Hey Guys,
The market had a big red day on Friday. The S&P 500 dropped almost 200 points. This morning, it's recovered about 100 of those points. Clearly, the market has entered a state of volatility.
The market's big drop generated a number of losses for me. I had three stock trades reach their stop losses on Friday. I had two more reach their time limits this morning and end up in the red.
It's not particularly fun to live through a stretch like that! But I've live through it many times before. Just in the last few months, there have been a few different instances where the market has had a big drop and generated a string of losing trades. In each of those cases, the market eventually rebounded. But it's hard in the moment to live through since everything in the account is red and there is real risk involved.
But what I know from research and experience is that drawdowns like that are normal. They're an inevitable part of the trading journey. So as always, I stick to the plan and keep going.
I took on some new positions today. In the stocks account, I bought positions for NSC and CINF. In the options account, I bought options for WMB.
If you have any questions or feedback, I'd love to hear from you.