A wild day and the lessons

1. Market started 1% lower at open and continued to fall. SRS jumped 5 to 65, and after a while at 8:30AM, my QQQQ 30 puts was at 0.9 (bought at 0.7) and SRS over 66; AZO at 136 and AMZN at 62.8.
2. Someone in xTrends were covering shorts and I was laughing at them.
3. Then it turned. At 11AM, SRS was dropping to 64, then 63.6, I closed AZO at 137.88 (Low was 135.9) and AMZN as 64.1! Fuck!
4. Then it turned again, I canceled SRS order at 66.8. And SRS hitting over 70 at 1PM and QQQQ puts again recovered from 0.58 to 0.97! I was laughing again, promising to close them one more day tomorrow monring or if it dived 5% on the day (at the time, Dow was down 3% and Nasdaq 2.3%).
5. Then it turned again. I sold SRS at 67.1 and closed AMZN at 63 (Shorted at 63.76, Low for AMZN was 61.9). Then some news coming out the the rally continued. Dow closed down 7 after down as much as 245 and Nasdaq up 0.7%! WTF. AZO closed at 139.9 and AMZN at 64.7. ALso sold FXP at 38.2 and it closed at 37.3. SRS closed at 61.4!!!!!!
6. If I sold my puts, I will be 2.5K richer! Now Feb. put is down 30%, was up 30% just 60 minutes ago. March puts are down 30%!
7. I did my best to escape.
8. I found two things:
9. Solid entries.
10. Great exits.

Don't push

1. Shorted AMZN.
2. Bought QQQQ MArch puts.
3. A little bit extended, be careful.
4. Need to start to exit tomorrow. One at a time.

A few things learned.

1. For 2x, 3x ETFs, like SKF, SRS, FAZ,TNA,TZA,FAS. Buy on extremely oversold; better sell OTM puts when you want them.
2. For options, just use SPY or QQQQ, next month on extreme case or catch a trend.
3. Selling and buying on extreme case in the trend is great, like th AMZN and AZO shorts so far.
4. Don't chase.
5. Have a balanced portfolio.

Thanks god for sitting tight

1. SPY down 5% and qqqq down 4%.
2. SRS up 17%, my SRS is even now.
3. Think in the future, I should use next month SPY options to trade.
4. For SRS, selling puts on a extreme down day is great.
5. And FXP is good buy today.
6. If the market tanks, then I should use QQQQ market puts, it's better than Feb puts. Too risky, a bounce here and there I am finished.
7. Now focus on QQQQ puts. Forget about MOS and POT puts, can sell short of these two.
8. For SRS, think if it's up to 70s, may sell the 70 Feb calls. Need to close these July puts, when it's halved, like 6.

90 to 1 and 360 to 1 and 4500 to 2

I have been playing poker for 15 months, and I have done some amazing things.

1. Finished 1 out of 90 today.
2. Finished 1 out of 360 once.
3. Finished 2 out of 4500 once.
4. And I have finished 1 out of 45 at least 30 times.
5. I know how to play positions. I know how to take a all in bet.
6. And I found similar things in stock trading.
7. There are no need to go all in on shorts now.
8. I folded JJ today, with K9 and 33 went all in. I could win that hand.
9. And I was in last place since 30, and I finished no.1 Several times I went all in and survived. You have to be lucky.
10. And I made great decisions.
11. Now back to trade, yesterday's plan was good. I should not enter qqqq puts.
12. Short AZO and sell SRS put are OK.
13. If this morning I sold SRS at 62, at opening, that will be great!
14. And if I bought UCO at 9.1 today and I can sell at 10.3.
15. If I check all the great traders, they don't put themselves in all in situation.
16. There are no moral victory in life. AA can run into a straight or flush.
17. So I made bad decisions today, I should not try qqqq puts, yesterday's HBC and qqqq puts were wrong too.
18. After I escaped SRS and AMZN at great profit yesterday morning, I should wait another day, which is today. Then, I may enter SRS and SRS puts at the end of the day, then I will be like 2K above now.
19. So in trade, like the AMZN short (waited 3 days after earnings) and AZO, waited 3 days after people mentioned.
20. And like the SRS OTM puts, you give yourself lot of room. But I was too aggressive.
21. So let's be careful, hope to trade another day.
22. Now I cross my finger and I will be 1 out of 1 million.
23. My talent is there, I just need to do what I did great in a poker tourney. Be aggressive when others are not. And know how others behave.
24. I need to know market better.

Tomorrow

I have a feeling that we'll get a huge rally on Monday, and I am heavily short.

1. Tomorrow, I'll use any chance to exit SRS, all of them. And the puts, all of them. It may cost me 1K doing that, assume it's an up day.
2. And I'll buy 20 qqqq calls. Reason, I have 3 QID, 10 qqqq puts.
3. Then, when the plan is announced, if the market dives, sell all the puts. If the market rallies, sell all the calls.
4. Long term I am bearish, but I think I can buy SRS back at 50s if not 40s if we have a 10% rally on Monday. And I can sell the expensive puts again.
5. I may miss the opportunity.
6. That market go straight to hell, which is unlikely, the PPT will rally and support the market, then it may tank. So I should have opportunity to buy SRS at 55, 50, even 45.
7. SRS will go to 150 to 200 before it's all said and done.
8. Now I don't want to have my head handed to me.

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.