Hey Guys,
The market is down this morning. The S&P 500 is about 100 points down from where it started yesterday. It's like a back-and-forth seesaw right now.
A lot of this drop happened late in the trading day yesterday, which was unfortunate for me since I had a lot of options positions reaching their time limits at the end of the day. Although it's true that I could have been better off if I had closed those positions earlier in the day, there is no way for me to have known for sure which way the market would go at the start of the day. If I had cut the cord on the positions early I could have been cutting off profit if they had run the other way. So instead of trying to guess where the market was going to go, I stuck to my trading rules in order to stay in lock step with the back test. That's what I always do. That doesn't mean that's what you have to do by the way! You have total control over the trades you make and I'm behind you 100% however you decide to handle them.
My TSM stock position also hit its stoploss this morning. I went from hitting profit targets yesterday in the morning and being up across the board to taking losses more recently and being back in the trenches of the drawdown. It's a volatile period. I'm just going to stick to the back-tested plan and let it lead me through this.
I've got some stock and futures positions that will reach their time limits on Monday if they don't hit a profit target or stoploss first, so I'll use market sell orders on Monday morning to close those as needed.
There are no new trades today. The watch list is really thin right now.
If you have any questions or feedback, I'd love to hear from you.