Hey Guys,
The market came back down 30 points. The S&P 500 is around 4,270 right now. It's at the bottom end of a range that it's been forming this week. We'll see if the range holds up.
I picked up a bunch of new positions since I emailed yesterday. In the main account, I bought stock positions for CPRT and MU this morning as well as VRSK and TTWO yesterday midday. In the options account, I picked up options for DDOG and GOOGL this morning as well as TTWO yesterday.
A number of sectors came down really hard yesterday, such as tech, and that is what brought so many trading opportunities to us so quickly.
That also explains why our stock position on CRM took a hit. It was just two cents away from the profit target yesterday in the morning! But the big drop in the tech industry escorted it all the way back down below break even.
I can tell you from experience that it's going to happen again at some point, too. It doesn't matter where you set your profit target. There are going to be times when a trade gets so close to a profit and then backs down and never comes back. That's where the trading psychology comes into play. If you can learn to live with those situations, it might improve your odds of long term trading success.
What I try to remember is that it goes both ways. There will be times when a price comes really close to your stoploss and turns around. Also, I remember that in back tests these same scenarios occurred as well, so it's not unexpected that this will occasionally happen. And last thing: our FLT and LYV that hit their profit targets yesterday also came down noticeably since then, so there is reason to be thankful that we at least locked in those profits before the tumble.
I closed my ALC stock position today since it reached its time limit. That one locked in a partial profit.
I have a couple options positions that reached their time limits today. I'll be manually closing those near the end of the trading session today unless they reach their profit targets before then.
If you have any questions or feedback, I'd love to hear from you.