Hey Guys,
First a change to my TJX options position: I will be closing them near the end of trading today. There is an ex-dividend date tomorrow and I don't want to hold the options through that date. I updated the website and set the "Close By" to be today's date.
The market is down this morning. The S&P 500 is down almost 40 points from where it closed yesterday, which is a big chunk of change. It's around 4,480 right now. Let's see if it stays magnetized to that 4,500 level or not.
My SLV stock position hit the stop loss this morning (the exit price was actually lower than my stop price due to a gap down). Yesterday my TSN stock position hit its profit target, but that's about the only good news in my portfolio right now. Almost everything else is down right now.
It's a good time to evaluate your position sizing and make sure you're comfortable with the risk involved. There will be more times just like this where everything in the portfolio is red. To my mind, the key is to be able to live through those periods in order to get the long term potential benefit of this trading approach. If you're feeling really stressed about the state of your portfolio right now, that could be a sign for you to consider dialing down the position size. It means the potential gains will also be dialed down, but the upside is you might improve your odds of being able to stick with it for the long term.
I picked up some new positions today. In the main account, I bought stock for BAC and EOG. In the options account, I bought options for JPM and EOG.
I own stocks for a couple companies that are reporting earnings overnight tonight: LYFT and QGEN. Those stocks might end up exhibiting noticeable price volatility as a result. I'm going to hold those positions like normal, but if you don't like the thought of the added price volatility, you can consider closing them before the trading session ends today.
If you have any questions or feedback, I'd love to hear from you.