Why a 95% Win Ratio is a Nice Way to Live

We had a little turbulence in the stock market the past few days.

It really wasn’t a huge deal. But if you follow the options trading groups, you would think we just had another 1987 crash. The same people who had been bragging that they were making big money a week ago were now lamenting that it was “all gone.”Capture

That’s just not a way I want to live.

My account finished slightly ahead on Friday, even though I sell naked strangles. It was nice not to be part of the panic.

Granted, I did have to adjust one position (/ZN) and a few others were shaken a little. Yet, none of the positions became worrisome.

So, even though my plan isn’t always the most exciting (and requires patience), I have no doubt it is the way I like to trade. It is empowering to simply trust the mechanics and focus on making your process for executing those mechanics more efficient—rather than fighting for your life whenever the wind blows. And if my plan continues to deliver an average of 24% profit on a portfolio per year, I have no complaints!

Here are some ways to spend time making your process better:

  • Work on a Google Sheet (or other technology) that analyzes your past trades and shows you what works best. Remember, while studies and backtests are nice, they don’t take into account all of your nuances, adjustment techniques, and personal temperament. Your own personal trading history is a valuable asset!
  • Research new information that ties closely to your existing trading plan. If you have a process that is working for you, it is good to continue making tweaks that improve your trading. Be careful not to overturn the whole apple cart if you have a good thing going.  We’re talking about tinkering and gradually improving here.
  • Have discussions with other like minded traders. This is another way to learn more and it’s fun to know your not alone in this endeavor.  Again, just be careful not to fall into someone else’s hype and subvert your own successful trading method.

 

Happy trading!

 

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3 comments on “Why a 95% Win Ratio is a Nice Way to Live

  1. Would you please give your email to send direct message?

    Like

  2. Appreciate all your information, J. Very helpful and transparent.

    Like

  3. Raymond Stein

    Always appreciate your information and attitude, J.

    Very helpful and transparent.

    Like

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