I missed doing a trading log for a few weeks since my day trading post so I am starting now. Please enjoy and let me know if you have any questions but moving forward I will post my weekly trading log for transparency.
Quick Recap: $450 to $149 Million compound interest challenge
Using a compound interest daily calculator, it shows that at 5% a day for the roughly 261 trading days a year, you could turn $450 into $149 million. Since the risk is only $450 the goal is let it ride while managing risk.
– Full port into a single play per day
– set a 10% stop loss
– after the gain is above 5% adjust the stop to the 5% value
– raise stop as the gains increase to always be just below the top
– if it stops out than I get the 5% gain +
– Don’t stress when it keeps running after a stop hit
January 20, 2022
Starting Balance: $1019.18
Purchase: 7 contracts SPY $454 Jan 21 PUT @ 1.30
Cost: $910.29
Sell: 7 contracts SPY $454 Jan 21 PUT @ 1.39
Income: $979.68
Profit: $69.39
% gain: 6.81
Trading Notes:
Bought on a heavy red candle
Did not set an immediate stop loss due to the volatility of the chart
Heavily watched with my finger over the sell button
Dropped to -15%
Held as the charts were showing pressing into the supply zone and was expecting a down turn. Especially since the PUTs were for a day out I was willing to risk it a bit longer
Set a Stop Loss at 1.05 just in case
10 minutes later we had a major red candle on the 5 minute and I set a limit sell of $1.39
End of day closed above $7.00
Lessons for consideration:
Could have bought in earlier at a lower premium. Was eyeing at $1.04
Happy I did not set a stop loss since the contract was a day out and there was time. I am thinking 20% is a better stop when the contract has time to eliminate cutting too early.
Stayed disciplined with cashing out above my 5%. Even thought it ran almost 400%
January 21, 2022
Starting Balance: $1088.57
Purchase: 17 contracts SPY $440 Jan 21 PUT @ 0.62
Cost: $1,003.71
Sell: 17 contracts SPY $440 Jan 21 PUT @ 0.96
Income: $1614.24
Profit: $610.53
% gain: 56.09
Trading Notes:
Watched the premium move from 0.6 to 1.0 4 times since 11am
Set my immediate stop loss @ 30% due to the consolidation and days trend
Heavily watched with my finger over the sell button
Dropped to -22%
Once it broke .7 I set a stop and kept moving it up as the premium went up
Hit my stop at .96 for all contracts
Dropped back down to .53 around 2pm
End of day closed above $ 1.99
Lessons for consideration:
Put together a formula to keep runners once a % of gain is achieved
Decide if I want to adjust my strategy for after only a few weeks
Stop trading SPY when it is moving sideways
Weekly P&L
