Hey Guys,
The market showed strength again for the first part of the day yesterday, and then in the last hour and overnight it completely deflated. The S&P 500 is around 4,060 right now.
That's the second week in a row where the market had a big drop right when I had a large slate of options reaching their time limits. It had a big impact on the profitability of those positions.
When I saw that unfold late yesterday, my first feeling was one of frustration. Despite all the work I do on mindfulness, I still sometimes feel the tough emotions that come with trading just like everyone else. What I'm pretty good at is rebounding from that feeling.
These are things I reminded myself after that jolt of frustration showed up:
1) There have been many times where at the last minute the market has gone the other way and given me a boost right when my trades are about to expire. I can choose to proactively remember those.
2) I'm in lock step with the back test. I'm using a strategy that has decades of evidence of strength.
3) Ultimately with options, I had a breakeven week. It's not a terrible situation. It stung to see the profits disappear in the blink of an eye at the end in the last hour of trading yesterday, but I am, after all, always the one saying that there's no benefit to getting emotionally involved in a trade's outcome until the trade is actually over. And yesterday was a great example of that.
I picked up new positions today. In the main account, I bought shares of SPY and TER. In the options account, I bought positions for KKR and MRVL. In the double down account, I bought stock positions for SIVB and ADBE.
I was excited to see that position for SPY set up today. That means the market as a whole is setting up for this pullback trading strategy I use. Let's see if the trade works out in our favor this time around.
If you have any questions or feedback, I'd love to hear from you.