Doing homework

I have always liked school, and never really minded the homework that came a lot with it. Now I find myself doing a thorough review of my 2010 Trading Journal and it seems so much like homework this year. I have gone much deeper in the review, and feel that the additional review time is worthwhile.

There are many things that I learn from the process, but this year I find that many of the things learned can be summed up in to one key element: preparation, and the improvement of that, produced much greater results from trade performance.

Repeat:  preparation, and the improvement of that, produced much greater results from trade performance.

A few surprises in the review:
1) An increase in option trades, especially selling put spreads
2) An increase in performance from the more difficult trades like Knife Catch & Gap Fill trades.
3) An increase in short positions taken when compared to the prior 5 years. This may have to do with the market trend changes throughout the year.
4) The unexpected benefit from the use of StockTwits. What a pleasant surprise.

Now that I am wrapping up the 2010 review, several things are apparent to me for 2011.

• It is likely that many stocks are topping, and thus there may be an enhanced number of solid short opportunities in the coming months.
• I also see less put spread sale opportunities going into the new year, but certainly there will be some.
• Finally, I expect to incorporate more weekly option trades.

 Let's get ready to rumble.