Anyone who has traded for more than one week knows that the market will be the first person to tell you you are wrong when you place a bad trade. Well, this past week the market did its job and let me know that I was wrong.
THE TRADES
I am a newer trader who has had the blessing/curse of only trading in a market that goes up. Over the last 14 days, there has been a lot more volatility than there normally is. As a novice, I had a mindset that the S&P 500 only goes up.
Therefore, I was entering trades with the expectation that there was going to be a rebound.
SPY over the last yearSPY over the last two weeksAs you can see, there has hardly been a correction!
$NFLX
Through the slight downtrend in the overall market, I continued to sell call spreads on $NFLX. Again, as a novice trader, I was not taking the market’s actions over my hypothesis. $NFLX continued to rally off of ATH’s and forced me to close the call spreads I had written
NFLX rallying in a weak market should have been a signThankfully, I kept my overall size very small and was able to learn from these trades. The last few weeks have shown me that successful traders are patient and able to play different markets. They are able to take in what they’re being told (sweeps, sentiment, tape, etc.) and place trades in positions that give them a chance of success. Not only that, successful traders know when these trades are not working and are able to get out of the way before being run over!
Growing Trading the Post
The last two weeks have shown the members in Trading the Post just how valuable it is to have a coach who can answer questions and provide guidance. Particularly for novice traders, it is so easy to get overcome with emotions and make stupid decisions (I know from personal experience).
The goal for Trading the Post is to continue spreading the content we offer and showing people how important it can be at certain stages in your trading career.