Feb’18 Trading Banter

The last two months have flown by thanks to a small exciting side-project.  Thus, aside from a 3-day meetup in Belgium to talk systematic trading, I have barely spent any time looking at charts since the middle of December, be that Bitcoin, the Dow, VIX or XIV.

Comments from the sidelines

I normally refrain from stating my view on specific trading matters and try to stay neutral.  This time, I’d like to make an exception & I apologize in advance.

Bitcoin, along with all the other crypto currencies, have obviously experienced a great deal of volatility over the last two months.  Personally I am only aware of a couple of friends & colleagues that have actually gone ahead and invested/speculated in Bitcoin, though they had all bought in many months ago.  As I tried to warn at the end of the last year, watching price rally and fall from the sidelines is entirely different from when you hold a position.

Secondly, last week was another great illustration of what eventually tends to happen to people who make a living (or passive income) from picking up pennies in front of bulldozer aka the short vol trade.  In my humble opinion, the same could be said about people selling iron condors (a multi-leg options trade) on the S&P 500 index or selling covered calls (another options strategy) on their stock-holdings.  Contact Karen the Super Trader for more information.

Trader Buddy Meets

Had a couple of meet-ups with one of my trader buddies over the past fortnight.  He is pleased about his recent progress in applying his discretionary rule-based trading strategy that uses a lot of the Voigt market structure concepts.  He is also finding that he is becoming a lot better in managing his emotions throughout the day and in becoming a more disciplined trader.  I have been encouraging him to also spend time in testing environments as a lot can be achieved quickly with that, if done in the right manner.  He is not so interested in that approach, as he feels best by actually trading in live conditions.  Fair go – each to their own!  Anyways, am happy that he is pleased with his consistent performance.

My trading

Am likely to have some more time available to work on my trading in the next couple of weeks.  Being away from the markets for a couple of months has helped me clear my thinking a bit and gave me a chance to digest some ideas and concepts.  With that digested thinking in mind, I will look to resume where I had left off in December.



This entry was posted in Psychology. Bookmark the permalink.

One Response to Feb’18 Trading Banter

  1. This jump in vol is no problem for expert option sellers like David, they simply ‘Adjust’ and keep on printing easy money.

    Liked by 2 people

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