Hey Guys,
The market had a volatile reaction to the Fed's interest rate announcement yesterday, and initially went up. But by the time we woke up this morning, it had dropped like a rock and set new lows for the year. We're down around the price level where we ended 2020.
And with that huge market drop, I hit more stoplosses. My positions on COP (both stock and options) hit their stoplosses, and so did my stock position on CAT. This week has been really rough.
Through different market cycles we feel different emotions, and sometimes the short term outlook can seem permanent. For example, we're in a drawdown right now, and it might to some seem like it would be impossible to ever get out of it or recover the lost money.
But it was just last year that we were in the reverse of this situation and saw multiple win streaks. I had one streak where I had a 33-3 win/loss record. It of course doesn't mean we aren't facing real risk by continuing to take trades. But sometimes we, as humans, have a tendency to see the short term situation and catastrophize by mentally associating permanence with it. Yet in reality, nothing is permanent. So I find it helpful to zoom out my perspective and remember that this is just one step of many in our journey through life.
My EA option position reached its time limit today, so I'll be manually closing that position shortly before the close today if it doesn't hit a profit target or stoploss before then.
If you have any questions or feedback, I'd love to hear from you.