Trade When It Makes Sense (and don't when it doesn't)

THE WEEK

We had  extreme shifts up and down all week with higher than normal trading volume.  There was a general feeling of a down trend but it wasn’t clear day-to-day which way the Market would move.  This uncertainty caused implied volatility to spike up.  

The higher Implied Volatility also increases option prices making some trading styles not set up as good trades.  It was also the end of the quarter with many funds making adjustments to their portfolios

LOOKING AHEAD

Some Impactful government announcements this coming week:  PMI, Crude Oil Reserves, Septembers’ Unemployment Rate plus FOMC chairman, Jerome Powell, is speaking on Monday at 11am Eastern.  All of these usually have a big impact on the Market.  I am not going to hazard a prediction for this coming week’s trend.  Who knows how the traders will react to the announcements!  This also means I won’t be placing a lot of new trades until I have a clear picture of how the Market will react.

HOW AM I DOING?

My results were OK but nothing to do cartwheels over.  I am still dealing with one stock I got put to a couple of weeks ago.  I have been selling covered CALLS waiting got the price to recover.  All my trades and journals are posted on my website every day.

One of my habits is to constantly evaluate the results of my actions.  I did it in my athletic life;  I even do it with my housework asking myself what is the easiest and most efficient way to complete tasks I am not fond of doing.  I do with my trading, too.  Over time, this evaluation process has greatly improved the way I trade and given me new insights.  That is the subject of this week’s webinar

THIS WEEK'S DEEP DIVE

How to set up and evaluate your trades each quarter For GREATER FUTURE PROFITS