2017-12-31
Thank you for following along with me on my journey. The past year I have selected 8 stocks and I made money on 5 on them. So on balance I have about 60% win ratio. The returns were capped and I had 1 large loss of -10% due to a mistake. If this is the only time this catches me then the tuition is cheap
I exited the position and preserved capital. I then rolled this into another position that turned profitable and then 5 weeks into the new year I got stopped out. The net balance was positive which for any new business is a success. The total dollar amount was $136 on making 8 trades throughout the year using risk capital of $1,900 – $3,500.
I had attended seminar by the Institute of Trading and Portfolio Management in Jan 18. The presenter stated that there is a 90, 90, 90 rule:
90% of traders blowout
90% of their account balance in
90 days
I have survived and changing trading strategies. I had started last year using a covered call strategy and I do not feel that works with my personality. It concentrates on monthly income, but the risk is in owning the stock.
Last year was a record setting year. Capping your upside in this environment was a wrong idea. This next year I will be getting level 2 clearance from the brokerage account