A Volatile Week Ended Up 8-25-23

 The major indices ended up for the week after three down weeks. The NVDA ER and Jackson Hole generated some volatilities on Thursday and Friday. The majors are still under their 50 DSMA despite the bounce. The SPX downward slopping 20 DSMA is about to cross its 50 DSMA. The downside pressures remain unless the majors move back above their 50 DSMA. We may see rangebound or slightly up-price actions early next week. There are the PCE and NFP next Thursday and Friday.  

IBQ Netliq is up 3% from 336K to 346.5K for the week. The options' value is down 4% from -177K to -170K. The leverage is up slightly from 86 to 89. The realized P/L is -$40,059. It was a big hit since I had to roll out some DITM SPs with this downturn. The collected cash is $4,531. I made one BFC on Friday. I should have stayed out of the trade because of the Jackson Hole event. It was a volatile day that ended with a rally. The total positions are 11 SC and 9 SP, up 3 from last week. I made 77 trades with $243 commissions. I need to reduce the number of positions early next week. 

The drawdown in the two small accounts continued. I didn't keep my calm during the swings. I bet in the wrong direction. The positions are further ITM on both sides. The realized P/L is -3,185. The total cash collected is $2,243. IBP and TOS each made $1,211 and $1032 respectively. I should be more conscious of adjusting the positions next week. 

Lessons and Plans:

1. I should re-examine my assumptions about the direction of the market. Think of other possibilities beforehand.  My strong bias may be wrong more than half of the time.  

2.  Keep reminding myself of the professional standards and conduct. 

3. Continue practicing patience and a sense of timing. 

4. Set up the S/R levels before the market opens.  

 

 

The Third Week Down In Volatile August 8-18-23

 The major indices booked their 3rd down week in August. SPX closed below its 50 DMA. It's now back into the previous 4460-4300 balance area. It may be in a range-bound period seasonally. 

IBQ Netliq is down 4.8%, -17K from 353K to 336K. The selloff of the last 3 days dragged the numbers down. The options' value is up 10% from -166K to -177K. The leverage is also up 10% from 76 to 85. The realized P/L is $28,247. The cash collected is $1673 for the week. I gave up one BFP based on the rules. I made 96 trades for this week. It's still too high. I finally moved all RUT positions to SPX. SPX has more trading days but has a larger notional value. The total positions are 17 with 9 SC and 8 SP. The pullback benefit is over for this week. The balance is shifted to the long side. 

The SCs in the two small accounts are almost out. The realized P/L is $9419. The drawdown is flipped to the upside. I have 3 SPs are DITM. The total cash collected is only $1791. IBP and TOS received $1260 and $531 each. There was no BF trade based on the rules. The slump is well into its 3rd month now. 

Lessons and Plan:

1. The mindset of the professional trader is taking root.

2. Patience and calmness are slowly building up. I need to be more conscious during the work hours. 

3. Watch for the delta. I should adjust my positions from the further out positions first.    

2nd Down Week 8-11-23

 The major indices closed down for the 2nd week. The CPI report was slightly better than expected. It could have improved the sentiment. The August effect continues. 

IBQ Netliq is up 6% from 332K to 353K. The pullback helped to reduce some short calls. The options' value is down 11% from -179K to -160K. The leverage is also improved from 87-76. The realized P/L nicely recovered $35,172. The cash collected is $1670. I didn't have any BF trade based on the rules. I made 86 trades for the week. It is still too high for an average of 17 trades per day. The total positions are SPX 14 and RUT 2 at the end of the week. RUT is down two. I plan to eliminate RUT positions next week. The key is how to avoid the see-saw effect when the trend changes. 

The two small accounts got some relief from this pullback. The realized P/L recovered $19,768 for the two. The total cash collected is $2113. IBP and TOS received $1030 and $1583 each. TOS had one BFP win for $780. IBP is finally $589 cash positive now. It took 10 months to recover the ET 60K loss last September. It was a hard lesson that I should never forget.   

Lessons and Plan:

1. Remember to void quick trade during any major news event. The price actions tend to be volatile and deceiving. 

2. My current plan may not eliminate these DITM positions. It's like a see-saw. It breaks the balance when the trend changes. Should I just buy back everything and start fresh? 

3. Continue to set the price levels and practice patience. 

4. I am a professional trader. I must act like one. 

       

August Volatility Began 8-5-23

 The seasonally volatile August started on the first day of the month. The major indices booked a red candle for the first week of August. Vix is up from 13s to 17s. It's near the VAH daily. It appears a pullback or correction is underway. I will watch for the levels above and below to identify the trends. 

IBP Netliq is up 3.5% from 320K to 332K for the first 4 days in August. The options' value is down 7% from -192.6K to -179.3K. The leverage is down to 86 from 97. The realized P/L is -$986 during this wild week. The cash collected is $1775. It's less than the $500/day average. I didn't enter any BF trade this week. The total trades were 53 for this 4-day week. It's about 13 trades per day. The total positions are SPX 14 and RUT 4 at the end of the week. One side of the DITM positions will be off the balance when the trend changes again. 

The two small accounts improved some with this pullback. The realized P/L is $33370 collectively. IBP and TOS received $692 and $610. The total cash is $1302 for the 4-day week. I have to manage the inverted SCs and SPs from Friday's reversal. 

Lessons and Plan:

1. I must learn to change my bias quickly as the market changes. 

2. I have to be more objective with the price actions instead of holding my assumption. 

3. Be patient with the price levels and willing to miss some trades.

4. The market tends to be volatile during a trend change. 

5. Keep in mind that I am a professional trader. Act like one.  

A Muddy July 8-5-2023

 The major indices closed in rally mode for July. It matched the positive seasonality. The inflation data have shown some improvements. The Fed's 0.25-point rate hike didn't make much impact on the market. The market is in an overbought, greedy stage. August is seasonally a volatile or choppy month. A pullback or a correction could come by August.     

IBQ's Netliq for July increased only 7% from 307K to 320K, including the 10K withdrawal. The options' value is reduced by 2% from 197K to 193K. The leverage is down from 102 to 96. It's good to see it below 100. The realized P/L is only $3872. It's more like a B/E. The collected cash is $10771, excluding the $1600 monthly interest. The number of contracts is from 20 to 19. It could be more improvement. The total trades were 350 for the month. It's an average of 17.5 trades per working day. Each trade usually includes two transactions unless one is expired and worthless. The commission cost is $1373 for the month. It's 12.7% of the collected cash. I need to watch out for over-trading. 

The two small accounts are still in the mud. The cost of time and lost opportunity are worsening. The realized P/L is -$28684. It's worse than June's $25K. I kept rolling up the positions little by little. I may be too conservative in my risk control. IBP and TOS collected $4382, and $3391 for the month. They are about 50% less than the average earnings. 

Lessons and Plan:

1. I continue to improve my self-awareness and patience. 

2. Identify the trends and levels in daily practice. 

3. Keep working on my self-discipline.