Q3 has drawn to a close and I must say that I am pretty happy with how it went. And glad I did not sell in May and go away. Well…actually…I could have gone away at the end of May and then come back in July. June trading was awful. But that was soooo last quarter.
To be honest, I checked my numbers 3 times to make sure they were right. And they were. For Q3 I was +17.7%. Not so bad at all. In looking at most successful trades, a lot of them were calls. This is actually bad since I have been trying to limit my options trades and this won’t encourage that attempt at a new behavior ;)
I made some excellent trades in (and out and back in again) pure momo names. TSLA? Check. NFLX? Check. YELP? Check. Plus a few more of the usual suspects. Although — my biggest and best trade was in a former momo — AAPL (calls…doh!) I happened to own some calls *before* Carl Icahn’s tweet (aka pure luck.) I owe him a fruit basket of apples :)
My most absolute worst trade was in another momo – SODA. Ugh. Should have known better on that one though. 2nd worst trade? UVXY. I don’t think I need to say anything more about that one. Those ETFs are garbage. But oh well. I made a note next to it in my spreadsheet “Never, ever trade this again stupid” and highlighted it.
I also started taking more ideas from inside the 12631 trading room. I have typically followed chessNwine in all of his longs. I don’t short much at all though. And this past quarter I followed a few more of RaginCajun’s quick strikes and ideas from other members.
I also was able to take advantage of a few stocks that got beaten down on a single news event and make money on the quick pop up. BA, LL, WMT. This is actually why I keep CNBC on during the day as I wouldn’t notice the news fast enough otherwise.
I’ve also been trying to take more profits quicker. I promised myself that I was going to do that in my trading account. Stocks/companies that I believe in and want to keep – buy them for my 401k. But my trading account is for trading. I just don’t trust this market. So I’d rather take some profits and maybe miss out on another move up than lose them and be in a losing trade on a quick retrace. And you can always join back in if you’ve got a runner. I’ve done that a few times in the Chinese solars lately. In and out and back in (and out) again! (mmmmm….now I want a double double with cheese.)
Although what’s funny about that strategy is that I’ve not sold when a stock turns on me and then had it come right back in a day or 2 (or sometimes later that same day.) My semi-blind trust in the exuberant market working in my favor. It can hurt me too (SODA) but has frankly worked more than not so…
Of course as I say all of this, Washington is doing its darn best to wreck the 4Q. But we’ll see. I think by finding selective stocks and trading quickly, money can still be made. At least for now.
“Work smarter, not harder” ~~ Scrooge McDuck