I don’t like writing. I never keep a journal. But I feel like I’ve done well (despite the RSX shenanigans) and owe it to the community to share what I’ve been doing, and what has been working for me.
Quick recap since starting the challenge account - currently account value at $18k after going heavy in war plays. I made out incredibly well on WEAT, BNO/SCO, IPI and LMT (my top gainer).
RSX was a special case for most everyone as we all played it correctly, but a lot of people got caught holding into the halt. I luckily had pulled all my cost base and “some” profits, so the $12k of my funds I still had in RSX when it halted (should have paid me $30k…) wasn’t the death knell to my account that it was for many others I saw. That RSX loss dropped me back down to around $5k, which I’ve been able to push back up to the current balance of $18k since the 3-18 RSX options expired worthless over the weekend.
I didn’t start my challenge account until about a week after I watched Conq trading his account. I wanted to see how you trade and grow a small account like this and didn’t want to start until I felt comfortable with a decent understanding of it. What I didn’t realize was how many other nuanced trading techniques I would learn at the same time. I feel like watching Conq’s livestream is probably the greatest tool at learning how to trade properly I’ve ever come across. Whether it was the small starter positions with lots of powder available to average down, the patience to wait for the bid price you want to get met, making sure that the expirations are further out than I’d normally want, or just having a strong thesis to work off before entry/exit, I’ve been able to develop a lot more restraint and control over my gains/losses.
So, currently I’ve been trying to extend my wins to greater heights as I tend to be too much like JB (paper hands) and overtrade on plays where I was correct on my thesis and should stay put. It’s good to keep those paper hands for the times where I’m wrong, but I’ve been trying to develop more conviction and holding longer with the ones I’m right on. What I’ve found is that the best way to do that (for me) is to sell when I feel I should sell BUT then go and roll a smaller position into a later expiration. This lets me win (what I was looking for) while not getting that fomo from the continued success of the play. If it doesn’t continue, then I take a small loss on the extension (which drops less because the expiration is further out), but usually I find that I was right and then I make out in a day or two from having stayed in the play.
I mentioned LMT being my biggest winner, and that is mostly due to my continued play in it since starting this way of trading. I started playing it around 390, and have been in and out of it many times since then. I usually don’t keep a position more than a day or two before taking profit and rolling into later expirations (also keep the strike just barely otm when I purchase). I still feel it’s likely to run higher (as per the thread on it elsewhere on the forum), but it definitely is winding down. I am looking hard for another strong conviction play to take it’s place, but just haven’t seen it yet. I’m sure a large part of that is the uncertainty in the entire market.
Current positions in this challenge account are calls in LMT (of course), AMC, WFC, ZIM, and some new puts in AMD (off 120). Rolled LMT and WFC to later expirations today and got out of BA completely. I’m up over $2k for the day on the account.
I’ve done day trading for years, but this is honestly the first time that I feel I’ve got a firm grasp of how to make it REGULARLY successful. Valhalla has been a huge part of that growth and confidence. I don’t talk or share much (just my nature), and I feel somewhat guilty because I’ve received a lot from all of you. I’ll try to keep up with this and maybe give some more in-depth trade breakdowns so people can critique them in the near future and maybe someone finds something of worth in it.
