Hey Guys,
This morning the market overall is up some after the poor day it had Friday, but the technology sector is still dragging and my portfolio has a lot of technology stocks in it. We're in the midst of volatility right now, which means we're still basically having our resolve tested. This is the exact type of moment that offers us a great opportunity to see how it feels to live through a drawdown. If we can make it through times like these, then we might be well-equipped to reap the potential long term rewards that this trading approach could offer.
This morning I took on another MES futures trade and its corresponding SPXL equivalent. It was the strategy MT 97 from this page for those interested. It's another one where the profit target is closer to my entry than the stoploss.
I also picked up a stock position today in the main account: LRCX. The options for it were too expensive, so I passed on those. LRCX came right off the watch list.
Speaking of the watch list, there aren't a lot of tickers on there. For my core trading strategy (which is a form of pullback trade), the trades can sometimes come in waves. And if the market goes down for an extended period, it can set up situations like this where there aren't many uptrending tickers left that can pull back and set up a trade. It actually serves as an organic mechanism for protecting our portfolio from further drawdowns in case the market drops more. Either way, I'll be ready if any of these remaining tickers comes into play. Micron (MU) came pretty close this morning to setting up.
If you have any questions or feedback, I'd love to hear from you.