THE SERENDIPITY OPTION TRADE METHOD .

*** I´m the guy on the left, holding a bottle of addictive MARMITE, which is darned hard to get around here. You want to mail me a bottle, you would be a friend for life. ( grin )


August, 2011

Been learning different options strategies for about 2 years. Haven´t got anywhere yet. Except I moved from paper trading to CASH TRADING and smaller bets. I´m going to record this NEW method.
I started trading paper money, about 18 months ago. Did Credit Spreads for six months and tripled my theoretical cash. Then a market reaction occurred and with the volatility, that wiped out the winnings. Thank heavens they were theoretical paper money trades. I moved to GAP trading and that worked very well also for 4 or 5 months in paper trading. When I moved to real cash trading, I made the mistake of making a MARKET ORDER, they ripped me off immediately. The ASK was $7.50, I prejudged the market GAP jump at $10.50, which it did, but the suckers held my market order for 45 minutes and finally filled it at $14.50, the highest the price saw for a couple of weeks. Since I was betting almost the lot in my account, using COMPOUNDING, this set me back -54% in money used for the trade. I started with $10,000 USA. I have also experimented with other types of SPREADS. It´s taken almost two years, to learn that my belief is that; SPREADS are too expensive, too slow and the risk/reward ratio is lousy to make money. The vaunted extra security I feel of Spread Trading is a MYTH. I have sold OPTIONS and BOUGHT THEM. I´ve tried a lot of stuff. This go around is CASH REAL TRADING and I´m prepared to let my losses get to $5000, before quitting. This method is direct buying and selling only. Your timing has to be right generally and you need NERVES OF STEEL. Other than that, 2 months developing signals to trade by, I´m back in the game again, with a starting balance of $7187. Of which if I dip below $5000, I will QUIT.

My sole immediate goal, is to try and build back my real time cash account, to the original starting price or $10,000, by XMAS, then we will see about adding more money, or perhaps quitting earlier if I fail.

This is my own idea. Not sure what I am doing, but so far it is working.

THE SERENDIPITY OPTION TRADE METHOD

The idea I had about the one trade method, was just to find a repeatable winning trade, that can be done OVER and OVER again. So here we go, I think I have one. Let´s see IF it will work over the next few months. The plan is to start small and increase BET SIZE. I´m trading the QQQ index for start, which reflects stocks on the NASDAQ INDEX. The reason, the bets can be small. Profits are small and the losses will be small. Usually a bet can be made with between $100 and $400 per contract.
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I played with the idea of calling this BLOG, "how to trade options from a boat in the Caribbean." **** YOU can live on a boat in the Caribbean and trade options. You have to be in range of a wireless signal for internet though. I´ve done it and still do it occasionally.

Or perhaps "How to trade options from a house in the foothills of the Mayan Empire mountains."

Finally decided Trading Options for Dummies might be more appropriate. Then I found the internet was loaded with BLOGS with that title, so changed it to THE SERENDIPITY OPTION TRADE METHOD.
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Late August, 2011, start on this SERENDIPITY TRADING METHOD, gaining confidence in the method here, so you will start to see me raise BET SIZE !

SEREENDIPITY TRADE METHOD - OR- THE SERENDIPITY OPTION TRADING METHOD

START: Mid August, 2011, trading in cash. Balance: about $7187

1) 2 Sept PUTS -50 – @ Buy $1.85, Sell $2.04 ( + 7%) + $26 New balance: $7213.77
2) 2 Oct CALLS -49- @ Buy $4.05, Sell $4.42 ( +7% ) +$62 New balance: $7275.95
3) 2 Oct PUTS -52 - @ Buy $2.85, Sell $3.10 ( +6%) +$38 New balance: $7314.13
4) 2 Oct CALLS -52- @ Buy $4.42, Sell ($4.22) ( -5%) -$52 New balance: $7262.13
5) 4 Oct Puts -59- @ Buy $4.74, Sell $4.99 ( + 4% ) +$76 New balance: $7338.12

