Trading based on narratives, thoughts?


So I am 30 years old, and my options trading performance has been poor up until this point. I realized that I was gambling instead of just trading. After losing quite a bit of money, I took a break from trading and reflected on my past trades.

I am starting to understand when to trade vs when to not. I have studied what ratecut means, economic data, narratives etc. For example, beginning of this year we expected 5 rate cuts and the market was going to ATHs. So this was the time to get calls. Now we will be lucky to get 2 rate cuts because inflation data is hot. I didnt realize this stuff at the start of the year so i didnt really play with size or I really didnt know what I was doing. Now that the economic data is hot, we probably chop until fed Pivot.

Same with Covid, when feds cut rate, I was still shorting the market despite the feds injection trillions of dollars into the economy. Was obvious looking back.

I want to hear about what yall learned over the years. After a brief hiatus from trading, Im excited to get back in. But will probably sit on my hands until we get a new narrative.


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