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Posted by Martin December 11, 2017
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November 2017 results


November 2017 is over and it is time once again to review my accounts and performance.
 

As of today, I manage four accounts (my own) and one client account. Here is a list of accounts I manage and review in my monthly reviews her on this blog:
 

TD Ameritrade – trading account, taxable
IRA – retirement account, pre-tax deferred, former 401k account
ROTH IRA – trading account, after-tax deferred
Lending Club – P2P lending, taxable

November 2017 was extremely good month and I made good income trading options. Let’s take a look at each account individually:

 

 · ROTH IRA account:

 

I am polishing this account to bring it up to follow my 2018 options strategy I published yesterday. That means that I am bringing my options trading in line with the strategy, stop trading options against stocks not in my watch list and I also will be removing non-compliant stocks from the portfolio.

I started doing this by removing PSEC, and LGCY. Other stocks I plan on keeping for now, but only a few will be used for further accumulating (only those which are in my watch list).

My options trading in the ROTH was limited to available cash and I only made $125 dollars in premiums and $87.09 in dividends. It is in line with my previous performance and in the coming months I expect this to improve and grow my income which will be used to purchase new shares or accumulate and re-invest in options trading as per my strategy.

 

November 2017 net-liq: $23,020.51  ▲ (up by $161.64   0.71%)
November 2017 dividends: $87.09   (down from previous $88.60)
November 2017 options: $125.00   ▲ (up from previous -$4.04)
XIRR: 9.01%    

 


 


 
Monthly dividend Income:

 


 
My dividend holdings:

Options Income
(Click to enlarge)
 

 

 · TD account:

 

Trading account was very successful in November 2017 and we generated nice income from options. We continue cleaning the account from bad trades and use the income proceeds to do so (for example in December we may use November income to close some bad positions and offset the loss). We will also bring this account up to our strategy rules but it will take longer to do it. We are taking only a few trades, mostly rolling or adjusting the trades as needed. No active trading as of now.

 

November 2017 net liq: $25,067.45   (down by $115.43;  -0.46%)
November 2017 options: $2,094.64   ▲ (up from previous $523.34;   8.36%)
XIRR: -22.81%%    

 

Month-to-moth trading results

Trading results
 

(The red dots on the chart indicate income estimate, blue bars actual earnings.)
 

 

 

We are presenting you our month-to-month business performance review:

 

 · Lending Club

 

Lending Club is still showing one note delinquent which still keeps me annoyed. But I decided to give it a try so I will continue the course and see if it really makes any sense to invest in P2P. But I am refusing to put more money against this vehicle. I deposited $500 dollars and that’s all I am willing to play with as of now unless proven that it makes sense. If even after losses from delinquent borrowers the account resumes its growth then I might consider adding more money to it.

As of today, I consider it a lost case. Still.

 

November 2017 net liq: $499.41   ▲ (up by $2.17   0.44%)
November 2017 interest: $8.89   ▲ (up from previous $5.17)
XIRR: -7.94%  

 

 

 · IRA Account

 

I started trading this account in October 2017 and I am already trading it according to my rules mentioned in my yesterday’s post. So trading is smooth and profitable.

I want to reach the growth rate of my former 401k account and grow faster than that. I hope, I will be able to do it. As of now, after two months of trading, my former 401k CAGR was 24.84% after 9 years in the plan, and the rolled IRA’s CAGR is 16.72% after two months in the account. I consider it a not bad result so far. Let’s see how next month will do.

 

November 2017 net liq: $88,574.19   ▲ (up by $979.33   1.12%)
November 2017 options: $2,567.00   ▲ (up from previous $313.00)
CAGR: 16.72%    

 

 

 

 

 

 

 · Conclusion

 

My outlook for December 2017 is still bullish (in fact, I think the whole year 2018 will be a strong bullish rally, unless the economic expansion changes).

Lately, I had a discussion at Stocktwits… Sometimes very “interesting” and fiery with all the crystal ball owners.

They drive me crazy.

And I think, I am becoming and old fart, grumpy one (the picture in my profile is about 10 years old, that’s when I was young and handsome). Sometimes I like to tease them for their art (which I call a coloring book for kindergarten kids – that makes them furious as they spent hours and hours creating their charts and I downgrade it to a coloring book). But lately it makes me allergic to all sort of predictions. They are in fact worthless.

