Hey Guys,
This morning the market is down again. The S&P 500 is around 3,650, which is down near its lows for the year.
And things with my positions got turbulent this morning. LULU and RCL both had big overnight drops and hit stoplosses this morning. I also had a few positions reach their time limits and incur losses.
I bought a new position today in the low-priced account (CALM), and right out of the gate it dropped a ton. It went down so far that it qualified for my double down trade strategy seven minutes later, so I bought another helping of it. You'll see the same ticker listed twice in a row there, but each row is treated as a completely independent trade with separate profit targets and stoplosses.
Buying that ticker today (CALM) seemed appropriate, because on days like today I try to remain calm. It was like a reminder to stay cool. When there's a sequence of losses like this, sometimes I might have feelings of frustration or fear. But I get to choose how to respond to those feelings, and my choice is not to throw my keyboard against a wall or run away screaming. My choice is to calmly embrace and accept the feelings and stick to my plan, knowing that this trading strategy has such a deep history of profitability in back tests. I knew up front about the risk and about needing to endure periods of turbulence like this to get to the long term potential reward.
I'm going to be away from my desk on Monday. The watch list will be active, but I won't be posting any new trades. I'll catch up on any emails after I get back. Also, for any trades that originally had a time limit that ended on Monday, I pushed those time limits back to Tuesday.
If you have any questions or feedback, I'd love to hear from you.