September, 2011
6) 3 Oct PUTS - 59 - Buy $5.94, Sell $6.24 ( +4% ) +$72 New balance: $7410.95
7) 6 NOV CALLS -48- Buy $4.04, Sell $7.36 (+ 6% ) + -$156 New Balance: $ 7583.57
8) 2 NOV CALLS -48 - -Buy $7.38, sell $7.58 (+ 1.8% ) +$28 New Balance: $7595.64
9) Sheeet! Made a writing mistake on the order form. Put in a limit order to sell, intending to raise the price a dollar for the day. Insteady of $7.58 I sold at $6.58 and it cost me about (-$210), Had to re-establish my position again. ( No. 10 )
9) 10 NOV PUTS -60 - Buy $6.73, sold $6.58 (- 3% ) ( - $210 ) New B0A16) 2 DEC 60 PUTS QQQ - buy $7.86, sold $7.86 for loss of (- $192) New Balance: $8014.46
(Moving back to paper trading, I´ve not been able to adjust to the rythm of multiple days of trading)

Seem to be missing some trade data here? Wonder where it went?
10) Buy 10 Nov Puts QQQ buy $6.64, sold $765, +$950 Balance: $8365.56
11) Buy 2 Nov 65 CALLS QQQ buy$6.48, sold &6.96 +$72 Balance: $8449.75
12) Buy 4 Nov PUTS 64 QQQ buy $9.46, sold $10.87 Balance: $8990.01
13) Buy 2 Nov Puts 64 QQQ buy $9.25, sold ($6.10) Balance: missing
14) Buy 2 Nov Puts 64 QQQ buy $9.72, sold $10.62 Balance: $9144.01

Due to the EXCHANGE forbidding me to DAY TRADE, I started a LONG LOSING STREAK HERE AND GAVE ALMOST ALL MY WINNINGS BACK, WHILE I TRIED TO FIGURE OUT ANOTHER TRADING METHOD, DOING AS THEY WANTED.

15) Buy 2 Nov CALLS QQQ 47 buy $7.54 sold ($6.10) Balance: $8284.42
16) Buy 2 Dec 60 Puts QQQ buy $8.76 sold ($7.86) Balance: $8014.46

- Okay! Hope I have it all back roughly speaking from paper copy.-

OCTOBER TRADING
(STEADY LOSING STREAK HERE?)
17) Buy 1 DEC 65 PUT QQQ buy $8.54, sold ($7.38) Balance:$7746.54
18) Buy 1 Dec 65 PUT QQQ buy $8.12, sold ($7.28), Balance: $7634.61
19) Buy 1 DEC 51 CALL QQQ buy $7.85, sold ($7.06), Balance: $7550
20) Buy 1 Dec 64 PUT QQQ buy $7.60, sold ($7.07), Balance: $7512
21) Buy 1 Dec 64 PUT QQQ buy $7.48, sold ($6.60), Balance: $7418.70
22) Buy 1 Dec 63 PUT QQQ buy $4.84, sold ($4.68), Balance; $7386

Started to win again here!

23) Buy 1 Dec 62 PUT QQQ buy $4.12, sold + $4.30, Balance: $7404.30

NOVEMBER TRADES
24) Buy 1 Jan 54 PUT QQQ buy $4.55, sold +$4.95, Balance: $7438.91
25) Buy 1 Jan 51 CALL QQQ buy $6.95, sold + $7.53, ( sold 25 and 26 together )
26) Buy 1 Jan 51 CALL QQQ buy $7.13, sold + $7.53, Balance: $7525.01
27) Buy 1 Jan 51 Call QQQ buy 7.40, sold + $7.95, Balance: $7574.05
(Need to increase the numbers of contracts?)
28) Buy 3 Jan 65 PUTS QQQ buy $7.62, sold + $8.36, Balance: $7778.22
29) Buy 5 Jan 49 CALLS QQQ buy $7.77 sold (- $7.25 ) Balance: $7488.52
30) Buy 2 Jan 54 PUTS QQQ 54 buy $2.68 sold $2.77 Balance: $7494.63
31) Buy 1 STRADDLE,QQQ 53 CALL/PUT @ $5.21 sold the PUT, at loss, at $1.70,
held the CALL to next day, sold CALL at $3.90, for gain on straddle
of +$31 Balance: $7525.75
32) Buy 4 QQQ Feb 52 CALLS @$5.38, sold @ $6.00 Balance: $7750.03