It took me two years to grasp the psychology of trading (and I still think I am not there as it is an evolving process), and by the way, watch the recent Bitcoin mania closely as you are witnessing craziness and idiocy live right in front of you, you no longer need books to read about a crash in 1932, 1987, 2003, 2008… it is all happening again, so watch it closely and learn from it.

So, what matters in the market?

It doesn’t matter what the market does or wants to do and what the so called gurus think the market will do tomorrow or in the next five years.
What matters is that you know what you will do when Mr. Market throws at you any of his/her obstacles. Always have a plan what to do and minimize a loss or avoid it whatsoever.
Trade what you see and not what you think may happen (some go even further and say what “will” happen). It doesn’t matter how long we are in a bullish trend, it doesn’t matter what the PE of the market is, or what the current valuation is (because what is expensive today, can become even more expensive tomorrow – again, just look at Bitcoin), or if a trend lasts 2 years or 20 years – it all means absolutely nothing.

What means/matters a lot is that you know what to do when the music stops… And this is the hardest part of trading! You see it happening and you stop believing what you see, you get frozen and paralyzed and you lose it.

Many spend hours drafting their charts predicting reversals and when the reversal happen they still miss it. Don’t be one of them.
 

Chicken Little
 

As long as we see this improvement there is no need to be selling your stocks on valuation. Instead, buy every dip you can.

 
What do you expect from the stock market in December? What is your strategy for the rest of the month/year?
 




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Dividend CCCs Link


Over time my trading strategy evolved. I went from chasing high yield to chasing high options premiums and now I realized that it is all futile. And dangerous.

So, I am now in a position that I am OK collecting a few dollars every month or week as these small payouts will compound and grow large. It is more important for me now to preserve my account and keep trading.

Before, when trying to sell options I thought selling options to collect $15 dollars premium is not worth it. So I was chasing big premiums such as $400 dollars. Today, I am sitting on a few trades stuck in them, trying to roll them to get out as a winner, or close them and take huge losses.

I was thinking that selling options against good quality stocks and collecting only $15 dollars per trade is worthless so I took high flying stocks such as US steel (X), or TECK, or LULU, MNK (fortunately, I am out of this one), or WYNN… All bit me hard for being greedy.

On the other hand all my small premium trades against good quality stocks such as JNJ, T, BAC, BA, O, etc. are all performing well and keep bringing small dollars every week or month.

Just in the first week of December 2017 I could make over $700 dollars in premiums trading these “little”, lazy stocks! And I keep trading in lieu of sitting on my hands and waiting for those bad stocks to come along so I can get out of those trades.

 

I do not know if this is something you need to learn the hard way because we do not listen the experienced traders or it is just me stubbornly trying to prove to everyone that I can do better.

Many times in the last year or two, even in this extremely bull market when everyone makes money, I still had a few occasions where the stock position gave a hard time. It could be a hard time to upside or downside. And I realized that it was the high flying stocks which were the culprits. Never positions against good dividend blue chips.

And then I came to realization that I needed to change my strategy a bit. Modify it. Trade safely and not chase premiums at all cost as sometimes the “all cost” can be very costly.

I therefore modified my strategy to trade put options against dividend growth stock – dividend aristocrats (or Champions). I allow for a few exceptions using dividend contenders or Challengers, but mostly stay with good high quality stocks even though the premiums collected will be lower.

 

 · My 2018 Options Strategy

 

My stock selection process and trading strategy is now as follows:
 

1) Choose 30 shares from the Dividend Champions list.

2) Select 30 shares from the list which offer options, weekly, or monthly, and have enough put and call strikes available.

3) Select stocks which offer min. $15 premium on as short day to expiration (DTE) as possible (ideally 7 – 10 days or more)

4) Check stock list regularly (ideally monthly) and when any stock is removed from the list, remove the stock from watch list, sell all positions and stop trading options against the stock.

5) Sell puts against these stocks.

6) Roll put options to roll assignment as much as possible, if rolling is not feasible, accept assignment.

7) Once assigned, keep the stock, collect dividends.

8) Start selling covered calls.

9) Roll calls up (or down) as much as possible to avoid assignment.

10) When rolling is not feasible or possible, accept assignment and sell the stock.

11) Rinse and repeat.

 
Use the above process to build a strong dividend stocks portfolio with these rules:
 

12) Use 50% of options proceeds (income) to buy dividend champions stocks either directly (if not enough cash yet available) or via in the money puts and assignment.

13) If the monthly income from options is higher than $1,000 dollars, use 50% and buy shares of dividend champions which are in a correction mode.

