Hey Guys,
The market ended up with a down day yesterday, but it's rebounding a bit this morning.
I had a bunch of option trades reach their time limits yesterday and get closed. I got thumped on a couple of those trades, namely the options for PNC and Wells Fargo.
Taking losses on trades can be challenging. Even if you're trading with a true edge, having losing trades can bring up emotions like fear or anger. And there is very real risk involved since no one can predict the future with certainty. It's what makes trading so hard.
If I get an emotional charge out of a loss, I like to zoom out my focus and look at the big picture. And the big picture with this trading strategy is that it has a deep, decades-long history of success according to my research. That's why I stick to the plan through thick and thin. I can't get the long term potential reward if I can't live through the losing trades along the way, so I accept the risk and stay in lock step with the back-tested approach.
My stocks account is full and has no available buying power, so I didn't take on any new trades today. I took on a new trade today in my options account for XLP. I also picked up a couple of option positions yesterday midday (PTON and WDC).
If you have any questions or feedback, I'd love to hear from you.