As the market continues to hit historic highs, we’ve seen several tight range trading days again. As mentioned last week, these types of days are difficult to trade, and that is reflected in our performance for this past week. We ended this past week with -131% ROI in our SPY weekly option trading, -141% ROI in our SPX weekly option trading, -159 % ROI in our SPX Binary Trader and -8% ROM in our SPX Spread Trader. Dealing with draw downs is one of the most important aspects of being a successful day trader. Dealing with winning days are easy, it is how one deals with the down days that is crucial. A day trader must learn to control their emotions, and not get discouraged or worried about draw downs. Each trader must accept the reality that there will be down days, and down weeks. But if you have a proven strategy and stay consistent, there is no need to worry about such periods. It is not unusual for us to have a couple of down weeks in a row. We never like it, but we expect it. We simply stay consistent in our approach to trading, confident that as we do things will work out. If you find yourself getting worried about draw downs, consider lowering your lot size. It is crucial to trade a lot size that causes you no worry when down days and weeks come. Next week is a fresh start and we look forward to better trading ahead! Below are our comments for each trading day of this past week.
Week in Review 8/17/2020-8/21/2020