Be careful

1. I added QID and TWM in FD, ST accounts. And added DUG in ET.
2. Yes I am up on all these, following xtrends leads. But be careful here. Fed's new plan is next week, it will bring some fireworks. so it's ideal to reduce the shorts and add back later.
3. I had SRS and SPY and IWM puts, I think once we reach 750, I'll take a few off the table.
4. On the other hand, it's very likely it will blow pass 750 and go to 600-650 in a hurry, should sell be then.
5. On the way back, be careful as well, selling the OTM puts in names like POT and WFR is not a bad idea.
6. Don't touch PM, GDX.
7. Idea is to profit from the down side, don't chase. I think I am done with these.
8. And I will switch to 2x ETFs like QLD and UWM when it's 600.
9. in ET, use options, better catch the real thing and use March calls or even April calls.
10. One day miss, the result will be bad, specially in names like SKF and SRS. FAZ and FAS, I will not touch them, unless it's like 40% in a day.
11. There are many places to make money; and there are many places to lose money as well, even you're right on the direction. Timing and tools are important.
12. I think I will choose 1x options; 2x names are SRS and DUG,QID.
13. Don't touch 3x.
14. Once an extreme is reached (if I know or if xTrends know, then use 1x options). If wrong, then use 2x options; then 3x options.
15. Selling OTM puts on the shares to purchased is not a bad idea. Give me two layers of protection. Like the SRS 55 puts.
16. I hope Fed won't jack up the market on Monday, if it it does, first is to exit SRS (hopefully still at profit) quickly. Sit on rest and add to them.
17. This is a fucking unbelievable time, mand yet no one knows for sure how to profit from it.
18. SH is sure thing, just too little.
19. Remember yesterday's poker, I use 1x to bring from 2.7 back to 8. And 6x to bring it back to 17. You have to take risks.
20. I need to keep a balanced act.
21. AMZN, I will buy puts once it reaches 60s.
22. But again, should hug the helpless harp seals instead of the strong one, HBC will be better puts than AMZN.

One day wrong

1. If I closed the long yesterday(market up 3%) and started short yesterday, I will be in heaven now.
2. After today's 3% drop, my SRS is still down (sold at 6.1, now need 7.6 to buy back) and SPY and IWm puts are close to be even.
3. Added SRS at 52.35 today, it closed at 55.7, so this one is good. Could buy today at 50.1, didn't put the trigger. Remember, for SRS to go down 18% in a day (yesterday's low was 48.1, and I watched for a while and didn't put the trigger. That's the time to be wild and brave. Should at least buy 100 shares; or even try the 55 puts at 4.1, now almost doubled to 8. I was thinking sell 45 puts for 4.4 and buy 55 calls yesterday, that could be a great move, can close the puts and calls.
4. What's more, even today when SRS was down hard, from 52 back to 50, I can get the calls (55) at 4.9, and now it's 8. That's how powerful the day trade is.
5. Now, let me summarize what's right for the future trades:
6. For leveraged, like SRS, should not hold for too long, take profit when you have one, specially if there is a shot up like 10%. Today should not count since it's recovering from yesterday's 18% drop.
7. For options, I should choose IYR and IYF, around 1K each, close to 1 or 0.9. For Fed. I think still got three weeks left. Don't try double ETFs.
8. Think to close 1 MOS puts in IRA and bet March puts? 1/3 now and 1/3 later?
9. Don't trust xTrends too much, and add gradually, in case I am wrong.
10. Looks like the Obama's package won't do anything, and it could be delayed by GOP. I think they need a market tanking as a cover to push it through.
11. When market hits 600, then it's time to do the 3x inverse ETFs puts, can get 100 points in one day, since market can rally 12% and the 3x financial can rally 25%, make it 75% on the down side too. Specially if it's close to the OEX, will be a dream.
12. IYR and IYF March puts maybe a better idea.
13. I don't think sol and attila are right this time either, they may get 700 in Feb, but not the 600 or 500. That will come later this year, like in Sept/Oct. I think we may hit low in Feb/March, then bounce; then crash again. Use it well.
14. SRS will be my main trade tool. IYF and IYR options.

