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Trading Diary #3 (LULU) down more than 23%

LULU tragedy continued this morning when the stock opened down more than 23%.

Surprisingly, it didn’t have any worse effect on my account than what was priced in last night when I recorded my notes on this piece if crap.

You work hard and try to improve and make a few bucks and after you start seeing some results and improvement you get crashed.

As one trader I spoke with said:

“Trading in the stock market is the hardest way to make easy money.”

Well, this sell off didn’t hurt my account more than what I saw last night. Yes, I still did receive my margin call but it was only $38.45 dollars. Nothing too harsh to freak about.

Of course, if I haven’t overtraded my account last year and instead of dragging those trades around rather unloaded them I didn’t have this problem today.

Here is a new look at the stock disaster:

LULU disaster

My goal for 2017 was to actually unload my positions and get the account in line with my rules on how much buying power I can use. I probably need to be more aggressive in doing so.

The LULU tragedy allows me unloading at least the call side. So I closed one call which lost value and I will wait for the other one to go the same path. I might close it next week too.

LULU disaster

Surprisingly, this hiccup will have no effect on my March cash income. I still will end up March positive on cash flow side.

But my net liquidation value got hit very hard. And the net-liq is a metric I use to track a valuation of my account. From this perspective, March will be a terrible loss. But it is just a paper loss until margin calls start forcing you to be closing positions which are currently losing money. Hope I will not have to go this direction.

1 response to “Trading Diary #3 (LULU) down more than 23%”

  1. easydividend says:

    I was thinking about trading LULU’s Earnings, but i found out, that this stock gaps often at earnings, so thank god i didnt open positions before earnings.

    good luck with this one!

    best regards


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