SPX finally broke above 4410. It's higher than last August's high of 4330. S&P futures touched the weekly value area high. NQ passed that level two weeks ago. RUT is legging behind. The small caps usually are the leading indicator. RSI points to the market being at the overbought level. The Fear and Greed Index is 82, which is an extreme greed level. The market may need to take a breath or P/B soon. Only the price action will tell next week.
My IBQ Netliq suffered a big 11% drawdown from 34.8K to 3101K. The options' value jumped 20% from -160K to 198K. I didn't adjust my SCs quick enough when the market was rallying. The leverage also increased by 21% from 77 to 98. The realized P/L is down $22.8K. It's worse than last week's -17.1K. The collected premiums are only $1545. I didn't trade any BF this week. I made 80 trades for the week. It's about 16 trades a day. I reduced SPX SC from 6 to 5, and SP from 5 to 4. RUT added 2 SCs from 3 to 5. It was a poorly traded week. I haven't experienced such a drawdown in recent months.
The two small accounts are deeper ITM this week. IBP collected $586. TOS had $485. The total is only $1071 for this week. I had to break the DITM SC from 1 to 2. My plan is to bring the strike prices up to exit half of it first.
Lessons and Plan:
1. I didn't have a clear plan and levels for each day.
2. I relied on hope and fear of reversal for my trade decisions.
3. My old habit of waiting to see affected my ability to adjust my delta quickly. 1. Consider breaking down the technical jargon for readers who may not be familiar with the terminology used. This will make the writing more accessible to a wider audience.
4. Focus on developing a clear and structured trading plan with specific levels for each day. This will help you make informed decisions and avoid relying on hope and fear.
5. Make a conscious effort to adjust your delta quickly and avoid waiting to see the market direction. This will help you react to sudden changes and minimize potential losses.
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