Let me set the scene.
I was sitting at my desk, sipping reheated coffee, watching the P/L meter on my Robinhood screen nose-dive faster than my dignity.
What started as a confident, “This is the one,” turned into an $870 loss in a matter of hours.
No stop-loss.
No edge.
Just ego, vibes, and Twitter hype.
This is the exact moment I realized something:
“You either build a system, or your emotions become the system.”
😤 How It Happened (And Why It Was So Avoidable)
The ticker? $AMD
The setup? Momentum play on earnings hype.
The trade? Bought 3 near-weekly $130 calls, $290 total per contract.
Here’s what I told myself:
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“This thing’s gonna explode.”
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“Volume is crazy.”
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“Everyone’s talking about it.”
Here’s what I didn’t do:
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Check IV crush risk
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Analyze support/resistance zones
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Evaluate my exit plan
Instead, I watched the stock pop at open… then tank.
Implied volatility dropped like a brick.
The option price decayed to dust.
I held. And held.
Then rage-sold at -87%.
🧠 The Emotional Hangover Was Worse Than the Loss
Losing $870 hurts.
But what really crushed me was the shame.
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I knew better.
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I’d read the books.
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I watched the YouTube tutorials.
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I even had TradingView open.
And yet—I ignored it all.
Because I wanted the dopamine hit of being “right.”
That day, I swore I wouldn’t just move on…
I’d build something that would make reckless trades impossible.
✅ The Checklist That Saved My Future Trades (And My Sanity)
This is the 10-step pre-trade checklist I built after that meltdown.
I don’t click “Buy” until every single one is answered.
Feel free to copy it, print it, tattoo it on your mousepad.
1. What’s My Edge—And Is It Real?
Am I basing this trade on a repeatable pattern or pure FOMO?
🚫 “Everyone’s buying it” is not an edge.
✅ “Price just broke 50-day MA with volume confirmation” is.
2. What’s the Risk/Reward Ratio?
Can I clearly define my potential reward and my max loss?
If you can’t answer that in 10 seconds, you’re not ready.
3. What’s My Exit Plan (Win or Lose)?
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Profit target?
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Stop-loss level?
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Trailing plan?
No plan = future regret.
4. What’s the Timeframe? Am I Matching It with the Right Option?
Buying weeklies for a 3-week thesis? That’s a mismatch.
5. Is IV High or Low? What Happens Post-Earnings?
IV crush has killed more trades than bad fundamentals ever will.
Check the IV rank before you buy.
6. What’s the Market Mood Today?
Even the best setup can fail in a risk-off day.
Spy red + VIX up = proceed with caution.
7. What % of My Portfolio Am I Risking?
If it’s more than 2-5% of your account, slow down.
Your future self will thank you.
8. Did I Sleep on This Idea, or Is It a Heat-of-the-Moment Play?
Good trades still look good tomorrow.
Great trades feel boring.
Bad trades feel urgent.
9. Would I Still Make This Trade if I Couldn’t Tweet About It?
If the answer is no, it’s an ego play.
Not a strategy.
10. Am I Emotionally Neutral Right Now?
Feeling:
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Bored?
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Revengeful?
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Overconfident?
Close the app. You’re gambling, not trading.
💬 The First Time I Used This Checklist…
…I didn’t trade at all.
That alone saved me $300 in “just one more scalp” stupidity.
Over time, the checklist became my brain’s buffer.
It slowed me down.
Made me think.
It helped me:
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Trade less, but better
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Sleep better
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Actually grow my account without “revenge plays”
🧠 What I Hope You Take Away From This
You’re not dumb for losing money.
You’re human.
But you do have a choice:
Keep winging it and praying…
…or slow down, systemize, and trade with intention.
Your future $870 mistake can be your last one—if you build a wall of process between you and your emotions.
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