I got my ass kicked this week by the market.
It started early in the week, when I bought WORK and SPCE call options, just before the market reversed course on Monday and sold off in the final hours of the day. Because the SPCE options expired on Friday of the same week, I had no choice to cut this loser. Only to see it rip higher Thursday and Friday.
I started the week in a hole, down $1,100.
I spent the rest of the week trying to climb out of the hole, only to make the situation worse. End result, down $4,000 on the week.
How did this happen?
Getting in a hole sucks. Spending the rest of the time trying to climb out of the hole led me to making sloppy trades, overtrading, and putting on trades that I wouldn’t normally make on SPY and IWM that I told myself were “hedges” in case the market sold again.
I forgot what was working.
I forgot how I made $12,000 in a matter of weeks from May 27th to June 19th.
Nothing seemed to work.
Every trade went against me as soon as I entered it. Or so I thought.
Either way, it doesn’t matter what they did.
What did matter was my mindset sucked. I was in a bad mental state, and desperately tried to “undo” my bad trades from the early part of the week, only to have even more bad trades to “undo”.
I wasn’t doing what works for me.
I started trading options expiring this week. I started day trading more even though I very much prefer swing trading a position for 1-2 weeks.
I cut winners too soon (primarily due to short-dated options being traded).
I let losers run on too long.
I added to losing positions.
I put on positions that were not favorable from the get go.
I spent too much time this week hoping for my positions to go in my favor.
Now is a time for reflection
It’s the weekend. My trading week sucked. But I still live to trade another day.
Goal #1 and always: DON’T LOSE ALL YOUR MONEY. When the money is gone, the game is over.
I’m going to take this weekend to reflect on my trades. I will review past trades further and understand what happened and why it happened. I will try to understand what my mental state was when I entered into those trades.
Trading is hard. It’s hard to tell by all the so-called experts all over social media. They’d have you believe they make profits all day. You rarely see is the hard part of trading. The part where it beats the shit out of you and makes you question why you started in the first place.
I share this for anyone else who had a bad day, week, month, or year. It’s not easy. It’s not supposed to be easy. I knew that. You know that. So take time to reflect, take care of yourself, and objectively review those trades and improve the process. It’s the only thing I know how to do.