Lessons Learned#
A running collection of key insights from trading experience.
Review this page weekly. These are expensive lessons - don’t repeat them.
Risk Management#
Never Average Down on 0DTE#
Date Learned: – Cost: –
When a 0DTE position moves against you, the theta decay accelerates the loss. Adding to the position doubles your exposure to a losing trade. Accept the loss and move on.
Position Size Before Conviction#
Date Learned: – Cost: –
It doesn’t matter how confident you feel. Follow the position sizing rules every time. The one time you size up is often the one time you’re wrong.
Execution#
Wait for Confirmation#
Date Learned: – Cost: –
The first touch of support/resistance is rarely the best entry. Wait for a reaction, a test, and confirmation before entering. Missing the first few points is worth the improved probability.
Don’t Trade the First 15 Minutes#
Date Learned: – Cost: –
Market open is chaotic. Spreads are wide, moves are exaggerated, and fakeouts are common. Let the market settle before taking positions.
Psychology#
Revenge Trading Destroys Accounts#
Date Learned: – Cost: –
After a loss, the urge to “make it back” leads to oversizing and poor setups. Walk away after two consecutive losses. The market will be there tomorrow.
FOMO is Not a Strategy#
Date Learned: – Cost: –
Chasing moves that have already happened leads to buying tops and selling bottoms. If you missed it, you missed it. Wait for the next setup.
Market Understanding#
VIX Spikes Are Opportunities#
Date Learned: – Cost: (This one made money)
When VIX spikes, option premiums expand. This is the time to sell premium, not buy it. Credit spreads become more profitable during fear.
Respect the Trend#
Date Learned: – Cost: –
Counter-trend trades require more precision and have lower win rates. Trading with the trend is easier and more forgiving. Save counter-trend plays for clear reversals only.
Add New Lessons Below#
Document each lesson with:
- Title - Brief description
- Date Learned - When you learned it
- Cost - What it cost you (financially or emotionally)
- Details - Full explanation and how to avoid repeating