DECEMBER, 2011

33) Buy 2 QQQ Feb.56 Straddle, call @ $4.92 spread order 339760294
Cancelled UR OUT order no: 339790294
34) Buy 2 QQQ Feb.56 STRADDLE, CALL/PUT @ $5.63 SPREAD, order no: 339790807
Cancelled UR OUT,
35) Buy 2 QQQ Feb 56 STRADDLE, Call/Put "5.64, order 339790819 CANCELLED -UR OUT-
36) Buy 2 QQQ Feb. 56 CALL/PUT, STRADDLE @ $5.66 SPREAD, order 339798889 -FILLED-
Holding ( call at $3.09, put at $2.56 ) Finally got it FILLED before the CLOSE.
37) Sell 2 Feb PUTS @2.45, didn´t get filled so cancelled it UR OUT 339989617
38) Sell 2 Feb 56 CALLS @ $3.47 FILLED ( 1/2 of straddle ) Gained +$64
39) Sell 2 Feb 56 PUTS @ $2.33 FILLED/Loss, but NET GAIN of $4 on straddle=$7754.27
40) Buy 2 Feb 58 CALLS @ $2.09 Sold @ loss ( -$6 ) Balance: $ 7752.32
41) Buy 3 FEB 61 PUTS @ $5.06, Sold $5.45 Balance: $ 7851.51
42) Buy 3 Feb QQQ 60 PUTS @ $4.65, sold $4.80 Balance: $ 7878.70
43) Buy 5 Feb QQQ 53 CALls @4.381 CANCELLED UR OUT 343107269 ENTER AND 343107284 EXIT. MADE A MISTAKE ON THE STRIKE NUMBER HAD TO RE-ENTER THE ORDER.
44) Buy 5 Feb QQQ CALLS 54 @3.87 Sold $3.09 ( loss ) Balance: $ 7334.66
45) Buy 3 feb QQQ PUTS 53 @1.94 Sold $$1.58 ( loss ) Balance: $ $7208

******There is an error here. Not sure what it is, but it is my last recorded trade. I´m assuming this was a paper trade and not involving real money perhaps. Either way, my broker says I have a BALANCE at the end of 2011 of $7333.32 On my paper record, I tend to round off the numbers, so I expect a difference in the balance slightly, from my broker. I have lost -26% of my trading account in the six months I was learning in 2011.
I will start recording the new trades for the NEW YEAR at the bottom of this running account in this TRADING BLOG.




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**From mid August ( 16 weeks, still ahead + 0% Dec./11 )

**In total, my $10,000 acount is down, from June, when I started in CASH DOING GAP TRADING - $2792, or (- 28%)
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******Revised methodology to try again.

October trades DISCUSSION

***Got two trades carried over into October. Probably take a loss on them early in the week. Number 13 and 15. Lost -$942 on the two of trades. No. 13 and 15 Got into trouble into switching from hourly trading to daily trading system. Finally settled on an END OF DAY system. Switching now, Oct 3rd, 2011.
Seem to be missing some trade data here? Wonder where it went?

******Revised methodology to try again.
17) 1 DEC 62 PUT QQQ - buy $8.52, sell 7.12 (-$146 ) New Balance: $7868.50
--- SHEESH! Have to refigure a new strategy, this one went wrong and I had such high hopes for it.
18) 1 DEC 65 PUT QQQ buy $8.54, sold $7.38 ( -$122 ) New Balance: $7746.54__ I´m really having trouble developing a method to do multiple days. Losing streak goes on again. Switch to Paper Trading Monday.



