Peace of Mind during Volatility | Daily Trading Notes - (06-21-23)

Peace of Mind during Volatility | Daily Trading Notes - (06-21-23)

Before I dive into this week's details, in part to seeing so many traders panic, flip flop, or unconsciously create technical analysis that specifically favors their bias I want to talk about peace of mind. Peace of mind while swing trading is undervalued.

Most new traders won't have a predetermined stop loss. If you do, great but understand that a 20% stop loss is very tight in this volatile market. Option Greeks like time decay or the volatility of an option contract can cause it to drop 20% even if the price doesn't change but $1.

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In short, I'm not telling people to risk more money or to be open to losing more money, but in theory, if you are not willing to at least risk half when you 'SWING TRADE' options it can be very difficult to make money on option swings. Notice I said swing trade (weeks or months before expiration), not day trade. Buying shares can hide from the option Greeks.

If I open a starter position to buy a stock at 239 and I believe it has strong support at 228 why am I getting scared, worried, and overly emotional with day-to-day movements if the stock could not get below 228?

2022 and 2025 are expected to be some of the most volatile trading years. This means we expect significant ranges. We expect $SPX to trade 100+ points up and 100+ points down in the same week. Understanding what you truly have to risk will give you so much peace of mind when trading. Please keep this in mind as you continue trading for the rest of the year. #Peaceofmind #Mentalhealth

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