Hey Guys,
The market is down a bit again to start the morning. There has been some red the last couple of days, but the market is still within reach of its all time highs.
I got thumped this morning on two stock trades. Both GSK and PHG gapped down overnight below my stoploss price, giving me oversized losses. The trade for GSK, in particular, was really tough.
For many traders, losing trades like those can bring up some challenging emotions. In moments like those, I try to zoom out and look at the big picture. These trades had big gap downs, but sometimes trades have big gap ups and give us oversized victories. So it can definitely go both ways, and I've lived through both sides of the coin many times. Additionally, backtests show plenty of oversized outcomes of both types, meaning that backtests already account for occasional tough losses like these. Bringing rational thought to the equation helps me manage emotional charges that come up.
I took on a couple of new trades today. I bought shares of PNC and LYFT in the stocks account. I also have a buy limit order in for the LYFT May 8 12.50 strike option at 1.68, but it hasn't filled yet. We'll see if that or any other option orders fill today.
If you have any questions, just reply directly to this email.
Eric