Bears finally won the battle with help of Ebola and European economy slowing down. Volatility went through the roof. Indices had 1% movement four out of five days for the week. SPX/ES had two engulfing days back to back. I only remember another similar instance this year. All of my indices options expired worthless with 1005 profit of $2.6K since no grains options expiration. But we are in the early stage of a pull back or correction. I am prepared to take stops for some endangered positions.
The long waited USDA Oct WASDE and Production report released. The report had less bearish numbers but didn't generate the kind of seasonal lows I expected and positioned for. So many of my puts in corn and wheat are underwater now. I am still leaning toward that grains may retest contract lows. However I am under the pressure of time decay for my Oct puts. I may have to take losses with my far OTM positions and hold on to ITM positions for recovery.
The week's right, wrong and goals:
Rightness:
1. I have been patience consciously most of time. The thought of wait to see and step aside come up more often than before. Occasionally I still have impulse actions with sudden market moves.
2. I started to think longer term positions with far OTM and expiration dates. I need to translate it into planning and actions.
Errors:
1. Made two more order entry errors despite one of my last week's goals was to eliminate simple order entry errors.
2. Impulse actions. I still act impulsively when market is hot and I have the urge of do something instead of wait for the dust to settle before any actions.
Goals:
1. Eliminate order entry errors. I must change the habit of close my eyes and click, instead I need to read the entire order before release it.
2. Planning for the day. Have hypotheses of the day in writing for each market I am trading. What platform do I use for the planning? Evernote, blog or pen and paper? This is one step toward my expected professionalism.
3. Continue to observe my emotional reactions, practice patience and discipline.
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