Hey Guys,
Yesterday the market itself (the S&P 500) set up for one of my pullback trades mid morning. The market bounced off the moving average line (depicted by the Keltner Channel setup I use) and closed the day with strength. This morning it came back down and tested that moving average line again and as of the time of this writing is exhibiting another upward rebound. There seems to be a fair amount of back-and-forth in the current market condition.
I picked up a bunch of new positions today, mostly in the technology sector. In the main account, I bought NXPI and STM. In the extra options account, I grabbed options for TSM, MCHP, BX, and NXPI. In the low-priced account I bought stock for MCHP.
A number of stock positions closed this morning. SNY hit its stoploss (it actually gapped down below my stoploss price a bit). I also had four different positions reach their time limits this morning, only one of which was a win. Even though there were mostly losses in today's closed trades, I don't feel upset in the slightest. That's because losses are totally normal and part of the trading experience. We have to be able to live through losses in order to get access to the long term potential rewards this trading approach might offer.
My CNC options position came within one cent of reaching its profit target yesterday, and has since retreated. I, as always, am sticking to my rules. There's something to be said for sticking firmly to a set of trading rules. For one, it takes discretion out of the picture, and for me personally that lowers the emotional toll that trading takes on me. On top of that, it ensures that I don't go making decisions to overrule the back test when the back test has such exciting long term prospects. With that said, these trading strategies might have raw edge according to back tests, meaning that adjusting your entry or exit to some degree might not affect your long term results much and still could fall within the zone of the back-tested edge. So although I am always going to stick to my trading rules like glue, you can certainly close out trades whenever you want. You have my support no matter how you administer your trades.
I have a lot of options positions that are reaching their time limits today. I'm going to close them all out at the end of the trading day today.
Happy Thanksgiving Guys!
If you have any questions or feedback, I'd love to hear from you.