The First 100 Days…
FORGET THE PRESIDENT’S first trimester. How’d you do on your first 100 days—of trading, that is?
If you haven’t done so already, it’s time to give yourself a midyear review. The nice thing about being a trader is that you’re your own boss and you don’t have to worry about getting fired or your feelings hurt. But you still need to be fair to yourself—and honest. Analyze your winners and losers. Why did your winners win? Was it luck or was it your stellar trading skills? And did your losers lose because they were good trades gone bad or was it your own lack of discipline?
Self-reflection isn’t always easy. But when you peel back the trading onion, you may discover you might be hanging on a bit too tight to your trades. Or maybe not long enough. In love or trading, knowing how long you should stick around isn’t always obvious. Consider some matchmaking tips in “A Short-Term Fling or Puttin’ On the Ring?” on page 20 to align direction and time with your trading needs.
Remember, it’s more than the individual trades you have to look at. Each of those trades are a part of something bigger—your portfolio. When you look at it from the perspective of your portfolio, it may just open doors to creative ways to manage your positions. In “Are You Missing the Forest for the Trades?” on page 24, you’ll learn that knowing your portfolio’s beta-weighted greeks can take risk analysis to a new level. And the view from that higher level is eye-opening.
And it gets even more eye-opening when you go beyond your portfolio and look at fundamental data such as GDP, jobs, housing, and consumer spending. Getting comfy with Fed data may not have been on your radar, but the reality is the “dismal science” of economic data can have an impact on how certain sectors or stocks move. In our cover feature “Three Clicks from Data to Trade” on page 16, you’ll raise your awareness a notch and see things from a different view.
All told, by the time you read this, your first 100 days will be a distant memory. But by taking the time to reflect on your midyear P/L, taking a bigger-picture approach to trading portfolio analysis, and adding economic data to your bag of tricks, you could be in a better position for the rest of the year.