Hi Michael This being week before Xmas I didn´t expect any trade at all this week. But managed to catch a trend and cleared a net of $148 which was a return of 10% of capital invested in the trade. It was very painful slow trading and watching small increments of 10 cent moves for two days. The $5000 account is now up 12% I believe that is it for XMAS. I´ll take tomorrow off and do some present shopping.
Ray, hope you have a great holiday season and all the best for 2011 to be the best yet! Look forward to the ongoing options discussions, and perhaps get to the real cash stage! Off to Hawaii for 10 days tomorrow. Aloha, Michael
Michael Hawaii? I guess that makes sense it being closer to you. Enjoy the sun mon, best Xmas to you and family.
Michael Well December for my new trading returned 12% So far, the first day of January I´m up 7% on account ( ROI net profit) 2011 This is straight option buying, selling. ____________________ CREDIT SPREAD TRADING EXPERIENCE ( 8 MONTHS ) 2010 Credit Spread trading turned out for me to be disastrous. In eight months, I made about $13,000 in four months each time, using roughly a $25,000 risk capital. Then I got hit and had to exit and ended up with big loss. $13,000 wins against $25,000 losses each time. It was essentially 8 months wasted. It there is a trick to it, BRAD seems to work it okay? From my understanding he rolls over the losing hits, or near hits into the next month. His worst year was when he got hit four months and had to rollover to next month. If he has good Bull years, it is easier and he has no hits. His annual return was anywhere from 33% to 92% per annum. Most of those losing rollovers he tries to get out with zero gain-loss situations. This is not always possible, but he manages to work it out okay by rolling over. Then the ones he cannot break even on for losing month trades, he must deduct from his annual return. I see one year he actually had four losing months in a row, for zero returns. His wins and rollover losses breaking even. I may look at it again sometime. I certainly liked the weekly credit spread, which never failed me at all. But right now I have two months thereabouts invested in building my new straight option buying system. The risk reward ratio is more attractive! I typically can get a 30% return against the risk capital in individual trades. Which beats the heck out of credit spreads that only return 3% to 5% normally, return to individual trade risk capital. The trick on this so far I´ve decided is to follow Jesse Livermore´s advice and sit on my hands and do nothing. You only need two winning trades per month and sit the rest of the month reading a book, playing the guitar, or dozing in the hammock, while waiting for a trade setup. I´m not sure yet, but figure two to five trades a month is possible. My goal is 10% a month and hopefully no losses. Happy New Year and I´m glad to be back in the trading saddle after the Xmas and New Years holidays. I was getting bored reading books and the television does not interest me much.
Falconview and Stanford: I am stopping by just to say hello, and to offer my best wishes for a happy, healthy and prosperous new year. Best regards, TJ
Nice work if you can do it. But what system is there that will give you the return that you say you expect, without larger losses to eat up your account? It looks to me that you are back to the ole' gambling guess on market direction. Did I miss something here? Walt B
What series caused you the big losses. I'm very curious as I am currently trading Index Options Credit Spreads for a living. Your assistance in spotting week points in my strategy would be appreciated. My journal, if you want to compare notes: HowardCohodas Index Options Credit Spread Trading Journal
Micheal This guys ( Howard ) forum will interest you, as it is what you are doing. howardCohodas Index Options credit Spread Trading Journal ____________________________ I´m not sure a comment earlier was directed to me or somebody else? If you have one or two option type setups, you know will give you a return, you can make money each time. By not trading the rest of the time, ( this is my theory ) What I figure if you spread yourself in different indexes given a swollen bank account and go to trading in size. Size 20% of capital available in your account and only do those patterns you know that work, you should come out ahead at the end of the year. There are two problems with this approach. GREED and boredom! As Linda Rashke emphasizes it is PATIENCE that allows you to win, or profit. I´ve been sitting a week with no trade and I´m going zonkers out of my skull. So started experimenting with something else while waiting. A good way to introduce losses and eat up your guaranteed profits. Therein lies the cockroach in the supper. I probably should trade one account for profit and a seperate account for experimenting. I´ll have to look at opening another TOS account. _______________________________
I think they should move OEX options to the electronic platform like SPY's, QQQQ's, GLD's options to get better market participation or else traders will abandon this great trading issue. open outcry model is out of date