A Reduction in Exposure

This was a “grin and bear it” kind of day in the stock market for yours truly.  The morning started, appropriately enough, with my only short position ($MCD) as the lone stock in my entire portfolio in the black.  I promptly cut my position in half 10 minutes into the session, taking a small loss and lowering my exposure. 

Watching the account bleed money at month/quarter end makes for a humbling experience.  Nevertheless, I have my rules and I have my instincts (admittedly, as of late, they are off), which I methodically followed throughout the day. 

Next, I cut my latest $MSFT position in half, taking another small loss.  There is no doubt, I’m being very cautious here.  I’d rather trim my positions and miss a rebound than to sit on them and watch their value quickly deteriorate.  This is especially true when on the wrong side of simple directional option trades, as not only do you have the price of the stock going against you, but also time and volatility. 

The fire sale was almost over when I reduced my only other “full” positions by half, selling $NWL and $XRX for modest losses. 

Lastly, I decided to liquidate my remaining $DIS calls for a small profit…I think the official scorer ruled it a ‘bunt single’…though the first baseman did appear to bobble the throw.  This was an “instinctual” sell…and it looks like I was mistaken, yet again. 

My family and I are taking a Spring Break trip south to (sunny?) San Diego for a few days…I’m hoping that time away might help me to regain some of my mojo, because another week of this pitiful performance and I’d consider myself to be officially ‘slumping’. 

I grit my teeth a bit and flush when I read bloggers talking about how this was the “easiest quarter” in over a decade.  I have, undoubtedly, SUCKED ASS since the start of the year.  My lull in January can be attributed to a lack of energy/effort toward the market, but I have been strapped into this shitty office chair since mid-late February and I’m just not hitting my stride. 

The frustrating part is that I have missed out on a fantastic bull move.  Sure, the parts of my portfolio that are in a market ETF and geared toward dividend reinvestment are doing just fine…but no one comes to Stocktwits and this blog to hear about my broker reinvesting the $0.41/share dividend from my $MO holdings. 

I pride myself (and make the most money) on my discretionary trades, and right now is a rough patch.  Time to sack up, keep grinding and stay vigilant on keeping losses small.  This fever will break sooner or later, and when it does, I plan on making back everything I lost AND MORE. 

Here are some charts highlighting my latest trades.


MCD 2012-03-29


MSFT 2012-03-29


NWL 2012-03-29


XRX 2012-03-29


DIS 2012-03-29

This entry was posted in General, Options, Psychology, Trades and tagged , , , , , . Bookmark the permalink.

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