September has historically been a negative period in the markets and this year was not an exception. Like the major indexes I was also down. -4.13% so it was not an especially a fun month.
I got off to a decent start then fought through a short drawdown to go positive and then got hit by extended losses.
I eventually caught the Russell but finished quite a bit behind the the Nasdaq and the S&P.Through out the month we were constantly hearing of divergences. The indexes which are dominated by just a few stocks did well but the majority of stocks kept selling off. It was a down month overall for the markets.
Assessment
I had a few big winners but the problem was that my average loss size increased. I became a little loose in my discipline. The EJ trade I convinced myself I was right due to the fundamental valuations turned out to be a disaster. Despite cutting the size, the trade wound up costing me 3R. My worst of the year and a clear violation of my risk parameters.
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