Another Bloodbath
Dow Jones plunged yet again in what can be considered the biggest 1-day decline since early August. My trading position took a hit today after gaining quite a lot on previous trading session. The profit that hasn’t been closed was asked back by the market but the overall performance of my portfolio is still in line with a 100% a year target (currently +41%ish).
I still can’t shrug off my old bad habit. When my position took a hit, I usually over trade and I over trade A LOT. And this gives my account a disadvantage especially because the commission is hiking and the trade that I made usually does mediocre at best.
Currently heavy on cash (more than 80% cash) with market neutral position (put position on XLF and call position on NYCT earning play). With a broad market down like this, it will be no surprise that we will see overnight market in Asia will get pushed down and Europe will also feel some selling pressure tomorrow at least before Bernanke speech on Friday.
On another note, I’m going on holiday starting next week so the blog will be light on capital market content. After the holiday I’m going to try scaling my trading since I’m planning to add more cash into the trading account so starting early September, I’m going to “restart” my ROI calculation relative to portfolio. Hopefully with the new cash added, I can still maintain a good 2007 performance. So far it’s 77% between February-April, and 41% from May-August. There’s a ROI calculation reset between April and May since I added more cash to the account at the time. See you guys tomorrow!