HISTORICAL MEMOS
Sept 7th. I decided to increase my RISK on BET number 7. The reason, if I am going to make back my $10,000 account by Xmas, I have to increase the bet size. I only have 13 weeks to do it in. So what I have done in BET No.7, is calculate the compounding based on the money above my $5000 safety, which was $2400 and calculate the bet for that amount of money, more or less fully invested. I´m going to have some hard times trying to explain to my wife if I lose any of that $5000. Anyway, that turned out to be 3 contracts. This safely allowed me to stay above my RISK level of the remaining $5000 in the account. But since the pressure of trying to compound and win enough in 13 weeks to reach $10,000 dictates I accept more RISK. I decided I was going to double the size of the bet, from 3 contracts bought to 6 contracts bought, which would dip into the RESERVE $5000 cash. I did it, and the result was a better return of $156.
I´m still struggling with the entry and exits of the trade. The entry I more or less have figured out and it is a mechanical entry. If such and such happens, then take a bet. I try to shave off a few cents on the BID to buy, ( using a limit order ) but other than that it is mechanical. The EXIT from the trade has been bugging me, and the best I can do so far, has been guess estimating a price to sell at and enter a LIMIT order to sell and then sleep until it gets hit. This however is losing money left on the table. I´m measuring market sentiment here and buying pressure. In the case of BET No. 7 the bet worked, but left a steady buying pressure, indicating there was more to go. So I placed another BET. Dropped my RISK considerably as I am not sure what I´m doing. The next bet ( No. 8 in the same week, was now only 2 contracts. I´m now testing some indicators, to see if I can let this bet run, and I get a reliable EXIT signal to work from. We shall see where we go from here.
WHOOOPS! Mistake again. I didn´t let it run. My indicators started to say the trend would be over soon, so I guess estimated a price target and got it. For BET No. 8. This has turned out to be a learning experience, as subsequent price movement indicated continued upside after I got filled. Anyway, I´m through with this trend and will just watch to see what the price will finally reach, if I had followed my EXIT rule that I am trying to establish. I really have to work on my EXIT move. Got places to go, errands to do and all that.
By BET no. 10 I am getting better at it and raising the bet size according to my discretionary cash available. About 50% of my account I have decided. This should really be just ONE TRADE for the week. But in the learning process, I am experimenting and trying not to take chances and leave money that is already earned. This has resulted in more than one trade, as I try different approaches. Bet 10 REVIEW: I bet practically the whole account in Bet no. 10 and it worked well. I would only need 3 such bets, or 3 weeks to get back to my starting capital of $10,000. I´ve been thinking long and hard about it. What I´ve decided to do, is just bet half of the account. Too risky otherwise.
WHOOPS! The exchange pulled the Day Trader rule on me. I´ve been trying to keep my trades within 3 trades a week. Actually, since I´m a beginner, I´m trying to make a trade ONCE a week. However last week, I made a mistake on the 3 rd trade and put in the wrong dollar amount and took a -$210 loss, but the trend was running, so had to re-enter or lose the week. It did finally make money and I covered my loss. Unfortunately it put me into the FORBIDDEN ZONE of four trades in one week. So I got a notice this morning that I´m a PATTERN TRADER and must either raise my account from $10,000 to $25,000, or am allowed to trade ONLY overnight trades. My homemade SERENDIPITY trade that I´m working on, runs about 7 to 12 hours. Sometimes it can run up to 3 days. I have no way of knowing beforehand. The wife will not allow me to raise my account size. We have plenty of money! So the only way I can see to deal with this, is take a trade in the last four hours of the day, so it is going to be an OVERNIGHT TRADE. They say I can make a trade, but it must be overnight. I have no way of guessing that before hand. I´m working from graphic signals and price reading movement. This is going to lose me a lot of time. I think whenever I make it back to $10,000, I shall just quit. Can´t fight the EXCHANGE and my wife too. Too much mental aggravation! Takes all the fun out of it.
*** Trade No. 11 was the OVERNIGHT trade ordered for my account by the EXCHANGE. I liked exiting if I had a profit, before the CLOSE the same day, as a profit is in the bank that way, but now I´m forced to revamp and tweek my method, so I can trade overnight. This morning I figured for a little GAP and expect it to close again and reverse during the day. So I precalculated the amount I thought it would go on the opening gap, and set a LIMIT ORDER for that amount to sell and got FILLED. So alls w3Aleft; margin:0 10px 10px 0;cursor:pointer; cursor:hand;width: 175px; height: 150px;" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjbl36obalKis13cdjkZCTFgmVgGarhT_jkouI90UuRSa4VzmOk77NND7ICPO1GIW5p7Fefg4NhGECKrn2GX5P-LH6e2a5bMQ9K1PTuveGxJ_d8SaBfY1Sa0crS8PjRr_YgKJk0BtlzUx2K/s320/Bob+poker+player+3.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5649956757297164082" /> *** My neighbor Bob, won $1,720,396 in the World Poker Finals this FALL 2011, in Las Vegas and on International TV. He goes back in November as one of the finalists to gamble playing poker for a winning pot of $8.7 million. He has a small store down on the Caribbean coast from me. A bit of luck in cards delivered, the rest is the same deal. RISK control, control of the emotions and don´t panic.

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****
Registered: Jun 2010
Posts: 837


New Post 09-13-11 03:20 PM Elite Trader Forums online, quote.

CROOKED ROULETTE WHEEL HERE, or STACKED DICE?

Straight buying and selling, one trade per week.