14) If the monthly income from options is less than $1,000 dollars, use 50% of 6 months combined income to purchase dividend champions. In this case, purchase stocks in August for January – July combined income; and in January for August – December combined income.

15) Reinvest dividends either via DRIP or direct reinvestment.

16) Sell covered calls against these dividends only when a CC can have strike above the cost basis so if the stock is called away it is for a gain and not a loss.
 
 

To be able to follow my rules above, mainly the proper stock selection to trade, I placed a Dividend Champions link on my blog menu. I will be updating this list every month as much as possible, or at least once or twice every year so when a stock in my watch list is removed I can react and remove it from my list too.

Dividend Champions link

 
Note: The list is David Fish’s list and free for every dividend investor and free for non-commercial use. I would like to recognize and give thanks to David Fish for compiling and maintaining this list for small guys like you and me.
 

 

 · My 2018 Watchlist

 

Using the process above, I created my watch list for 2018:

 

2018 Dividend Champions watch list

 

The list above (and the shares owned) are for my IRA account but I will be using the same watch list for my ROTH IRA and TD (trading) account.

 
I wish you all good luck in 2018 investing or trading!
 




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Posted by Mark Pokorny December 09, 2017
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How Much Should You Be Spending on Home Security?

How Much Should You Be Spending on Home Security?

Most people only buy a couple of home security systems during their lives, so it’s easy to understand why they don’t know how much they should expect to spend on one. The fact is that the price of a security system will depend on the type of system that the home needs. The price range is fairly wide, but there are a lot of ways to cut down on the cost without compromising the system.

Basic Pricing

The cost of home security can range from a few dollars to install a decent lock on the front door to a couple thousand for the most advanced systems. Homeowners who need an average level of protection should expect to spend $500-$100 on their system, with added costs for people who need lighting or security camera coverage on large properties. People who want a monitored system should expect an additional cost of $30-$100 each month.

That may seem high, but it is much lower than the cost of replacing valuables after a robbery. The systems are also quite durable; the initial cost is not a recurring expense. There are even ways for smart shoppers to cut down on the price, so people can usually afford more security than they first believe.

Saving Money

There are two major ways to reduce the price of a security system. The first is to opt for package prices when they are available. Security companies often bundle alarms, cameras, services, and other security assets together for sale. These packages normally come with significant discounts, so they tend to be the best deal for people who can find a package that meets their needs.

Some people can also get discounts through their home insurance companies. Some companies work with specific security businesses to get discounts for their clients. The clients appreciate it because it saves money, but the insurance companies also benefit. They are less likely to have to pay out on the policy if their clients have security systems, so they usually encourage people to install them. In some cases, they will even offer discounts on insurance premiums to provide another incentive. Taking advantage of that can often cover most of the cost of a system within a remarkably short period.

The Price of Safety

The price of a security system will depend on the size and type of system that you need, but it will be quite affordable. When compared to the potential cost of getting robbed or injured, most systems turn out to be fairly good investments. As long as you keep your needs in mind and shop around to find a good deal, you should come out ahead on your security system.

References:

Home Security Decreases Homeowners Insurance

Security System Prices Comparison

Top 10 Reasons to Install a Professional Security System




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Posted by Mark Pokorny December 05, 2017
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How Your College Degree Impacts Your Investing Ability

How Your College Degree Impacts Your Investing Ability

You probably already know that a college degree is beneficial for many reasons, ranging from job security to career satisfaction and even the legacy you will leave for your children. There is yet another benefit to obtaining a college degree, although it may not be directly apparent. That personal finance class during your freshman year and even the algebra course you slugged through, just because you needed it for your general education requirements, might not be so worthless after all. The liberal education structure that most college degrees are based on (yes, even degrees in music or psychology that are quite remote from calculating the area of a circle) equip students with a solid base of general knowledge that can be applied to many other areas of life.

You don’t need a college degree to invest, but you do need significant knowledge of financial affairs. Also, a willingness to “learn the ropes” of investing in the specific field in which you are interested (stocks, real-estate, etc.) and a primary mathematical ability are essential. All of these tools can be gained through the pursuit of a college degree. A college education develops work ethic as well as knowledge, a skill that is useful for improving a lifetime learning mindset and increasing your earning power as an investor.

