Today, SPX closed at 2152. It solidly broke the previous all-time high of 2142 or so of the day before, and the all time high of a few months ago 2135 or so the day before that. The market rally seems to be fueled in large part by the promises of central banks to support the economy after Brexit, the low returns everywhere else...bonds at negative yields in some cases, etc. And while Britain and the EU tussle over the new order. Thus the market has decisively broken the stalemate it has had for the past several months. I'm wondering how long this is going to last.
So, the volatility trade is going well. From when I went all-in on Jun 28, to today, July 12 (a period of 14 days), my trade has had the following performance:
Cost Value: 18695.07. Since I have 800 shares that works out to $23.37 per share. Now the market value is: 23112.00 at the closing price of 28.89...and it went above 29 to 29.14 in extended hours today.
This means that I have an open market gain of 4416.93. Considering the 14 days that is approximately $315 per day. I expect this to taper off as the trade is left on. At only $200 per day, that would be ~6K per month. Which would be 72K per year. Now of course this isn't going to be the reality...I didn't buy into a money printing machine so to speak. It just shows the potential power of trading. I wish on the money printing machine though, LOL. And in essence, that is what trading will become to me. I mean how hard do you have to work, really? Not that hard I think. Mostly letting your capital sit in things that will appreciate and making sure everything is going in the right direction. I guess I'm just too impatient XD.
The big issues I face right now are 2-fold. 1) I need to figure out when to exit this trade...how to time it just right. 2) I need to figure out what I will do with my funds when I exit this trade. I'd rather not have everything sitting on the sidelines in cash. I need to put it to work. Now options trades are dangerous, so I cannot put everything into 1 trade. Thus if I am going to do options or what have you, I am going to have to trade multiple things or something...and they obviously cannot be correlated because if they are...then I could lose everything if the market has a bad day or week. Maybe I just need to be more vigilant about the options trades. Basically, don't let them expire? Because if I get out early I'm pretty much guaranteed not to lose all my money. This sort of conflicts with my day trading philosophy though.
So I need to work on directional trades AND market-neutral trades. Generally, the way I trade directionally with options I cannot put too much money into these I think. The risk is too high. Market neutral trades also have a very high risk in some sense. However, they take more capital to work than directional trades...these also have a higher chance of success, theoretically, it seems.
I mean honestly, like 72K/year is a lower salary than I could probably get at a good full-time job. The job would be far more stimulating, but at the same time...I am honing my skills on something which can explode. I.E. Next stop: hedge fund. Then I will become a millionaire many times over.
Also in the process, I can do some network marketing work and work on a startup since I will have time. I can also work on my truck and on my personal and social life. Really it's a bit of a hard way since I am in control and nobody is guiding me or telling me what to do, but I guess I just need to get over the mental blocks...and I need to do the research required to make sure I'm really doing a great job.
Another thing: I need to get back into social events, especially business ones. More hangouts with friends, etc. Dates... Yeah. the works! Let it rip! Oh yeah, first I need to finish my vehicle.
Over and out!
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