When you first learned how to trade, what was it that you desired to come out of it? Meaning what was the intent on how to utilize the skillset? It could be for retirement protection, making a living so you could leave the job you’re not feeling, another stream of income on top of what you already do, the list goes on. The desire is always there initially, but the expectations are critical as well to keep the desiring rolling because it only takes a weekend for some going into Monday morning where that drive has already tapered off. Some can keep the desire, but as we all know, life throws obstacles at us and we have to take a detour which then can lead to a lot discouragement and self doubt. Throughout these times can we still have the expectations regardless of what has knocked us off course, to still believe you’ll be able to make it happen for what you wanted to accomplish. Are you putting in the necessary daily action towards that goal that keeps you motivated and consistent to make this thing come to fruition?
For me trading was something I wanted to be apart of my life, adding as a stream of income on top of what I already do or wanted to do at the time. Just staying home and being a day trader, that wasn’t it for me, but I looked at it as a way also for portfolio protection which was important for me to understand after seeing so many people crippled after the housing crash. When I first started out trading it took me a few months to even place a live trade and when I did, it was a simple covered call on GDX. Nothing exciting to make money in a day or over a course of a couple days like swing trading. Now once I started getting more comfortable in the market, I still started out very conservatively playing naked puts, credit spreads and iron condors. After that I was doing considerably well for a while, I had that moment where I took multiple losses all in a week after everything I had made over the course of a few months prior and it was a blow to the stomach where it was strong sense of defeat when I closed out the trades. Didn’t throw a pity party for myself though, eventually got back into the game, confidence wasn’t shaken, just took more care of my position sizing and back at it I was. Then it happened again, trading natural gas futures (short strangle) a strategy I had been profitable for some time playing this instrument towards the end of 2018, it started soaring at a pace that I believe no one expected and to make a long story short took the single biggest lost I had in one position and it was again a tough blow to the gut. I even had to call Tim Justice for support I was taken back emotionally by it, however once again, my desire and expectation never wavered because I know I need this to work in order for my long term plan to come true. I look back on those critical moments of trading as the strongest lessons I’ve learned and I knew that I needed to keep at the daily actions that I knew worked and believed in when my friends and family probably didn’t have the belief that I had for what trading can do for me.
The feeling I had/have when I was trading with proper mechanics, appropriate position sizing which gave me a lot ease mentally when making trades, allowed me to be the most successful and it is what kept my desire running the way it did when I was first introduced to trading. Setting money aside and protecting capital towards my account every month is what I think about all the time, because the more I continue to see it to grow, that confidence barometer keeps growing also and keeps my expectations of myself in tact to make it happen. No one is going to do the work for you and more than likely its something that not everyone in your inner circle can relate to, so it can be harder for them to understand how it is you want to accomplish what you want through trading or any other business endeavor, but don’t let that stir you away from what you see it possible if you can believe in yourself.
Chart of the Day
GDX – Gold Miners ETF
GDX has been hot lately, but if you were someone who missed out on its last run up, a swing low is looking really good right now for another opportunity to jump on the bandwagon if we can begin to see a pivot perform. Premium is juicy for this etf right now, so take your pick for option strategies, but with the way Gold is running, if you’re not normally the aggressive type, now may be the time to get out of your comfort zone!
Video of the Day
Special Webinar – Poor Boy’s Covered Call
Watch the replay from this Wednesday’s webinar from Coach Tyler Craig on the Poor Boy’s Covered Call.
Today’s line up
Traders Lounge 11 AM EST
Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.
Mind of a Trader 2:30 PM EST
Join Coach Mark for his weekly live Mind of a Trader at the Closing Bell.
Halftime Report 12:30 PM EST
The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day and fun in a way that only Matt and Tim can deliver.
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