Week 4 was a very bad week and it has made me begin to think of ways to lower our risk. Not saying the plays are Risky but in all honesty I keep finding myself have to cancel my low stop loss because I know the play is good. In my overall reflection of week 4 I would say every serious decision was right but due to the market volatility our major loss was a fluke and it was because of a random influx that hit my stop loss I never expected to be hit.
As I write this I think my plan is to take week 5 as an off week an work to identify how to manage this challenge port for the rest of the year. I honestly am struggling with the time commitment even for a single full port play on the day.
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 24, 2022
Starting Balance: $1699.10
Purchase: 11 contracts PTON $27 Jan 28 PUT @ 1.45
Cost: $1595.00
Sell: 11 contracts PTON $27 Jan 28 PUT @ 0.74
Income: $ 814.00
Profit: $ – 781.95
% gain: -46%
Trading Notes:
This was a good set up and actually would have been sold in the positive 1 day later
There was little movement on this all day
End of day the market was having some serious volatility and the contract was down
Before logging off at 3:50pm EST, I set a stop at 50%
Did not expect the stop to hit and was swinging in to the next day
Huge by spike and hit my stop for 30 seconds and went back in my range
Next day was a positive play
Lessons for consideration:
It was a weekly so should have not set the 50% stop
Way outside my planned 10% stop but was planning to swing this
Volatility can spike at any time. Need to evaluate the overall plan
January 25, 2022
Starting Balance: $917.17
Purchase: 10 contracts SPY $426 Jan 26 PUT @ 0.89
Cost: $890.00
Sell: 10 contracts SPY $426 Jan 26 PUT @ 1.00
Income: $1000.00
Profit: $110.00
% gain: 10
Trading Notes:
Quick 5 minute scalp end of day
Lessons for consideration:
no issues here was an end of day play for a quick buy sell
January 26, 2022
Starting Balance: $1026.32
Purchase: 10 contracts SPY $446 Jan 26 CALL @ 0.94
Cost: $940.00
Sell: 10 contracts SPY $446 Jan 26 CALL @ 1.25
Income: $1250.00
Profit: $310.00
% gain: 30
Trading Notes:
Bought at end of day for another quick scalp
Quick decline in premium
Held overnight as a total gamble
Sold 1 minute into open the next day at the opening jump
Would have been negative after the first 5 minutes
Lessons for consideration:
Don’t gamble like this during a volatile time.
Was having a bad week after the PTON loss and got emotional
Risked it all, while it worked, never do this again
Weekly P&L