Pure stupid

I followed xTrends and closed my TNA at 25.02. It closed at 25.7 and afterhour, it's 26.4. That's 500 shares!

1. And I sold SRS puts, 55 at 6.1. It closed at 58.6 and afterhour dropped to 55.9. Fuck. This time, my OTM puts may kick my ass!
2. And bought SPY 83 and IWM 43 puts. WTF.
3. The only good thing about the above, I have enough cash and these puts total about 2.8K. But SRS tied up 11K.
4. The correct way to do this, even in xtrends' multiple short posts, should be closing half TNA, even close them all. Should wait another day to enter shorts.
5. Now I have two chances to enter short, tomorrow AM, fade and sell quickly.
6. Or wait until this 10% move is done and over.
7. So the ideal play is, when market fades back from up 2-3% to only up 1%, close the shorts. And the market may continue to rise for another 10% this week and next.
8. Enter shorts and puts again before next week's big announcement.
9. If we rally into next week, it's likely to have a selloff after the announcement.
10. Anyway, now I think SRS may hit low 40s and SPY to 96.
11. That will be a good place to short.
12. Another thing to do, just sit tight and let them wipe my ass!
13. It has a small chance to break 850 to 870, even 890, then sell off next week after the packages, back to low 80s, even test 750 in Feb.

Reduced positions and second chance

1. I sold TNA in all except ET. Even ET was reduced from 7 to 5 positions.
2. Sold BAC calls at great profits; and closed TNA puts. Both are good.
3. Now I got second chance, and I need to use it well.
4. It's 33 in ET and 13 in ST.
5. ET, use OTM puts. If miss, that's OK. can continue to generate. AG, PM, long/short ETFs are OK.
6. TNA's puts continue my records in OTM, without a loss so far. Maybe this is my way of doing this.
7. First, 33 to 40 in ET. 13 to 15 in ST. Wait and wait some more.
8. Don't forget the main trends; don't forget the prudent way to do this (OTM).
9. And yes, I need go back to work since there is no sign that I can do this this year, even next year will be too optimistic. It's a long process, but if I can more 33 to 130, then it's a good start this year.
10. Wait for better entry price, for long and for short.
    

Trading rules

1. I go in at higher price only when there is a train coming, that is, great momentum and you can take the ride.
2. I sell at lower price only when there is a train coming, that is, great momentum and I have to get out at any price.
3. Normal case, buy low and sell high, the swing trade is the way to go.
4. Selling OTM short term puts when the underline is diving on the day is a great way to go, give me two layer of protections, and plus the time is on my side as well.
5. If my trade is not working, need to have the steel to wait for a while for better exit.
6. I lost in too many trades and now I don't trust anyone.
7. These day traders on xTrends are great, they pick up small swing and go in and then get out.
8. Now, it's possible for me to get out of these 3x ETFs in green, if there are just a few bounces along the way. I hope today or Monday.
9. The first thing to get rid of is the TNA puts, it ties me with 12K.

Think again

Atilla maybe the best trader. He made some very "stupid" moves yesterday and then today, hedging to the down side, while market actually went up from where he hedged. But I think about this, he is really smart and shrewed.

1. He sensed that maybe this is not the low, maybe we'll have another capitulation before the rally, so he kept enough cash and only have a small positions in.
2. I was really stupid by not selling my profitable C, BGU,SSO by the close of yesterday afternoon, and I was bad to even added BAC calls this morning.
3. I reversed this by selling off SOO,BGU and C, all for losses in IRA, ST and ET. To keep enough cash.
4. The key is to have enough cash to ride the market, specially if there are a 10% drop in the market. On the other hand, reduce TNA when I have the chance. Another 10% means 30% in my TNA, which is big.
5. These traders are not on xTrends to show their stupidity, they are really good.
6. Still like the sold of TNA puts, if I was careful last Friday, I should only do that and keep all the 27K. Instead, now I added BAC calls, 2 TNA. Bad, really bad.
7. And I could just waited yesterday and sell FAS,BGU and SSO for good profit in the afternoon, but I sold early due to Atilla's alert. Another bad move.
8. I bought WFR and sold covered calls on these, that's good. Think as solid as POT purchases and covered calls should yield good results for me.
9. Now, let's wait and wait, and don't jump in with both feet, until it's down under 700, then I will bet big.
   

