can you tell your entry price
“work his way back with much smaller bet size over the next several hours at the lower stakes table filled with IBC readers that will not be attending our upcoming Investor Conference.”
Been at many a these kinds of tables in my day. And I will say The Flamingo brings the cheap whiskey fast and the table massages are a real treat for $10.
I played the Cache Creek since I turned 18. No shame.
Love it. In college I read a quote somewhere from Bruce Willis. It said “No matter how much fame I attain, or how much money I have in my bank accounts, I’d better be able to throw on a T-shirt and workboots and get my own damn groceries.” Something to be said for that.
That person should do himself or herself a favor and read Raul’s blog post from Friday. http://ibankcoin.com/raul3/2014/09/19/risk-on-the-forefront/ Where is the ownership and responsibility? How can you take a trade without a planned exit? Make your trade, set a couple alerts (target, stop loss levels) or make a conditional options order as a stop. It’s not that hard. That person deserves to lose money.
thanks for the shout out Operator. I will add that no one deserves to lose money, nor make money. We need to work the probabilities and take everything in stride, fully accepting that we can be wrong on an idea. The method of risking an entire option premium works well because it fixates your risk just like a bet at a casino table. Other instruments do not afford one such luxury.
in soviet russia, 11 double downs on YOU!
Take a breath, Jeff. The boy sounds like someone who hasn’t blown out his account … yet. If he doesn’t listen to you about position sizing, that error on his part will be … ahem … self-correcting.
I’m good. I thought this scene would be a good correlation to this exact same dilemma.
I’m glad. And yes, a good correlation, for sure. I’ve blown out a couple of accounts over the years … taught me a lot about trading discipline and position sizing.
i don’t care how big or small my bank roll is….if i’m holding 11 and the dealer is showing 6 or less I’m doubling down.
+1
But if you are already 50% of net worth you screwed up to begin with and didn’t think ahead.
jezz this KORS has been the worst trade ever. Hate playing bounce plays. OA- you still holding this dead cat?
When this trade is profitable, you lose your chat privileges…deal?
no thats a bad deal. My bad, if you took it the wrong way. I got no time to battle someone who is more experienced than me. #respect
I was kidding too.
I appreciate your sense of humor mixed in with the good advise. People with sensitive feelers may not always like being answered that way.
Answered with a video?
Video was perfect
Last week you said $RUT 1160 was “line in the sand.” Do you still feel that way?
Sometimes sand gets swept away with the win, or the line gets washed over by the rising tide, but then you notice another line in the sand a few yards away. And this other line in the sand, maybe it’s a bigger, thicker, longer (no homo) line in the sand that if breached would mean your home washes away to sea. Hope you have flood insurance.
wind*
Is it a good sign that $SFUn has turned around and went green here?
You know what you are Jeff? You’re like a big bear with claws and with fangs!
No he’s not, ictmoneyman. He’s really a sweet guy … reminds me of the guy who taught me the basics of options trading (an ex-GS trader – and also a really sweet guy)
OA- you must be getting a lot of heat today? What do you do to maintain ur calmness. I definitely need that as a trader/people manager at work.
OA, I don’t know how you do it, managing your own emotions on days like today is hard enough, let alone the crowds.
Tough to do.
Trent: You know what you are? You’re like a big bear with claws and with fangs…
Sue: …big fucking teeth, man.
Trent: Yeah… big fuckin’ teeth on ya’. And she’s just like this little bunny, who’s just kinda cowering in the corner.
Sue: Shivering.
Trent: Yeah, man just kinda… you know, you got these claws and you’re staring at these claws and your thinking to yourself, and with these claws you’re thinking, “How am I supposed to kill this bunny, how am I supposed to kill this bunny?”
Sue: And you’re poking at it, you’re poking at it…
Trent: Yeah, you’re not hurting it. You’re just kinda gently batting the bunny around, you know what I mean? And the bunny’s scared Mike, the bunny’s scared of you, shivering.
Sue: And you got these fucking claws and these fangs…
Trent: And you got these fucking claws and these fangs, man! And you’re looking at your claws and you’re looking at your fangs. And you’re thinking to yourself, you don’t know what to do, man. “I don’t know how to kill the bunny.” With *this* you don’t know how to kill the bunny, do you know what I mean?
Sue: You’re like a big bear, man.
HAHAHAHAHAHAAHA
Funny story, I walked into a casino with $500, ran it up to like $6K. Like an imbecil I bet like $3K on a single hand since the count was THAT good. I draw an 11 vs. a dealer 6. The count is like +18 or something ridiculous, with just about a deck left in the shoe, for a true count of +18. So my chances of drawing a 10 are really good. Of course I double down and have $6K out on the table. Dealer deals me a 9 for a total of 20. Dealer flips over his hole card, which is a 5. Dealer proceeds to draw a 10 for a 21. Gotta love casinos.
Oh and the little old lady next to me betting $25 a hand draws a blackjack for the massive $37.50 score.