Accounting Degree Benefits

Certain degrees are more helpful for investors than others because their coursework is specifically geared toward helping students enter careers in fields that are firmly related to financial investing. For example, an accounting degree provides a broad knowledge base of financial management and taxation, among other similar areas of expertise. Typical courses that compose an accounting degree include Principles of Managerial Accounting, Cost Accounting, and Analysis of Corporate Financial Statements. Fortunately, many online accounting degree programs can be implemented into busy lifestyles. This implementation allows many people to gain more in-depth financial knowledge and abilities and, as a bonus, streamline their investment endeavors.

Self-Sufficient Investing

Many available investment options don’t require a specific degree in the field of finance. However, whatever college degree you may have already can be helpful — and even save you money. A college education often develops self-sufficiency, which is vital to your success with any goal. According to College Plan, “For many who attend and live at school, achieving a bachelor’s degree is a crash course in time management, self-control, basic life skills (like how to make delicious dinners from a microwave) and much more” (https://www.onlinecollegeplan.com/bachelors-degree-change-life/). With stock and bond investments, individual investors have the option to manage their stocks or pay for professional management of their finances. A willingness to learn and essential mathematical expertise can help you to gain confidence in managing your investments, cutting the need for an assistant and the associated charges.

Responsibility for Your Investments

Another investment option is real estate investing, which often require a significant amount of time and effort. However, a college degree can be useful here as well. Many real estate investors are landlords who make their money by purchasing a specific property and renting it out (https://www.investopedia.com/articles/pf/06/realestateinvest.asp), which requires a much higher level of responsibility than merely waiting around for your stock assets to grow. Responsibility is a necessary quality for the attainment of any college degree. You must learn how to manage your time to maintain your grades efficiently.

Conclusion

A college degree is useful in a variety of ways because it equips you to handle different life situations. Your investing ability is just one example of the impact your college education can have on your personal life.

Sources

Investopedia

WGU

Wall St. College

Marquette University




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Posted by Mark Pokorny November 30, 2017
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How Do I Bounce Back from a Foreclosure Threat?

How Do I Bounce Back from a Foreclosure Threat?

If you were recently on the brink of foreclosure or if you are facing this possibility today, you understandably want to take necessary steps to secure your personal financial health. Your goals may be to protect your assets and to hopefully stay in your home. In some cases, homeowners can accomplish all of these goals, but you should set realistic expectations about the possibilities. These are some of the important steps that you could take to get back on track.

Adjust Your Budget

There are many reasons why you may have fallen behind on your mortgage payments, such as the loss of a job or a serious illness. Regardless of the cause, you must actively take steps to improve your finances as soon as possible. If you do not already have a budget, now is the time to make one. After you have created your budget, take a good look at it. Are there areas you can cut back in? Are you saving enough money to avoid another disaster? Remember that shaving $20 here and $50 there may not sound like a lot. However, when you analyze each separate expense with the goal of reducing it in some way, you can potentially save hundreds of dollars or more each month.

Talk to Your Lender

If you have not already done so, you need to reach out to your lender. Renegotiating your mortgage is a possibility, but you need to discuss your situation with your lender to determine if a new structure for your loan can be established. If not, you may be able to qualify for one of the housing assistance or mortgage relief programs. According to Dickson Frolich, one of the best programs for restructuring your mortgage is the federal government’s Housing Affordability and Stability Program that aims to help people who owe more than their home is worth. Speak with a mortgage broker for information about these programs and to determine if you qualify.

Think About Moving

You may want to stay in the home that you know and love, but this is not always possible. If your house is foreclosed on, you could lose all of the equity that you have established in it. When you sell the home before the foreclosure occurs, you could retain your equity. In addition, you can avoid having a foreclosure reported on your credit report. This negative mark on your credit report could affect your ability to get financing for years to come.

A pending foreclosure is a serious matter that requires your prompt and devoted attention. When you take thoughtful and strategic steps quickly, you may be able to reposition the situation so that you can enjoy the best results possible.




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Posted by Martin November 25, 2017
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Why Bitcoin is a mania and fake currency, faker than the dollar


Bitcoin had a tremendous run in the last year or two. Unfortunately, it is creating a fake sense of mastering the world of investing and invincibility. Many people entering into Bitcoin think that they mastered investing and nothing can go wrong because they have a strong understanding how to invest, that bitcoin is a new future, amazing technology, and it cannot be controlled by any government.
 

They dismiss any warning or criticism by saying that we do not understand bitcoin and thus cannot see what they see.
 

