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.