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“I have a pretty good method using technical analysis. I tend to trust it too much…”

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I have a pretty good method (using technical analysis). I tend to trust it too much. I sell naked puts and when one re-educates me, I keep rolling it out until it recovers. My problem is taking too large of a position. CAT, for example, took several months to get profitable. ROKU is presently giving me a problem. SI is working well. No losers yet. Deep out of the Money, short term, high IV. A recent problem seems to be early exercise.

Michael J.

I don’t see a consistent strategy in your description. You need:

• Exact rules for selecting your tracking portfolio.
• Exact rules for entering your trades at the right time.
• Exact rules for exiting your trades with a loss.
• Exact rules for exiting your trades with a profit.
• Exact rules for how much money to bet on each trade.


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