Did I trade well today?
What did I learn about myself?
What did I learn about the markets?
Today was a down day and I made an egregious mistakes by selling part of a large position because I was nervous. I did not sell all of it. I was overweighted so it was a relief to get rid of some it. The stock rebounded and I locked in a big loss at the bottom. I then regained my composure. I bought several downtrending names because I felt they were too cheap. At the end of the day, a big loss ended up being a smaller loss. The stocks I follow were out of favor. Meanwhile, all the indexes were up, adding a sense of being in the wrong names.
I learned that I still need to work on my emotions on down days. This is a marathon, not a sprint. My portfolio is up -- outperforming all major indexes for the year -- despite two down days in a row. I need to accept these consolidation days. I'd rather be up 6 days in a row huge then down 2 then small gains 8 days in a row for a smaller overall gain. I anticipated the drawdown anyway... I just was extremely uncomfortable anyway. What's the point? My targets on many names are far away. None the stock had specifically negative news. Today was a normal day. I was reminded of the importance of focusing on monthly performance and not getting caught up in the day to day movement. Otherwise, I am just trading like a noob.
I learned the markets are very much focused on daily performance... the markets are quick to overreact to the downside as fear is a strong motivator. I learned value names rarely perform with the indexes -- they march to their own drummer.