I feel that I have been in a little funk lately with my trading. Over the weekend I thought long and hard about what I have done right and wrong this month and how it has impacted my results. At the start of the month, I felt I was trading well, managing risk and hitting doubles and singles. With a good start under my belt, I started speculating in cheap options in great size trying to hit a couple of grandslams.
While I was correct in thinking these crap stocks would rally, I was early. I would have been better served buying equity, as the options expired worthless a week before the moves I was looking for took place.
So it is back to the basics. I will stop all speculative trades in options, and be patient with my equity trading, until my results are more in line with what I expect. I also will cease looking to hold things for more than overnight.
I don't need to be Babe Ruth or one of todays modern steroid using homerun hitters. A guy named Ted Williams did pretty well just hitting the ball.
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I have to say that I have been working on hitting consistent singles as well, and I am really liking it.
ReplyDeleteI have moved to trading strictly ETFs for the most part. I do run some options spreads, but rarely put on a position.. (I put one on last month and put another on yesterday for a scalp.) But, I go for .25-.50 in each trade intraday. My loss limits are no more than .15 in each trade... and it's been working out well over the last 6 weeks. I have three systems that I focus on during the day at three different times of the day. I stay focused on these and do not let myself get distracted with anything else. I know this might be limiting in the short run, yet my profitability has been good and consistent; which is way better than it has been for the passed 6 months trying to trade/learn everything at once. I like that you are narrowing to the stuff you know works. Let me know if you are interesting in learning more about my intraday systems. They are slightly different than my quant systems I was working on earlier last month.