Hey Guys,
The market flashed its volatility again yesterday. The S&P 500 dropped almost 100 points after I sent my morning email yesterday. That's the second time this week that it's happened.
That volatility didn't bode well for my portfolio this week. And yesterday, in particular, I had a number of option trades that reached their time limits. Only one came out as a winner.
I've learned from experience and research that I have to be able to live through losing trades. There is a tendency many have of thinking they need to find a trading strategy where they almost never lose. And if they have a losing trade, they might think there's something wrong, and that they need to find a new strategy.
I even used to think that way myself back in the day. And then with research and experience, I learned that losses are unavoidable. I never found any "holy grail" strategy after years of research and testing. Not even close. So even when trading with an edge, there are very likely to be strings of losing trades. The challenge I'm tasked with, then, is sticking to the plan through thick and thin so that I can benefit from any potential long term edge. It can be hard since there is real risk involved.
I took on a couple of new trades today. In the stocks account, I bought positions for CRH and UNH.
If you have any questions or feedback, I'd love to hear from you.