The Emotional Trader

REMOVE THE NEGATIVE SELF-TALK Hey family and fellow traders/investors. Regardless of where you are in life and your trading journey I know you have had to overcome some challenges. A like that could have knocked you out of the game in the past, but you are a whole different person right now compared to two, three, or five years ago. Nonetheless, we still have negative thoughts or self-talk that seeps in our mind and tries to take up space in our subconscious. Which makes it difficult to see the full picture of what we are experiencing in our trades therefore becoming unable to adapt. So I want to share a few of my negative self-talks that take over. If we can get these on paper by acknowledging that they exist, then when they peak their ugly head we can consciously see them and ignore their negative impacts.  1.     I WILL TAKE A EXPENSE ON THIS TRADE LIKE THE LAST ONE This one is huge! I think of Erika Badu’s song “Bag Lady” back in the 90s…I’m an 80’s baby so bear with me. Bag lady w

  Long Term XLK (Rolling 4s) Play   This is a breakdown of some back testing I did on playing XLK with a LEAP option. LEAP options are 1-2 year plays using the Excel pricing sheet created by Mark Monroe to select the strike price.    Setup: Bought the EFT when the it bounced up off a key support/EMA (typically 50) and a bounce up as the EFT was up trending.    Entries: 1.       March 8, 2019 Purchased XLK Call  – Stock @ $69.95  – Expiration Jan 15, 2021  – $77 Strike @ $4.48  – 10 Contracts  – Total investment $4,480 2.       June 17, 2019 Purchased XLK Call  – Stock @ $76.25 – Expiration Jan 15, 2021  – $86 Strike @ $3.90  – 10 Contracts  – Total investments $3,900 3.       September 16, 2019 Purchased XLK Call  – Stock @ $81.05  – Expiration Jan 21, 2022  – $91 Strike @ $6.25  – 10 Contracts  – Total investment $6,250 4.       December 31, 2019 Purchased XLK Call  – Stock @ $91.40  – Expiration Jan 21, 2022  – $105 Strike @ $4.48  – 10 Contracts  – Total investment $4,480 5.       M

  Long Term NVDA (Rolling 4s) Play September 2017 – September 2020   Back again with another breakdown of some back testing I did on playing NVDA with a LEAP option. LEAP options are 1-2 year plays using the Excel pricing sheet created by Mark Monroe to select the strike price.  This back test starts in September 2017.    This one was a bit tough for multiple reasons, but I have never followed NVDA so this is really organic going back to 2017. I tried to play this setup as if I was in real time regardless of what the price is now. And as you will see in the charts what the stock did would not have been beneficial for some plays to continue to hold.    Setup: Bought NVDA when the it bounced up off a key support/EMA (typically 20ema or 50ema) and a bounce up as the EFT was up trending.  Looking to invest roughly $10,000 or less each quarter. No rolling options…simply exiting and entering new trade.   Entries & Exits:   1.       Sept. 11, 2017 Purchased NVDA Call  Stock Price Option E