Hey Guys,
The market had a huge down day yesterday. The S&P 500 dropped 100 points in a single day. It's actually the largest single-day drop for the S&P 500 since August of 2022. That sure seemed to come out of nowhere.
It brought just about all my positions down with it, including the option trades I that reached their time limits yesterday (both LOW options and my RNG options closed for a loss).
But I loaded up on new positions that got triggered late yesterday and this morning, and the market is rebounding a bit to start the day. The S&P 500 is around 5,175 right now.
This morning, I bought shares of stock for DIS and IFF in the main account. And I bought options for PYPL and DIS in the options account.
I've gotten a number of emails asking what I do when there is a big down day for the market like that. My answer is always simple and will hopefully become predictable to all subscribers: I stick to the plan. My goal is to follow in lock step with the back-tested approach. So I keep taking the trades that set up. And for existing trades, I just follow the trading plan displayed on the site for each trade, abiding by the profit target, stop loss, and time limit. I don't let emotions take over my decision-making. I came up with these trading rules based on tons of research, and I therefore detach from any emotion and stick to the plan.
If you have any questions or feedback, I'd love to hear from you.