Well I had a wrong number on my order form last week. I was being careful trying to stay in less than 3 trades a week. Alas, on the Thursday I entered a closing limit order, a dollar below what I intended by mistake, and got closed out at a loss of -$210. So I quickly re-placed the trade and by the end of the day I was ahead by +$1010, so I closed the trade. This made me 4 trades in a week, which is VERBOTEN by the EXCHANGE DAY TRADER RULE.
Now I´m a BEGINNER, AMATEUR retail trader, with 10 trades ONLY under my belt, trying to figure out what I´m doing with a new system idea. Trying things, like staggered, trades, or scaling in and out and so forth. Since I´m nervous about my CASH, if I have a profit, I probably do the wrong thing and close out before the end of the day and take the profit. It works out in my very limited experience to about a 50 - 50 luck of the draw, if the next day, the price keeps increasing, or I was smart to close that same day and would otherwise have lost my profit by holding overnight. I consider myself a trend trader, a short trend though in a shorter time frame. My trends are basically 3 days, but you never can tell what will happen and I prefer to CLOSE the trade with a profit and re-enter the next day and try again with NEW TRADE, rather than hold from the initial buy for 3 days. Unfortunately, the EXCHANGE says they do not want me to do that. So now, I have to figure a way to guess right and hold overnight. Constant obstacles here, the EXCHANGE put in my way.
I have been trying to get my trades down to 1 a week, but usually because of my nervousness and inexperience, I´ve been frightened out a bit, and closed too early, not wanting to lose a profit, instead of holding and letting the trend run. I was gaining on my account though.
So this Monday, I got a notice when I entered into TOS from the exchange, that my total ten trades, two losses and 8 wins, that I have been flagged as a pattern and day trader and cannot trade any more, ( I was forced by my order error, to go to the fourth trade last week) unless I either increase my account ( originally $10,000 but now $8300 ) to $25,000 required by the Exchange, or I hold a trade overnight before exiting.
This annoys me, because I felt I was just getting a feel for it. Trying different things. So, I went to my wife and said I want to make my account $25,000 and need another $17,000. Quite rightly she said no. She said they were crooks, the game is rigged and if they will not allow you to trade with your own money, as you want, then it is a rigged game. No more money. She said, they are out to steal and rip off the new amateur beginning retail traders.
I thought about it. Figured she was right, so this morning I made my weekly trade and since I cannot take a profit, if I have one during the day, or at the end of this day, then I would reduce my risk and bet size. It is, even if I am right for my entry, still a 50 - 50 gamble if I hold over until tomorrow, which I apparently must do. So instead of trading 6 contracts which I had worked up to, I would go back to 2 contracts and the $28 win or loss small amounts, that I had been doing. SHAME though. I can´t scale in for risk control, I cannot take a profit, if I have a nice one, the same day. Burns my ass!
Turned out I lost BIG for me. Half of my gains, by beginning of Oct 3rd. ( -$942 ) The switching over from HOURLY TRADING, sort of DAY TRADE PATTERN TRADING cost me. Been HARD trying to evolve a MULTIPLE DAILY TRADING SYSTEM. Not so rapid, or intense. I still feel like I don´t have a grip on what the market will do ahead a few bars. The feel of what is happening and being in control is not there yet.
came back in the evening after the market had closed, the market had reversed and I was losing -$400. By Tuesday it got worse and I was losing -$700. The index was sliding along the overhead resistance line, so I waited. A long wait of 45 minutes, until the market started to tick down, giving me a sigh of relief. I figured if the market broke the upward resistance line, I would enter CALLS and make a LONG STRADDLE. Might as well use my learning experience of trading LONG STRADDLES. It would have locked in a loss of about -$900. Didn´t happen and I started to recover on the trade, until this morning, when I got filled for a + $541 on the OPEN GAP. So I learned that the FLUTTER is around $1200 in what I am doing as to price movement. Still do not have a clue what I am doing though. I have to re-learn this stuff on how to trade multiple days. Guess I was a DAY TRADER and it must be they made that EXCHANGE RULE as too many day traders were making too much money. It is harder to figure out what the market will do using multiple days for one trade. I´ll figure something out though, I´m sure. In the meantime, I was LUCKY this morning. VERY LUCKY! Can´t beat LUCK!

Bet 13. Got caught on this one, in CALLS, very slow movements, but reversed. Eventually I put a losing Long Strangle on it, with Bet 14 in PUTS and we will see how it works out. Essentially locked in a loss, but you never know, it might come back? Next week hopefully.
Friday Sept 31st, 2011. Got out of my PUTS at $154 profit. But left holding two CALL bets. Tried averaging them looking for a bounce on Monday. But my system is saying I am going to have to take a loss on both? Will see?