I do not consider myself an investing or trading guru. I started investing and trading in 2006, so 11 years ago. It cost me a lot of money learning the hard way how the market works. But I know one thing for sure and to know it no one needs to be a guru: it doesn’t matter what you are involved in, the trading/investing principles will always be same.
 

It is shocking to see how many ignorant people are now involved in buying bitcoin with no understanding those same principles which cost me tons of money in the past learning them. And I can see them doing the exact same mistakes, same ignorance, same arrogance.
 

Many bitcoiners access purchasing BTC with no rules nor strategy because they think they do not need any. “Bitcoin is different, it is not a rigged stock” they say. Many invest with no slight clue of what they are doing. Many invested in about a year ago or less, now they are sitting on nice gains, and they think they are now gurus of trading. They advertise and try to sell you more bitcoins because they get referrals. And they deeply believe that this is exactly how investing or trading world works. It is that easy! You buy a bitcoin, sit a bit, and turn it into huge gains. Almost like when people were buying several houses to flip them in a month for huge profits…
 

When was it? Ah, about 10 years ago, in 2008. A sad thing is that many bitcoiners were born in or after 2008 or were too young (5 or 6 years old) to grasp what was going on around them with the housing market. They do not have the knowledge. So telling them that what they are doing resembles the housing bubble means nothing to them.
 

Bitcoiners confuse demand in BTC with value and consider BTC undervalued at any level. When I asked them where is the value of BTC and whether they consider it undervalued or overvalued all of them (ALL!!) said that “bitcoin is still undervalued because it is a new technology, new economy, new world, new currency which cannot be controlled by any government. And the value is in iut because people think so and they want BTC and because they want BTC it is the value of it”.
 

How naive!

This will not end well.

The more I listen to bitcoiners praising BTC the more I see another resemblance with dot com bubble. Back then, investors too believed in a new technology, internet companies changing the world, they too were considered not to be regulated by the evil government because they could operate via free internet. And once again, the bitcoiners dismiss this argument too. Bitcoin is different. Well, it is not. It is not. And this mania will end one day. And it will not end well.
 

Here is a simplified look at what bitcoiners have wrong:

 
USD

JNJ

dot com

btc
 

Bitcoiners have two choices, they would either listen to others and approach BTC with caution or keep fooling themselves.

 




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Posted by Mark Pokorny November 17, 2017
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5 Red Flags to Look for in Real Estate Investments

5 Red Flags to Look for in Real Estate Investments

Depending on the circumstances, real estate can have enormous investment potential or be a complete disaster that drags you down financially. The key is knowing when a property has potential or screams disaster. Fortunately, there are some red flags you can look for to help you figure it out.

No hard data

If you’re buying an investment property to rent out, you’ll want details about the neighborhood. How many other homes are rentals, how many are vacant, what’s the crime rate, etc.? If you can’t get these details from the seller, consider it a sign that the neighborhood probably isn’t one you want to invest.

The math doesn’t make sense

You want to make money on this property. Naturally, you’re going to try to talk the seller down on the price, especially if it’s been on the market for a while. If they refuse to budge, ask yourself why. If the price is already higher than you’d expect, and they’re not budging, you should walk away.

High maintenance

On paper, it looks like a significant investment. But when you look at it with your own eyes, you see all the investments you’d have to make in repairs and upgrades before you could even begin to turn a profit. There’s nothing wrong with making a couple of repairs or updates to a new property. However, if there’s a lot of work to be done (especially if it’s work that’s not included in the advertisement), it’s probably not worth your time or money.

Bad or poor neighborhood

It might be a high crime rate. Maybe it’s bad schools. Or maybe it’s a neighborhood that’s in a very rural area with a long drive to anything. Whatever it is, if the neighborhood has a reputation for being unsafe, bad, or otherwise undesirable, that reputation won’t go away anytime soon. You can’t throw enough money at that property to make it worthwhile.

Government is not landlord-friendly

They may require annual inspections, special permits, or have created eviction laws that are so strict that you practically can’t evict a problem tenant. Whatever it is, it may be more hassle than it’s worth.

A qualified real estate lawyer can also help you with all of these red flags. Hiring a good lawyer can ensure that, whether your gut tells you something’s wrong or not, you don’t end up getting in over your head.

 




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What’s Responsible For The MLM Explosion in the United States?

What's Responsible For The MLM Explosion in the United States?

