Hey Guys,
The market has not yet given us any sign of a rebound. It's been red all week long and now the S&P 500 is right around the 5,000 price mark, well below its high of 5,265 earlier this year.
I had a ton of option positions reach their time limits yesterday, and the outcome wasn't pretty. There were a couple in there that did well and helped soften the blow, like HSBC, but overall this was definitely one of those really tough weeks. Here is how each account performed:
Main Account: -4.5%
Options Account: -8.7%
Double Down Account: -2.5%
The market itself is down 2.9% over the last week. So we are not alone in taking losses this week. Whatever feelings you might have after a tough week like this, it might help to realize others could be feeling the same thing.
I also can say that in back tests, there were definitely losing weeks like this. So the way this week turned out is not some sort of outlier that we've never seen before. Back tests make it clear that there will be weeks like this along the way, and they are baked into the overall back-tested performance of the trading approach.
Also, the fact that the options account took the biggest hit is not a surprise since options trades carry more risk than stock trades (as well as more potential reward). This is a good time to check how you're feeling about your position sizing and whether it's too heavy for your risk preferences, because in order to stick with the trading approach long term, you have to be able to live through the losing weeks like these.
There have been no new trades yet today. Nothing from the watch list has set up yet.
If you have any questions or feedback, I'd love to hear from you.