I’m very happy to report February was my best month in more than HALF A YEAR! I made $737.52... that represents more than a 7% return on my $10,371 account!
Here’s the breakdown of my gains for the month
Stocks - $371.52
Option Spreads/selling covered calls or naked puts - $696
Directional Option Trades - ($330)
Alright, so lets take a closer look at my stock trades. I’ve made risk management my top priority this year. Basically what I’m doing is buying somewhere around $2,000 worth of stock and then risking no more than about $85 per trade. In fact, most trades I’m only risking $35 to $50 bucks. Playing it small time keeps my emotions at bay which allows me to find an ease... a rhythm in my strategy.
So what’s my strategy you ask? Great question! And in the next few days I’ll post more details about that, but for now lets just focus on the results.
In February I had 14 winners, 10 losers and 3 washes - that’s a 52% win rate! Now lets take my TWTR trade off the table because I bought it back in November before I implemented the $2,000 per trade, $85 max risk criteria. This also means I’m going to deduct the $195 profit from that trade.
So when I take TWTR out I’m left with a 13-10-3 record, which represents a 50% win rate! My adjusted stock trading gains for the month are $176.52. This means even with a 50/50 winning percentage I’m still profitable! This is a good sign! It means I’m keeping my losses small while letting my winners run.
Here’s a look at all my stock trades for the month.
Now moving on to my option spreads and covered call/naked put plays. I had a very good month selling options! I booked $696 of profits.
Finally to my directional option trades. These are options bought with the intention of playing a move and then selling the option for a gain. As you can see I had a tough month, but I was successful in cutting my losses! I I didn’t let any run too far against me - something I have struggled with in the past.