Alright so I ended 2014 like a beat down dog! The market SMOKED all my 2013 and 2014 gains in 4 short months! Had it not been so damn painful... it'd have been impressive!
I learned some great lessons... namely how to better manage my capital and risk! I also learned you can lose a shit ton of money selling option spreads.
The bottom line people is this - the market humbled me, and I'm doing my best to learn from my mistakes.
So as we rolled into 2015 I cut my trading account from $20,000 to $10,000. I figured aim small, miss small right! I'm also incorporating more stock trades, as well as directional option trades. The main thing I'm doing differently though is risking LESS per trade. Specifically I don't want to risk more than 1% of my capital on each trade - so that's a $100 max risk per trade. I'm also working on my stop placement, using candlesticks to make those decisions. In the past I've just picked some random number and said, "hey this sounds like a good place to set my stop!"
Additionally I've found a few key people I follow on Stocktwits who have shown, over time, to be good identifiers of the types of set-ups I like.
I think you'll be able to see from my trades that I was able to keep my losses small. Obviously I want to make money, but right now managing my risk per trade is my TOP objective.
Here's how I finished out January (win/lose record in parentheses) ::
Option Spreads/Selling Options - $74 (2-0)
Directional Option Trades - ($42) (4-4)
Stock Trades - $339.98 (7-4)
Total January Gain :: $371.98 (3.72% ROI)
Below is a breakdown of each stock and option trade ::
Now I've definitely still got some terds in the punch bowl as you can see from looking at my open positions. My ESV, KO and T put spreads are all way too big. I also own WAY too much TWTR stock. But, I'm slowing working my way out of those positions.