THE TIME ADVANTAGED INVESTOR
DAY 45
The first full month was awful, with very large losses on positions fading the silver spike that were put on too early in too large a size.
Lessons learned:
Need a better process to take losses
Need to consider the propensity of positions to move together when assessing position sizing
Consider having a “time out” for an instrument when stopped out?
What else happened during Jan?
Took profits on a lot of the cocoa trade
Built out several new positions that will be shared in the coming weeks
Position spotlight: $KOLD / $BOIL ( ▼ 2.17% )
$KOLD and $BOIL are 2x ETFs intended to track natural gas futures. When natural gas plunged, I sold a few KOLD (bearish) OTM calls. When it spiked, I sold a few BOIL OTM calls (now ITM as natgas continued to rise).
These work well together; at least one will end up in the money.
Disclaimer: This is not financial or trading advice. I don’t even know if it will work. I certainly don’t recommend you do anything and have no responsibility to you under any circumstances. Don’t expect advance warning of any change in position — you will not get it. I might close or flip positions or take other trades you do not expect without notice. Under no circumstances will I have any liability to you, so be an adult and take responsibility for your own actions. If you disagree, discard this email, unfollow and ignore.