*** October 1st, 2011. Have had trouble mixing up my HOURLY trading system since they will not allow me to do one day trades anymore and learning to trade multiple days. HAVE to hold overnight. Different system and think I am going to take some losses to clear out two trades that didn´t work out well. I´ve been tweaking my trading system in MULTIPLE DAILY TRADING and hopefully now, have it figured out? Won´t know for a couple of weeks, as I have to get rid of two losers I am holding first, and start FRESH. I´m out of both CALLS trades and lost half my gains over last 5 weeks. Got out of my losers on Monday, Oct. 3rd for a loss of -$942. Hope I have a handle now, on multiple days trading.
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**** Two losses in a row. Bets No. 15 and 16. Haven´t been able to adjust to multiple, overnight days of trading. Going back to paper trading for a bit! Got to work on my method.
Okay! Did some paper trading and meddling with my methodology. Think I have it now?? Trying the new methodology out in Trade no. 17 a single contract. If it works out okay, will move back to 2 to 4 contracts. Should put me near the end of this month October, before I can start serious trading again, if the one trade trial works out okay.
TRADE 17 results was OUCH!!! Lost again. Did everything right, except I used an hourly signal to buy and was totally convinced if I held overnight as required by the EXCHANGE that the index would go down. It didn´t and I got my head handed to me on a platter. LOST AGAIN! The only darned thing I did right was just trade one contract to limit my risk, on what I thought was a sure thing. SHEESH! Something wrong here? If I am only allowed by the EXCHANGE to trade overnight, or more multiple days, I have to refigure how to do this trading by days, for entries and exits and strategy. Nothing working so far. Have to stick to one contract daily, until I get some sort of rythm.
In 9 weeks, of trading from the start in mid AUGUST, until October 21, I made about $2000, before the EXCHANGE forbid me to trade the same day in pattern trading, they called it. Far as I know I´m not pattern trading, just going with the price flow movement. Taking fixed profit targets. Anyway, they told me I can only trade over night, which is MULTIPLE DAYS trading. Screwed me over royally since! Haven´t been able to catch the rythm for several reasons. Going to make a new start on it, once again! The trading is also too slow and I´m unable to EXIT on reversals in price flow. Got me a string of losses and have given back nearly ALL THE PROFITS I had made. Still struggling to figure out how to handle the rythm in multiple days. It is a lot different trying to work a DAILY or SEVERAL DAILY bars. The price swings are too irregular and the price losses create a climate of panic and fear. Not my cup of tea at all. Especially on a small retail trading account. The wife will not let me up my account to the $25,000 the EXCHANGE want to day trade price flow changes.
October 21 st, 2011 Long string of losses, in a low volume market. Tired of losing! Going to go to cheaper out-the-money options. See if I can pick up the rythm again? Risk less and gain less, which is too bad. But certainly I´m not with it right now. What is cramping my style is being forbidden to day trade, where I can take QUICK losses, or profits. Holding overnight kills me. October 30th, losing streak continues.

NOVEMBER TRADES AND THE LUCK, OR SKILL CHANGES?

Two winning trades beginning of November. ( Trades 23 and 24 ) Encouraging! Think I have a new system worked out, to work with the EXCHANGE REQUIREMENTS, for overnight and multiple days of trading. A combination of returning to what I was winning at before, with a TWIST to it, to extend the period, to satisfy the EXCHANGE RULES so I´m not a DAY TRADER, or pattern trader as they call it. Will start to increase number of contracts and move back into more expensive premiums to get higher DELTA numbers. Still shooting for $10,000 by XMAS. Lost about (-$1700 drawdown) during my losing spell, from my profits. Made the mistake of staying too deep in the money, with options. Should have dropped down to OUT THE MONEY options, to conserve capital during a losing streak. Due to the EXCHANGE forbidding me to day trade and close same day, I couldn´t catch a new method or rythm. Took a month to figure out a new system. Big challenge now to get back to $10,000.
Trade 27, I tried to stagger, OR SCALE IN, buying into it. Opened with a one contract, then later entered an order to buy 3 more contracts, but the market ran away from my order and had to cancel the 3 contract buy. Not going to chase the market in short term trading.
Trade 28, worked out. This time I made the initial buy with 3 contracts and so far the trade is doing good and is profitable, when I looked after the CLOSE of market on Wednesday, Nov. 16th. 2011. ( Can´t SELL until the next day - my NEW EXCHANGE RULES ) So I went downstairs, to see if I can teach myself how to weave a hammock. Did lock in the profit of *$222 shortly after the Open, not wanting to risk a loss, even though the premiums continued to give more profit. What I feared happened, as the trend continued all day and because of my fear, the day could have earned $600 instead of the $222 profit, I took. C´est la vie!
**Planning on the next trade being 6 contracts, as my WINNING STREAK is HOT!
New trading method is HOT and COLD gambling method. When you have a RUN of LUCK, capitalize on it, when COLD, cut back the risk, to preserve capital and limit the DRAWDOWN. See how it works out in practice? My estimates are to break even with $10,000 by XMAS, I have to up the RISK ante, or I cannot do it, in the few weeks left? In the next four weeks of trading I will have to trade 6 contracts each time.
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My Belize neighbor BOB heads for the FINALS in Las Vegas, for ten players who survived from the 7000 that started. The WORLD INTERNATIONAL POKER CHAMPIONSHIP PAYS OFF AT $8 MILLION. STARTS SOON IN NOVEMBER AND BOB HAS A CHEERING SECTION ENTOURAGE FROM BELIZE, OF SEVERAL HUNDRED GOING WITH HIM. LOCAL TV WILL RUN THE PLAY FULL TIME. At least somebody from Belize is making money betting. It sure isn´t me! ( grin )

