Weekly Report Card- Lithium Providing a Juicy Opportunity

Bouncing back from a outsized loss

A new rule is to stop blowing up at the start of the month.

On Monday 2nd September, I took an outsize loss in a short Cettire position (CTT). There was undoubtedly some bad luck at play as I walked into an outlier event with some aggressive insider buying that verged on market misconduct.

However, I failed to do the one thing that mattered- cut when wrong. I froze. The stock blew through my stop and I didn’t act until too late.

A small position became a very big loss.

I never mind losing in strong hands. This trade had multiple variables that I loved. However, having conviction is one thing but refusing to accept you are wrong is another. An apt saying:

strong conviction, lightly held.

I forgot to follow the basics here.

All weekend I sat on this. It ruined my ability to be present with my kids. However, I formed a plan and wrote it all out:

• Reduce overnight exposure to reduce anxiety

• Increase self-awareness with a full focus on just trading well

• Increase trade selection to focus on the most meaningful. Best playbooks only

Fortunately, the market served up one of those meaningful opportunities in the Lithium market. I made back all my CTT loss and some.

In this weekly recap below, I detail the trades, what I did well, lessons, and areas for improvement¹.

The Trade Opportunities

The week can be broadly broken down into 3 main trades:

1. Lithium gap down playbook on Monday 9/9/24;

2. Lithium breaking news and morning drive on Wednesday 11/9/24;

3. Lithium overnight momentum.