Hey Guys,
What a brutal way to wake up after the holiday. The S&P 500 dropped 100 points and it created a landslide with a lot of my positions.
Six total positions got closed out for losses today, four of which were due to stoplosses being hit. I only had one position close for a profit, and that one was barely above breakeven. Not only that, but on Wednesday almost all my open positions were showing a profit, and now almost all are showing a loss. That's a rough day at the office!
For me, days like these can sometimes bring up a strong emotional charge. And when the emotions are running high, that's when it can be hard to stick to the trading game plan. Yet that might often be when it's most important to stick to the plan. There is absolutely risk involved, but sometimes the biggest profit opportunities are seeded in periods where the market has a pullback like this.
I also like to remind myself that as much as this might sting in the moment, it's all part of the ride that the stock market has been providing for decades. The path to trading wealth is not a straight line. There are dips and dives along the way. Every single trader has losing trades at times, and a key to long term success is learning to live through those periods of drawdowns. This is one of those tests for us. That said, there is real risk with trading and the future is not guaranteed. That's what makes this so challenging!
I bought new positions today in all my accounts. I picked up stock for STX and PH in my main account. I got stock for BBBY and M in my low-priced account. And in my extra options account, I took on options positions for ITW, STZ, ETN, and STX.
There were a couple of stock positions that earned dividends overnight: UPS and EQH. Those boosted the profitability of the positions a bit. Anyone who held those positions as of the close of trading Wednesday and until the open of the market today earned the dividend. No action is needed to receive it; with most brokerages it will be credited to your account automatically in the weeks ahead.
If you have any questions or feedback, I'd love to hear from you.