Week 4: Day 2

So the big down day has finally come. The Spanish recession weighted heavily on the market and I reached my 40% stop loss figure. So I had to liquidate some of my top line protection. Ended the day at $5,144.27. Yes, that is a 12.5% loss in a day. That is this strategy, I am afraid. Huge losses and major gains are a part of the game. Good thing I can sit on them now, a similar loss a few years ago, would have ruined my day - not today :)

Lesson learnt: If there is an impending doom and gloom scenario, decrease exposure to the market. Lock in some gains.