It was a rough week for us at SPX Option Trader. Drawdowns are part of trading, we expect them and prepare for them, but we never enjoy them when they happen. Being on the wrong side of the market, is simply part of being a trader because we aren’t right every trade. But this past week we had 4 down trades in a row, which is highly unusual for us. The week was an abbreviated trading week as the markets were closed on Friday. So, we were down -251% in our SPX Weekly option trading and -264% in our SPY weekly option trading. This was the largest drawdown for a week we’ve had in our service, going back to March of 2016. So clearly an unusual week for us. But that happens, there will always be a new best week, or a worst week ahead of us. To be an effective and profitable trader, one must learn to accept that reality and not get shaken out when it is rough, or get over exuberant when it is good. This is why it is so important to trade a lot size that enables you to weather drawdowns, without concern. We’ve been through rough patches before, and we will go through them again. We stay consistent in our trading approach, and as we do, we will weather this storm, as we have many before. We are confident brighter days are ahead, and look forward to what next week will bring. Below are our comments for each trading day of this past week.This content is for members only.
Week in Review 4/15/2019-4/19/2019