Hi Shoppers,

As an options trader, I am sure you are keeping a trading log.

If you are not, shame on you and you better start immediately.

This is your journal to keep notes on everything about each trade strategy you deploy.

You record the actual trade, date of entry and exit with the stock price of each, your trade goal and your stop loss plan, at the very least.

I would also highly recommend a record of the implied volatility.

Where it was when you entered the trade and how it moved through the duration of your trade.

Remember of all the factors used in pricing an option, implied volatility is the wild card.

You may have a trade that you were right on; the stock traded in your direction but you still lost due to the lower move in the implied vol.

It’s also a good idea to keep notes on what you did right or wrong.

Anything that comes to mind while you are in that trade.

Did it keep you awake at night?

How happy or proud were you to take that win?

This also produces a trading record.

When you are experiencing a few losses in a row, reduce your size and maybe place fewer trades.

As you are doing better and better accumulating more wins, slowly ramp it up.

Trading can produce a lot of emotion and this is what we would like to eliminate.

By writing it down, you can see it and adjust accordingly.

Now, let’s make some money this week.

Trade Review

The Energy Select Sector (Ticker: XLE), traded $2.50 lower (like I said) before bouncing. It looks to me like it can trade $83 next.

Microsoft (Ticker: MSFT) has broken out of its bull flag. Next stop is $316.

Apple (Ticker: AAPL) is just shy of that $175 resistance level. It has a decision to make. Watch for a close above or below that and make the trade.

Thanks for Reading … See You Next Tuesday,

Licia Leslie