Social security had a deficit of 68 billion dollars last year. They collected less than they needed to pay for overhead and benefits. Could this explain why thousands of individuals in the U.S are signing up as distributors in MLM companies every week? Below are reasons people join MLM brands like doTERRA and Cutco:

 

Escape from 9-5 Drudgery

Some people don’t find satisfaction in their 9-5 jobs. This is why, according to Workplace Psychology, results-only work environments have been growing in popularity since 2001. MLM companies encourage distributors to aim at personal financial independence. While a majority of those who join MLM companies fail, there’re some who succeed. People who work hard and do the MLM business right may one day afford to quit their jobs.

 

Desire to be Self Employed

Almost every employee dreams of becoming their own boss someday. Some professionals start side businesses while still employed. But running a small business while holding down a full-time job can be challenging. MLM companies such as Mary Kay Inc. and NuSkin can help you start your inventory with minimal startup capital. Moreover, MLM corporations own systems that handle many business operational aspects for their marketers, making them attractive options for hedging against risk. Sole proprietors in traditional businesses usually manage everything and incur all the accompanying risk personally. Even when a major brand is providing you with a lot of assistance, though, you still need to be careful about how you manage cash and investments in order to keep the sales pipe flowing.

 

Make Money

There’re two ways you can make money in MLM. First, you can make money selling the MLM Company’s products. Second, you can make money when your underlines sell products. You, therefore, have to recruit like-minded people into your organization continually. Failure happens a lot, and many quit. Those who endure can make considerable amounts of money in MLM brands.

 

Desire for Personal Freedom

Full-time distributors work for themselves. There’s no manager to give orders. Distributors draw their schedules. Furthermore, direct marketers manage their time. Independent-minded individuals might find the MLM model suitable for their personality.

 

Networking Opportunities

Network marketing offers new distributors an opportunity to meet and interact with successful direct sellers. Successful distributors may inspire you and other marketers down the multilevel structure to work harder and become successful too. Additionally, you could become friends with some of the network marketers you will meet.

 

Having a well-paying job is nice, but there’s a lot of economic uncertainty today. Relying on one income could be risky. Fortunately, there are many ways to create as many income streams as possible. But success in the network marketing industry requires hard work and dedication.  Once you’re making serious dough, you’re going to need help investing it wisely. You need someone in your corner to help you understand and execute on investment strategies. Let me be in your corner.




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Posted by Martin November 15, 2017
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Transportation index (DJT) points to economy slowdown, so they say…


Transportation index (DJT) is usually considered a good indicator of the US economy.
 

An old say goes – “manufacturing makes, transportation takes”. Transportation is considered a leading indicator and usually slows down first before we notice in any major indexes or economic reports.
 

Some investors use DJT for economic forecasting.
 

There is however a major issue with this. Even transportation works in waves. You have weeks or months of slowdowns and weeks or months of strong transportation demand. Saying that we are in trouble because DJT is in decline may not show the entire picture.
 
It is definitely a concern to pay attention to but not to panic and close all your position or go 100% cash.
 
Below is a chart showing DJT in correlation with DOW (violet color) and S&P 500 (blue color). As you can see, we saw three slowdowns in DJT and three times the markets responded to it. But then the index rebounded and the markets saw another all time high rally.
 
So add the overall economic growth (GDP reached 3% for the first time in a decade) and you will see that this is probably just a dip.
 
I added 5 year and 20 year charts for perspective. As you can see, the transportation is still growing well and there is no concern over the economy and its growth. Of course, it may change all on a dime so keep an eye on it but do not overreact.

 
S&P 500 intraday

S&P 500 intraday

S&P 500 intraday
 




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Posted by Martin November 15, 2017
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Those were the days


There are days when you don’t want to have too many trades on. Today is one of those days. S&P500 was down 20 points in the morning (it recovered all morning losses already, or almost all).
 

Selling like this have negative impact on the comfort of your trading. So if you have too many trades on, short on available cash (or God forbid all in) days like today will crush your mood significantly. When you wake up in the morning and see all your positions red you will start panicking and acting irrationally (if this ever happens to you, than before you touch your keyboard, close the computer and go outside. Go away from it and forget that there is any Wall Street out there. It’s not worth it to act under a heart attack…
 

So, stay small. Set a limit of how much money you can commit to trading and do not exceed that limit. No matter how tempting it may be to open yet another trade. Set a limit which will make you comfortable. Start with 10% for example and as you gain confidence, add a bit more to it. But never exceed that limit. Unless you are happy to lose all your money.
 

S&P 500 intraday

S&P 500 intraday
 




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