Hey Guys,
This morning has been hectic. I made a lot of trades, and most of them have taken a lot of heat. A lot of consumer cyclical and technology stocks have plummeted this morning and that's where I have a lot of exposure at this point.
Here are some examples: LULU yesterday was doing pretty well and today it's close to its stoploss. I have options positions in XLNX and DHI that are both down. My options positions in MRVL and KLAC both started up and as of today are down noticeably.
And you know what? I'm ok with it. It's not particularly fun, but I still accept it. The reason is because this is nothing new. This looks just like many other chapters that came out of the back test. There are plenty of periods where there were losses or where heat was taken. There is no way to reap the potential rewards of this trading approach without traversing situations like the one we're experiencing today, and that's really what's so challenging about the whole thing. We know back tests show that historically this trading approach may have generated solid returns over time, but it doesn't mean it's easy to live through!
But I'll tell you this: if these positions bounce back, I have a lot of exposure to ride that wave back up...
Here's a roster of the positions I picked up today (between both accounts): For stocks, CBRE and TRU. For options, LEN, NXPI, KKR and DHI. I also picked up an MES futures position when the market opened. It's the only one of my MES trades that sometimes triggers in the morning, and it's the one that goes long during "options week" each month if volatility is relatively low.
I closed out PEAK this morning for a loss because it hit its time limit.
If you have any questions or feedback, I'd love to hear from you.