September 25 brought me a decent return in my trading despite it being a seasonally underperforming month. The returns from stock trading were almost similar to those from options trading, clocking more than USD 900.
I realised that in good months, options trading tends to outperform stock trading, probably due to the power of leverage, as every contract is made up of 100 shares. The power of CALL options can yield unlimited returns if a trader manages to catch an upward trend at the right time.
Profts from Stock Trading (USD919.50)
The below table shows the stocks that I have sold in month of September, the buy and sell prices and the number of shares sold.
Profts from Options Trading (USD934)
For September, most of my profits come from the buying (and later selling) CALL options, which is a powerful strategy for stocks that rise quickly in share price. Time is often the enemy and when the particular stock stays stagnant for a period, the premium drops quickly, resulting in losses for the options trader.
I also had a SELL CALL contract on Serve Robotics which I closed early at a small loss.
On hindsight, this trade would have tuned profitable if I had held on this position longer. However, that is the type of decision we have to make in trading, as it may also go against us if we decided to hold on. So, it is important to trust your judgement at that point in time, because it was the best decsion that you could ever make.
Concluding Thoughts
I am quite happy with the returns from trading in September. The capital in my trading portfolio has grown by more than 25% since I have restarted in April 25, and I have not added any capital to the initial invested capital. I hope to reach 100% and continue to grow my trading portfolio in the months ahead.
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*** FINANCE BOOKS ***
If you are new to investing, options trading or personal finance and would like to get yourself educated about the fundamentals, you may want to consider these very popular and highly recommended books: One Up On Wall Street, The Psychology of Money, Rich Dad Poor Dad,
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