New way

1. First, identify the main trend.
2. Second, identify the short term overbought and oversold conditions. Let's say it's in the middle.
3. Third, use XT,SOH,1Option, EW to gather directions.
4. When a new trend starts, join early, use 2x ETFs or options. Once it moves to oversold/overbought conditions, reduce the exposure and take profit.
5. If the trends reverse, then exit quickly.
6. When the market hits an extreme end, time to use 2xETFs or options for a counter rally. Start with 1/8. When it go against you, add another 1/4 after, say another 5-10%. Then another 1/2 after 5-10%.
7. When market goes with you, if you start early, double the size 1/8. Take the ride and then exit.
8. This always works and works better in volatile market like right now.
9. I can use SRS only and make a killing.
10. Have to have a feel on it. When extreme comes, be brave.
11. SRS was in 49s once, in Jan.5th, it bounced to 50? That's the time to be aggressive, even I had 2 positions already. And I exited at 74!
12. Then it went from 70 back to 48 just 3 days ago, I went in early by selling two SRS puts at 55; and next day enter one at 52. It's a solid play. But the correct one should be: At 48, enter 1 position. At 52, enter another one, plus selling two puts. This way, I will do far better. At 59, even with Atilla's call for all in, I should do it slowly.
13. Now, the QID, is bad. I will hold for the ultimate 600 call sometime in 2009.
14. Rest, I will stop trading. I will enter under two cases:
15. 1. The fast dropping starts, catch the momentum, to the down side.
16. 2. At the bottom, like below 700, add 1/8, 2x. If continue to drop, add 1/4, options(2months); below 600, all in, options (2 months, using 2 x ETFs).
17. Can use the inverse ETFs puts, like SKF and SRS, on the way up.
18. Always keep at least 15K in ET. So now I have 20K left, already used 5.7K.
19. For parents, when it's below 700, time to enter the POT/AAPL/GOOG puts. Be aggressive, that is, only 20-30% down. Don't need 50% down. Jan 2010.
20. I think for my POT, I chose 25 and 15 on MOS. If I choose 35 and 20, I can close them when POT in 80s and MOS in 40. Will be better profit if you're aggressive selling the puts on the extreme cases.
21. Rest of the money, should be used to purchase the 2x ETFs calls or -2xETF puts. These can make a fortune. The problem is, you still have enough cash and you still have a balanced portfolio.