Let think this hard

Two major cases here:

1. A rally back to 1100, in a few months. There will be ups and downs. If that's the case, C will outperform FAS, the lessons I learned from 2x and 3x, they drop too much. Like today, SRS drops 19% to 58!
2. Support above, 1929 pattern; Obama's honeymoon and new policies;most financial bad news are out.
3. A rally back to 920, then test new low. Atilla is not on this anymore. He is on the first one. Supports this one, Great Britain is in major danger of nationalizing its banks, etc.

Regardless the above 1 or 2, there is only one major thing to remember:

1. Take profit when it's too good to be true.
2. Sell OTM puts on a swing against you is always working. I have not lose a single trades so far, even when it's against me, like the SRS, I got assigned and came out alive.
3. I will use OTM puts to add safty layer; and I will exit 3x and C quickly, don't be greedy.
4. Follow Atilla and TK, even iCoin, these people are smart and shrewed, they know how to escape.
5. Cut my trades.

Another thing in IB and IRA:

1. Don't go all in on the risky of all choices, that will kill me fast.
2. I lost my IB account in CNX, MF; then recently in SPY options(which was winning, but I cut it lose to focus on Etrade), then this SSO wonder, I almost have to talk to XM to get new funds. Fuck.
3. Now, let's do this slowly and one dollar at a time. Like I only have 2 dollars in my poker account, if I am careful enough, I can come back.
4. On the other hand, my peak was $260 in my poker account, and I want to hit big, and now back to $19 dollar.
5. So, do it slow, do it right. This is the right way to trade and make money.
6. My OEX idea is always on, and I will try it again and again, one day it hits, I will retire.
7. And Warren Buffet's idea of selling puts are a great way to acquire shares.

Made mistakes, but that's OK if I am right

Follow Atilla's call and closed FAS,BGU and SSO, for about 1500 losses. This was a mistake! Should I keep them, and just closed SRS put, I will be $1200 richer!

1. Actually, sold FAS at 8.04, then it did hit low of 7.6. Didn't buy back, now it's 10! My losses is $75. That's a miss of $1000.
2. Did buy C at 3.18, now it's 3.68. That's great. Make up some of the FAS losses.
3. Closed SRS puts, otherwise, another 100 loss.
4. Add 200 TNA, this makes up the close of BGU.
5. Sold 6 TNA 20 puts for 2.4. This may very well earned already.
6. ST and FD are in SSO and TNA and BGU. My IRA are in SSO and TNA. So I am good if the market can continue to run.
7. Actually, it's good in the future, just sell OTM puts on the stuff I want to buy, and then keep buy the underline stocks, options are too risky.
8. Another thing, if TNA goes up too much, either sell or sell the covered calls.
9. If what Atilla said is true, it will double when SPY hits 1100, and I will earn my first real money.
   
10. Yesterday I bought TNA calls for 1.7, not Friday, today it's 0.8. Just two days passing. If the rally continues, I'll get it back. Before that, don't trade this. And I could very well lose the money if it just hit 34 before Feb.
    
11. The sequence should be:
12. 1x.
13. 2x
14. 3x
15. options on 1x
16. options on 2x.
17. etc.
18. Keep enough cash in Etrade. 17K is about right.

Am I finished?

I could not believe I made another mistakes on Friday, by closing all the shorts, DXD,TWM and HBC puts. And I went long.

