Showing posts from January, 2020

The Whimsical Mind of a Trader!

Last week I posted about Walmart (WMT) option [Apr17'20 115 p @3.95]. The original idea was to hold till earnings in February in hopes to get a good move down in my favor.  Today I closed WMT Apr17'20 115 p @4.35. My current trading strategy is based on managing a portfolio of long and short stocks, actually, Interactive Brokers (IB) selects the stocks in my "portfolio builder". I have been buying puts based on the short stocks IB selects; the idea is that I will have less of an emotional attachment to the stocks I choose to trade options.
Now back to why I closed WMT, I noticed IB switched WMT from short to long in my portfolio.  As for today, IB's selection of WMT to be long was my only motivation to close out my WMT option. I have a proven track record of taking a winning trade and watching it go against me; hence why I have purposely given up a large part of my decision-making process in how and when I trade... so far so good for 2020. 

Another Option Trade [Bot 1 Apr17'20 115 p @3.95]

Last Tuesday I bought Walmart (WMT) Apr17'20 115 p @3.95. As of today, the position is down 8.13%, however, I will hold till earnings are released on February 18.

The lack of technical analysis is intentional, I have traded long enough to know that drawing lines on charts is akin to what I hope will happen with a future price. Hope is not to be confused with predictions, predictions can become a very personal clouding judgment. In the chart above, I am hoping that WMT price will retrace below 115 toward 110 where I will close my position immediately for a decent profit... I hope.

Has The Ship Sailed On Catching The Bull Market?

Have you done well through this bull market, if not, are you considering getting long to participate?
Dow performance 2019 was above 18%... will 2020 be a continuation of the bull market?
Retail traders who have done well in 2019, were able to stomach numerous pullbacks that scared a lot of other bullish positions to cut their losses while trapping bearish traders attempting to short the market. Those who did not do so well... If your performance was subpar, you probably either over traded or you lost the majority of your trades trying to short the market. In most cases, it's a combination of the two.
"No trader has ever wished they made more trades after a poor trading year. In a bull market, being long and not getting in the way of profits is the real labor of trading."
SPY 331.51

Predictions are free. I believe a market pullback is near, however, I am a broken clock stuck on bearish.

To be bearish this market is akin to staring down a bull, pun intended.

IB Trying To Compete

Happy new year!
The first post of  2020 is about a broker?  I have no affiliation with Interactive Brokers other than I use their brokerage services... sometimes reluctantly. Below is an email I received from IB introducing fractional shares, I am a long-time jaded trader, I see it as another attempt at getting more money from underfunded retail traders. IB knows they have to shake things up to stay relevant with retail traders, the past decade has seen the rise of FINTECH.  ...
Dear Client:

We would like you to know that you can now trade fractional shares and indicate the amount you want to buy or sell in dollars, rather than the number of shares. In fact, you can buy as little as one dollar's worth of almost any U.S. stock, even expensive ones like Apple, Google or Amazon.

This has become necessary as individual stock prices have risen and it has become more expensive to buy round lots. As a result, when money managers on our platform want to create precisely balanced portfoli…

Let's grow our profits together!