Van Tharp makes the most profound statement about trading" We trade our BELIEFS about the market".
That is a great comfort when we are wrong,as I am currently.
I may have a modest loss,but I believed the market was ripe for a correction-it now has to fall 2% further to make me a happier bunny.
It's not easy for options traders to make money in a low volatility environment, from my experience it's cheap to trade, but you need to be directional-ie to have a ball park figure for the market. I will look to take something out of the call side and morph my long put spread so I can take in some premium safely.
As for beliefs about the economy- you don't have to travel far to see that things are really not good-but the economy is not the stock market.
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