Lesson learned on buying stock/options
- For the past three days, I have tried to buy SDRL options, however, when the stock price dips a bit, I tend to be too greedy to get in at the lowest of all low price and therefore set the limit price to be very low and miss three times in three days!!!! (with the miss, SDRL stock increased by 25% in three days and I missed them all). And once the stoke/options shoot up, I tend to buy in with high price. I need to change my strategy: do not too be too aggressive to buy in with the lowest price, instead, set a middle price to buy in.
- I did not check stock/options price in the opening – I need to get up early everyday, and read the Words first, then read Google Finance right afterward. I do not want to miss the dipping timing.
- SDRL Options has very large spread (sometime it is >100%), I have learned to patiently try different limit price for entry.
- When SP500 dropped to 2085 on Nov.04 – 2% drop, I should have bought some stocks in my 401k, HSA. Instead, I was too greedy to wait for more drop in the market. But eventually, the market came back 8% afterward. And I do not dare to get in again. I should always remember my investment criterion. Buy in batch, and buy in with 1% drop. Think about it this way, in the long run, I can make money; in the short run, I am not buy in a whole, and I am buying in batch, therefore, I still have chance to buy more if it dips in the future.
