Hey Guys,
The market has had a lean toward green since my last email. The S&P 500 is now back around the 5,300 mark.
I hit a nice trio of profit targets this morning: TSM stock from the main account, as well as SPXL stock and STX options from the double down account. That was a nice way to start the day, and that now makes seven total profit targets hit for the week. It's a great turnaround after last week.
Yesterday I realized that I made a mistake with one of my positions. I said in yesterday's email that TSCO had gotten close to the stop loss (for my stock position) and then rebounded. I later realized that I had set up the stop loss incorrectly in my trading platform and had used the wrong price. The stop was supposed to be at 263.35, but somehow I set mine up at 262.50 in my trading platform. It was a clerical mistake on my part. In reality, the position should have already hit the stop by the time I emailed yesterday.
Any time I realize I've made a mistake, my response is to immediately take corrective action, for better or worse. In this case, the position should have already been closed, so the corrective action was to close it at the prevailing price once I noticed. In this case, I got lucky and ended with less of a loss as a result of my mistake, but it has gone the other way for me too. The key for me is to have a rules-based response for how to deal with clerical errors. In other words, I like to have rules for what to do if I inadvertently didn't follow the rules to begin with!
There have been no new trades yet today. I did end up buying a stock position for VST in the double down account yesterday.
If you have any questions or feedback, I'd love to hear from you.