Weekly Summary: another great week (for my accounts)

Well, the Wall Street was a bloodbath this week but my trades were all successful (except one, FFIV whose position I closed before the closing today with a very trivial loss).   I practically doubled one of my trading accounts with mostly option spreads in 2 months.  If there is any trick to my success, I’d say this to you: respect the technical analysis (TA).  When I place trades with option spreads, I pay a lot of attention to the chart patterns.  I place my trades below support lines.  Stock prices usually fluctuate back and forth with a channel (as represented by TA).  If you know TA, you’ll know where to place your trades.  Another tip is to stick to your war plan and do not change your plan easily.  Before you place your trade, anticipate what to do if things don’t go the way you want.  In stock market, you are playing with statistics.  Just like in our life, we deal with probability all the time.  You may say playing with stock market is a gamble.  Well, I am sorry to disappoint you, but you are gambling everyday in your life.  When you sit behind that wheel and drive your car onto the street, you are gambling.  You are betting that the weather is good, I am not drunk, therefore the probability of me hitting something or someone or someone else hitting me is low.  So you drove out of your garage.  When you are on that road, are you sure 100% you won’t have an accident?  Even staying in your home, sweet home, are you sure you are 100% safe?  Who says there won’t be an airplane hitting you from the sky?  Who says there won’t be an earthquake hitting your home?  But why do you still stay in the sweet home?  Because, subconsciously, you know the probability of the above to happen is very small.  So you see, you are playing the probability game.  The same is true to Wall Street.  If you respect statistics (or probability), you’ll have an upper hand.  The difference between gamble and investment, in my humble opinion, is weather you use your brain or not.  Gamble, in my view, is betting purely on luck or chance.  Whereas investment is a calculated risk taking.  Life is full of risks.  Anyone who disagrees, give me your mobile and I’d like to see if your brain is full of water.