Northeast Nebraska and Candelaria Philippines | I'm going to have some available funds ($10,000 to $50,000) to invest in the coming months. Planning on funding my equity indexed universal life policy to the max, and then will have some other money to invest.
In the past, I was an active spec trader. In 2004 (when I was 27) I put 10,000 in an account and sold bean puts, and then doubled up, and doubled up again, and again. I grew that 10k into 130,000 at the peak within a few months. Then as it crashed, I ended up owing my broker another 30k. Ooops....
Since that time, my finances haven't gone so well, so I've stayed out of the market except occasionally putting on 1 or 2 positions.
I'm 37 and single have no kids, and have a pretty high risk tolerance. I also don't have much of a net worth, this income I have to invest is new income from a new venture that is working out for me.
I like selling options. I stay informed on ag market fundamentals. Years ago, I had a broker, but now use Ameritrade and trade the positions myself.
My question is this. How do you trade as an investor instead of a gambler? How do you control your emotions on your trades, and how do you learn when to get out of a trade that is going against you?
I have some ideas on this, but want to see what others have to say.
An example of a trade I'm wanting to make is this. I don't know what direction this market is going to go, but if it would decline to a value that I would consider under valued I'd like to sell dec 15 corn puts.
Edited by kggonzo 8/30/2014 13:31
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cbot gambling vs investing
