Over the last two weeks, volatility has returned to the market after spending a few months sleepwalking through the summer. That's not to say that from an individual stock perspective that it's been a drag over the last few months. It's actually been a relatively strong period in certain sectors. It's been a good reminder to stay focused on your setups and worry less about the indexes.
When focus is placed on trade setups, a higher level of consistency is maintained because you're not distracted by headlines and irrelevant opinions being dispersed around the internet. All that matters to your trading style is whether or not you are being consistent from start to finish. This includes setup type, position sizing, risk level, and exit strategy. Beyond this, everything else is just noise and an opportunity to not follow what you've set out to do.
Consistency doesn't exactly equate to being successful in the trading world. You can be consistently bad with risk management, trading setups, or even your ability to hold a position through the entire trade process. The key is look at what holds performance back and fix those areas. For many the first area to look at is their attitude towards money. Many times there can be a psychological issue with making money or losing money. We all value money and tie it directly to being able to buy something or to hours necessary to earn what we just made or lost in our accounts.
It's important to figure out what you are consistently doing right and wrong. When I first started trading, it was position sizing and the ability to hold through the trade that caused most of my errors. It took me a few years, but I was eventually able to find what worked for me. Fix your faulty trading areas and it's likely you'll experience an uptick in performance. You'll also be practicing successful consistency.
+5.75% MTD | +22.10 YTD
The last time an update was done, I mentioned the leading group of stocks for the portfolio which were UBNT, LITE, FN, OCLR, HDSN, and NPTN. Not much has changed over the last few weeks. This group remains the core reason the portfolio continues to move up in value. There have been a few that didn't work such as CBPX, but as a whole the positions continue to hold their trends. Below are few examples of the stair stepping action that's been occurring.
Another positive so far this month has been the DTSI trade. DTSI was added to the portfolio on 8/12/16 at 33 risking .5% which allowed 5.46% of the portfolio to be allocated towards the trade. Yesterday, DTSI traded above 42 due to a takeover bid. The total effect on the portfolio's bottom line was 1.52%. Up until a few days ago DTSI was sitting near break even and wasn't much of a factor.