Hey Guys,
The market has continued to go down, which has been painful considering how many positions I have open right now.
It can be tough to live through when just about everything in your portfolio is red. What I can tell you from experience is that it's happened before, and it will happen again. We're certainly here to make money, but not every week is a winning week. So it's a good opportunity to examine how this feels for you, because weeks like this will happen again.
If this week is too intense, you can consider dialing down your position size or taking on less trades. That will lower your risk (as well as your potential reward).
Another thing that helps me during a drawdown week like this is to ask, "How do I want to respond to this situation?" If I have a bad week in the stock market, do I want to flip out and go berserk? For me personally, I don't. I prefer to acknowledge the feelings that come up, but to stay calm and grounded. I can do that by zooming out my focus and looking at the big picture -- that I am physically safe for example. Or that I have had bad weeks in the stock market before and life went on and I was just fine. Zooming out your perspective can help to de-intensify things.
That all said, this week isn't over yet. The S&P 500 actually just set up for my main trading strategy:
You can see that the price was driving upward, and then it pulled back to the blue line yesterday. History suggests that more often than not, the price has rebounded from there. Obviously, it doesn't always happen, as we've seen from our current batch of trades. But it's nice to know the market as a whole is in a prime "buy" spot according to the back-tested trading strategy. We'll see where it goes from here.
I picked up new positions today. I bought stocks for URI and CFG in the main account, as well as options for DOCU. In the options account, I bought options for GLW and OKTA. In the double down account, I bought DOCU stock.
I have a bunch of option positions that reached their time limits today. I'll be manually closing those near the closing bell of the market today.
If you have any questions or feedback, I'd love to hear from you.