1. TNA and BGU. That's 3x.
2. SSO,2x.
3. TNA calls, that's options on 3x.
4. If the market tanks tomorrow, I am dead.
5. What's more, I went to huddle room 40 minutes before close, and I calmly bought SSO calls at .50, it went as low as .28, and I could not sell at .35. The IB borrowed me money and bought 1000 shares for me.
6. Wow, now my account will likely be liqudated first thig tomorrow morning by IB, I may even owe them money, or only get a few dollars left. Only when market open higher, I got a chance to trade in IB again.
7. Shit!
8. Fuck!

Switched from short to long

1. Sold DXD for a profit. Sold MZZ for a proft. Sold TWM for a loss.
2. Sold HBC puts for a great profit.
3. Bought SSO,BGU and TNA as my long play for Obama rally. Market was down 10% since Jan.2nd, and even with Friday's bounce, still down about 8%. These are intended for a short term trade.
4. TA supports the bounce; the market continue to hold up with banks' horrible news, tells me market wants to go up.
5. And Obama's inauguration provides the execuse for both bears and bulls to push this market up, the feel good effects.
6. It's a new start for the country and the market.
7. I hope there will be no selling the news on Obama becoming president.

Sold SRS

Market took a beating early and then closed up.

1. Sold SRS for 11 points. That's very lucky, I sold above 74 and it closed at 63.
2. Also covered Jan 75 put for 8.5 point when SRS is around 72.
3. Still sold SRS Feb. 45 put. It's still ahead so I will keep it.
4. Also sold a small FAZ position for 11 points, won't touch 3x ETFs again.
   

The market is crazy to say the least. I need to be careful, not betting too heavily in one direction. It's good to make money, it's great to not lose money! I am still in recovering mode, from the pain and losses I suffered in 08.

Still think we'll have a new low this year, still not sure if we rally first, or we go back down again.

Bought HBC March puts

After seeing the news of massive March puts were bought in HBC, I added my own puts yesterday. Today, market is down 3% and HBC 8%. Tomorrow is a key day:

1. How will market react to JPM earning, Steve Jobs's medical leave?
2. Other economic data?
3. We know all these will be bad, but how market react to these is the key.
4. My plan is following:
5. If market drops hard, I may need to reduce my shorts; and when it rallies, add these shorts back on.
6. If market rallies from the get go, don't need to do anything, it will reverse to down soon.
7. And I think the Obama rally ended on Jan.2nd.
8. From now on, every rally should be sold. You can only be wrong for getting too early in short ETFs, i.e., you'll get too high an entry price. But eventually, you'll get it back when market touches new lows.
9. I think market will make a few new lows this year.

First trade of the year

Since I was burned lot of times last year, with longs and shorts, I decided to go slow this year.

1. Only one trade this year so far, sold SRS Feb 45 put at 4.7 yesterday.
   
2. Reason is I found the information that there was a SRS Jan 65 call block trade of 5000 yesterday. Today SRS is up almost 9%.
3. I have SRS (sold Dec 70 put and got assigned), and another Jan 75 put will likely be assigned, now SRS is 59. The cost of that SRS is not too bad, I sold the put for $10.5, plus the $4.5 I'll receive (SRS's distribution), make the cost of SRS at 60.
4. Again, I will likely to use selling of OTM put as ways to reduce risk in the future.
5. For the week, S&P is down about 5%.
   
6. Amazingly, I did well for the first week of the year, DXD, TWM, SRS, MZZ are all up due to a down week. My long holdings POT and MOS are up, MEE flat.
   
7. I'll continue to play short ETFs for short term, and use POT and MOS as a balance to play the upside, if there is one.
   

Be patient

1. I was too early to sell SRS put. Got assigned. But I sold SRS 70 put when it's 85 in Dec. It's far better than buy SRS at 85.
2. I was too early to get into DXD.
3. Now, I think the market is determined to push higher into Obama's inauguration.
4. Then, we'll have a sell off.
5. So it's wise to be patient to add at better price, better use OTM puts.
6. It's great I bought POT and MEE, and sold covered calls against these, I also sold POT and MOS OTM puts, all are at great profits. These balanced my error in entering short ETFs too early.