02/15 Daily Summary

Ok, second day in the trade, so far so good, not much has changed except that we were trading lower intra-day Today and pulled back up to the same levels as Yesterday. Today I have updated my trading log and have posted the full plan as well as the monitoring dashboard, I've been doing these for so long that trading without the dashboard and the evening game-plan routine seems weird even if for just a day. Same is true for the blog.

One of the things I'd like to call attention to is the fact we have had a few "quiet" days, as you can see on the daily spikes and the intra-day activity monitoring chart.. I am looking forward to riding at least another 10 days like that so I can get out of MAR. :)

2/14 Daily Summary

Today I started my MAR/11 position, don't have much to report, just that the contingent orders are in place. I'm looking to use Debit Spreads in addition to long calls or puts as part of my adjustments, the biggest benefit is the reduced theta hit the debit spreads provide, the drawback is their execution (remain to see how they trigger via contingent orders) and they're more expensive than the long calls or puts.

I have also started a deep practice process by back testing my trades during the down-time to review and make sure I'm watching the right factors when making the adjustments. Also to give me enough background into the best way to handle the positions when they get under fire.

1/28 Daily Summary

Just wanted to give a heads up to folks out there who are hanging on to their trades.. Notice the market is very active lately, have we awaken the "fear" giant? If you got in based on several weeks ago (quiet environment), be aware it is no longer that quiet...

FEB/11 NDX Iron Butterfly Day-by-day Review

Positive results:
FEB/11) Got real good use of my feeling/well being assessment: Identified I needed to increase well being, reduced my caffeine intake and got in morning workouts to ensure a resilience "reserve" built up. JAN was an busy month at work, with the wife pregnant and we're expecting a baby, so I needed to increase the resilience reserves.

FEB/11) Reduced caffeine intake was a great thing. Got a lot of tea in the day, reduced stress due to coffee and had reserve to evening green tea to increase focus while making evening assessment and setting up contingent orders.

Lessons Learned:
FEB/11) I much prefer entering the full position. I get trigger shy if want to scale and end up not loading the total amount of capital I want to allocate.

FEB/11) When setting up contingent orders, to avoid miss-fire I need a checklist to verify the levels. Will have one ready next month (pilot checklist style).

FEB/11) Avoid relaxing tea in the evening while setting up contingent orders. Use a light-caffeine Green Tea.

Trade results:

1/19 Daily Summary : Started the position, only filled 3 out of 5 lots, was planning on adding extra lots the next day.

1/20 Daily Summary : NDX hit my down-side contingent order, I've held on to the 2 extra lots thinking if things get worse I'll jump in.

1/21 Daily Summary : Had a very busy day at work, did not add contracts to the trade. Didn't feel it was needed.

1/24 Daily Summary : By now I have already gotten a good P/L on the current position, questioned the idea of adding to the trade. Reason why I avoid scaling: Getting trigger shy after the first lot is in place.

1/25 Daily Summary : Decided my best option was to get out, cash out with ~10% ROI in just a few days.

1/26 Daily Summary : Closed the trade early AM, had a contingent order miss-fire due to mistake setting it up the night before (was sleepy perhaps). 7% ROI, not bad for a few days of fun.

1/27 Daily Summary

What can I say, it is good to be out of the trade, I haven't looked to see how the position would be doing Today if I was still there. This is another lesson I learned: Eliminated "Would", "should", "Could" from my dictionary, I look at what is, if any mistake was done, that's ok, but there is no sense in keeping looking at what would happen if I hadn't done this, or that, etc

On the personal development side: I'll keep watching my feeling and well being with the assessment I've built.. I've also started to measure how much caffeine I'm taking on a daily basis. I've made great progress eliminating that large cup of coffee, I'm down from over 400 to 125 mg per day.. All these small adjustments do make a difference, especially when you work full time, handle family and have to plan and execute on trades. I've posted a sample of the self assessment so you guys have an idea of what I'm talking about.

1/26 Daily Summary

I've shut down the position Today early in the morning prior to starting my day at work. The reason behind is simple: I want to be out of the FEB position if the baby decides to come in the next few days... Not to mention, 7% for 6 days in the market is awesome! 1 % per day.. I'll take that, thank you, see you next month :)

I did make a mistake that got me really upset with myself: I had a mistake in my contingent orders last night, instead of trigger at or bellow 2235, I typed 2335 and 30 minutes after the opening I got filled on an extra PUT that I didn't need. That took out about 1.1% of my bottom line. While this is a mistake, I am glad it happened and I'm very happy with the way I handled.

In the past I'd be super perfectionist when it came to my trading. Any mistake, for the smallest one, I'd be super upset with myself, spend the whole day dwelling on it, complaining, feeling lousy, etc, etc... Today, I noticed, got upset for 5 minutes and proceed to handle the situation the best way possible and exit the trade. I guess it takes time to develop as a trader, and this is a sign of learning and progressing in my trading path.

So, there you have it, with mistake an all, by far a very imperfect trade, FEB paid off a nice 7% ROI. Thank you!

Cheers!
Gustavo

1/25 Daily Summary

First of, thanks for my wife and reader Dave, who gave me feedback on my scaling question. Bottom line: I'll consider this trade a 3 lot butterfly instead of the original 5 lot I was planning on entering. This makes my approach simpler, and eliminates the decision making around adding extra lots or not. At this point of the game, I'm looking for the exit on the 3 lots, it is kind of backwards to go on and add more lots so I stay longer..

That being said, you'll see a sudden jump in the P/L in my dashboard from Yesterday, this is due to the adjustment, I'm posting P/L in relationship to the capital allocate, not the capital I wanted to allocate. I guess that makes sense.. Either way, I'm looking for the exit, and may take it if we get around 10% Tomorrow or so.

Cheers!
Gustavo