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YTD P&L: -0.8%

General Comments

In the past week I was able to recover most of my losses for the year. There were two primary reasons for this. The first is that my mining stocks had a good run up. The second reason was due to a really nice short on the EURUSD. I was up 1.2% on the week which puts my YTD P&L loss at less than 1%. I am basically 1 trade away from being back in the green for the year.

The Big Changes

This past month life happened and we ran into a very sudden and unexpected medical emergency. Without going into too many details, there was a surgery that was involved and a very large medical bill that will follow. Due to this need, I had to go in and liquidate almost all of my stock positions. I will likely need to withdraw somewhere between 50-65% of my account. Once these bills are taken care of I will begin refunding my account, and should have it back to where it was within a few months. What that means is that I will not be able to test my 3 prong portfolio (stocks, options selling, candlestick trading). I had determined it takes a minimum of $50,000 to be able to run that kind of portfolio and I will be short of that. I have actually come to believe it would take closer to $100,000 to $150,000 to properly diversify the way I would like

What that means is that with the remaining capital I am going to be switching to an option selling and candlestick trading only portfolio. This actually doesn’t bother me at all since options selling and candlestick trading is much more in my wheelhouse than stock picking.

Future Blog Posts

This change means the nature of my blog posts will change. Since I will no longer be doing the 3 prong portfolio, I have decided to begin a candlestick study. With the study I will be tracking candlestick trades I take and looking at a large number of metrics for each trade. I hope to then aggregate that data and hopefully improve my trading performance. Out of stock picking, option selling and candlestick trading, I have been candlestick trading much longer than the others. For that reason I am very excited to do this study.

My blog posts going forward will then be a lot more focused on candlestick/price action trading and posting trade analysis. I also still plan on doing monthly portfolio updates, but again, this will focus much more on short term options and candlestick trades. For many of you TA traders that follow my posts, you will find this much more interesting.