Bob took the 7th place prize in the Poker Finals in Las Vegas. Got knocked out in the second round. An Englishman and a Ukranian got knocked out earlier. Finals are Tuesday night for last three guys. Winner gets over $8 million. Most of the winning players learned on the internet playing poker. Bob´s take is $1.3 million before taxes. Says he is going to buy a yacht, as he loves sailing the Great Barrier Reef islands of Belize.
***The cheering support section, who flew from Belize to Las Vegas in the USA, for the Finals of the World Poker Tournament. Bob was evicted in 7th place, with a prize of $1.3 million usa. As an amateur, Bob says he will turn professional next year, starting a circuit of POKER TOURNAMENTS.
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NOVEMBER, 2011

**** In order to comply with the EXCHANGE RULES, I´ve switched to SWING TRADING. This tends to run several days at a time. This gives me overnight trades which are the EXCHANGE major requirement. Wife will not let me put $25,000 in the account, which is their other criteria. I can´t see what business it is of theirs, how much money I am gambling with though, so it has to be to their advantage. So November sees me SWING TRADING and the winning has started again.
WHOOPS! Decided to close out with a quick loss, Friday, instead of holding over a weekend. The trade was probably good, but I´ve been re-reading Linda Rashke, Market Wizard, who is trading the same method I am, more or less. I agree with her rules and decided to implement one rule, about getting out, if scared, or uneasy. Take the loss and enter again another day, when things are clearer, instead of holding on a wait and see attitude. Only time will tell. Another rule of mine is to drop to one contract after a loss and go to out-the-money options for the next trade. We shall see what Monday brings on that decision? Mentally, pyschological emotional decisions are the bain of a trader and hard to implement good resolutions and rules!

Trade 30 was exited, as the market didn´t do what I wanted. Managed to BREAKEVEN. I could have made a profit, if the EXCHANGE hadn´t banned me from closing the SAME DAY when I had a profit and a reversal. Instead it took me into half way through the next day, to just get out by the skin of my teeth. Anyway, I´m hoping to anticipate the one weekly volatile surge trade, if there is one?

Trade 31: Tried a STRADDLE, then used one side as insurance and when I got some breakout, dropped the losing side and waited for events. It worked out! This is end of November and the market is low volume. Heavily manipulated. I see the market makers are wiping out the STOPS in a long bar before the CLOSE. A lot of people have gone on holiday already, I guess, with an early winter.

Trade 32 overnight. New trend still strong. Increased the bet size to four contracts. Set a profit target from what I see on the indicators. Got me some newer indicators, as I cull about 50 indicators for best performing information, forecasting types. It´s still a gamble and a bet though. Especially since ALL indicators are based on historical data.

TRADE 33 BUY 2 QQQ 53 CALLS @4.92. CANCELLED as price moved away and didn´t want to chase it. Order 339223496 -UR OUT-

Trade 34 Entered and cancelled after waiting an hour for a FILL

Trade 35 Entered and cancelled after a half an hour for a fill. No go!

Trade 36 2 STRADDLE, QQQ, CALL/PUT 56 @$5.66. Raised my price to a spead of $5.66 and got FILLED BEFORE the CLOSE, FRIDAY. Have no idea what it will do on Monday, hence the STRADDLE SPREAD.

