Every time we enter a trade, are are subject to the changing market conditions. Just like a sailor must embrace the changing winds.
Today, the stock market was bloody red. Right from pre-market hours right through the closing bell. For me it was especially painful because of my Options Positions on TSLA.
Over the weekend TSLA dropped from 781 down to 762… This was after two weeks of dropping sliding down from high of 877 just 14 days ago. Now, I have a bullish outlook on TSLA because I believe in the company, its future, and the future it brings to the world.
But the market doesn’t care what I think. Within minutes of today’s opening bell, the stock slid down to 751 and rocked up and down until “peaking” at 745 around 2pm. Then began a freefall through the 4pm market close at 714.
What really confuses me is that there’s no clear “reason” why the market is on a straight decline over the last few weeks. The latest theory is fear of inflation as the bond market has been selling off. I don’t think that inflation will be out of control like the fear is dictating. But the selloff is
So what have I learned? Risk management needs be the top of my priority because I did not manage my position sizes. Greed is real and needs to be kept in check at all times.
Secondly, I need to trade what I see and not what I think (an advise advocated by Markus Heitkoetter). The market doesn’t care what I think. And I can’t let me beliefs cloud what the most current market trends.
So how much am I down? I don’t want to say yet… both because the losses are not realized until Friday and also I don’t want to tell my wife (yea, it’s bad…)
Maybe I’ll give an update at the end of the week… I might have to make a blood sacrifice or something like the way old Greek sailors did before a voyage.
To Be Continued…