Recently, things are just not going smoothly. I believe the first month was just sheer luck and now I am trying to figure out things. I was reading up more on options as I want to go deep into the subject.
There are a lot of techniques and skills which I am trying to learn. Option can be useful in mitigating risk and help to hedge against position, it can also help to maximise your gain if used correctly. Another thing I learn is not just simply go for premium and did not understand the volatility, the earnings reporting period and deterioration of the fundamental. It is apparent that I let greed get the better of me.
It is not too late but just the start. I saw a Facebook advertisement of my army friend. He has grown his portfolio from USD 5k to USD 120k over the last 7 years and has declare that he achieved financial freedom, quit his corporate life and become a full time options trainer. I respect him for two things, 1) he has the guts to call it a day and run his own business whereas I am still happy that someone is paying me at the end of every month 2) he is disciplined enough to pursue his dreams and keep moving forward. These two factors won my respect. I think I should my dreams sooner rather than later.
I agree that valuation is getting higher and not much (very few) undervalued stocks are available.
I just borrowed this book “The Tao of Charlie Munger” and I realised that many years ago, Charlie was fully invested when he experienced the crash whereas Warren had placed his money with the Treasuries. Charlie waited for a while for the stock prices to recover whereas Warren pumped in and bought all the underpriced companies. I think by end of this year, I need to complete my rebalancing of stocks. I have sold some of my SG and US counters. I am thinking of standing by a pot of $200k in cash or in bonds ETF.
Recently, the stock market took a plunge and it is painful for Options Fund. Initially, it was a loss at US$100, then the loss widens to US$600. It has been a long while since I cut loss as I seldom trade these few days.
I was too greedy and just focus on the premium without understanding the risk level involved.