Hey Guys,
The market dropped a long way yesterday, but it's been holding its ground this morning. The S&P 500 is around 4140 right now, which is a far cry from where it was last week when it was above 4300.
I had a number of positions hit stoplosses in the last 24 hours, including one this morning that gapped down a bit below my stoploss price (VEEV). This is certainly not what we are hoping for when we taking on these trades.
But it comes with the territory. If you look back at history through the lens of back tests, it's clear that there are plenty of times when there are strings of losses like this. It would be nice to win all the time, but I've never see anyone who can do it. So that means we have to be able to persevere through the periods of losses.
It can be really hard to persevere when there is uncertainty. And any time you're making trades in the stock market, there is uncertainty involved. No one can tell for sure what is going to happen next.
That's why I like to use history to inform my trading decisions. I use that information to try to put the odds in my favor. But there is clearly still uncertainty about the outcome of any given trade, and that's what makes trading so tough. To my mind, living through the drawdowns in the face of uncertainty and risk might be the hardest aspect of being a profitable trader.
I loaded up on more positions today. In the main account I bought A and HD. In the extra options account I bought options for TWTR and CVS. In the low-priced account I bought shares of TWTR and MKC.
If you have any questions or feedback, I'd love to hear from you.