Compared to a brutal August, I managed to stem the flow of blood in September by reducing my market exposure and overall participation. Better late than never. Confirmation of that decision was reaffirmed during September as I watched stocks on my shopping list continue to be punished to a degree far greater than the indices reflect.
September Net P/L: -3.6%
Year to Date P/L: -27.27%
- AxoGen (AXGN) -15.8%, 6-day trade. A small position size of a highly rated stock bought at the wrong time and place. My exit should have been quicker at the fail of the previous consolidation, but I choose to hold to gauge support at the 50 DMA. I sold on that failure.
I’ve mentioned a few times in previous blog posts that a problem I’ve attributed to my losses has been due to being slow to adapt my strategy to changing market conditions, however I’ve come to think that my perspective on that has been wrong. The market always changes, so to continually change a working strategy to adapt to the market means that my strategy will always be a lagging strategy, and therefore more prone to being an underperforming strategy. Some of the best traders I learn from have long since reduced their exposure to the market, or otherwise entirely moved to the sidelines, rather than force implementing trades of their working strategies under less than ideal market conditions. They seem to trade working strategies until they don’t work, then they’re out. They’re not constantly chasing their tails. There is wisdom in the advice of not having to be actively trading in the market at all times.
Long – CRNT CVX EOG JUNO NEM SDRL UNXL
Short – None