Trade 37 The PUTS were placed before market open, but the GAP OPEN jumped over the sell order, without FILLING. CANCELLED IT.

Trade 38, Sold the CALLS near the top of day´s action for a $60 net gain. Was still holding the PUTS half of the straddle at a running loss of $140 or so.

Trade 39 Sold the PUTS on a pullback and had a resting order to sell them, at a precalculated price, minimum loss. The order got hit and FILLED, for a NET GAIN on the Long Straddle of just $4. I was relieved I did not lose any money, holding over until Monday, from the Friday placement of the Long Straddle.

Trade 40 This was the other side of the STRADDLE bet, which got sold. Not sure what happened from my notes on that one? But it lost a bit. Not much! I get the balance from TOS, Balance was $7752, which was like down $2 or something.

Trade 41 This was a fresh bet. Played last night with an idea to identify the pressure in a trend, for an overnight trade. Actually I meant to hold for several days, but decided to take a profit the next day instead. Set a pre-fixed profit target that got hit at NOON. Made +$99. The pressure idea for the indicator worked out okay and I had 3 contracts. Was thinking of putting on 6 contracts, but lots of new ideas don´t work out. So stuck with 3 and it made the target nicely. Next go around from my new Pressure indicator, methodology, will try that again with more contracts.

42) Another system I´m trying. Bought on Friday morning, to hold over until Monday. Those are the rules the EXCHANGE put on me, as they classified me otherwises as a day trader. Got the day off Friday now.
Closed the trade with a small profit, Monday OPENING. SCARED as the trend is expected to change by me, today, or tomorrow. So elected to try this trade, but regretted it afterward and decided a few bucks profit and paying the commissions, would be enough for a precarious timing of this trade. Just wanted to see what would happen in my new methodology. All ended well, anyway.

TRADE 43 Made a mistake in entering with the wrong strike number. Had to CANCELL and UR OUT. Then reorder in trade 44.

TRADE 44 Enter okay and go my FILL. Market proceded to drop 35 cents on the order. This is a multiple day trade expectation, so will hold, come hell or high water.

44) Disastrous week for me! Back to where I was in my balance 5 months ago. I was trying a new method and at the same time, my win ratio was progressing, so I scaled up my number of contracts. The new method and indicator, FAILED to perform in real time. It looks great on historical data. Then like a deer blinded by a car headlights at night, I did not QUIT, but held hoping my indicator was right and the market was going to correct it. NEVER DID, so I got whopped all my gains, that I had made in 5 months. Back to something new for 2012.

45) I made a foolish mistake of trying to insure my loss by completing a strangle with another trade. Every time I have done this I have lost doubly. You would think I would learn? Anyway, it is Expiration Friday and have closed out both trades today. The only bright spot, I probably managed to cut about $200 off my losses. My balance is only ahead $21, in 5 months. SHEEESH! Been a lot of fun though and I haven´t got down to my level of maximum loss, before I quit. So I´m still in the game and re-thinking things again. I curse the EXCHANGES every day for forbidding me to day trade ( cut my losses short ) same day. Instead of being forced to hold until the next day, like they want. RUINED my perfectly good trading method I had four months ago, being able to cut my losses on the same day. I canna see the difference between being allowed to pattern trade on $10,000 versus $25,000 which they want me to make in my account.
_________________________________

Ray Auxillou, January 2012, Age 74 years going on 75 years. ( Maybe? )




2012

STARTING THE NEW YEAR, 2012, WITH A BALANCE OF $7333.32 according to my broker, Think or Swim. I lost 26% of my $10,000 starting account six months ago, in June, 2011. I had figured to risk HALF, or $5000 in the learning process.

My balance is out by my last recorded trade in 2011. Recorded on a work sheet. It is perhaps that my last trade was a paper trade and not a cash trade? That must be it. I don´t remember.

I emailed TOS my broker and complained that I had been unable to close trades during the day, due to the DAY TRADER RULE and their branding me a PATTERN TRADER. I got several back and forths on the subject. As I understand my written instructions, I am only allowed 2 DAY TRADES in one week. That is the ability to close a trade the same day. Any other trades in the week, must be overnight multiple days trading. I don´t think this is going to cramp my style too much? So I am going back to my winning method, a bit curtailed in ability, but still should be able to make more than one trade per week. My theory is; that you have to make more trades, to stand any chance of making a living at it. If you have a WINNING TRADE RATIO METHOD. Since OPTIONS are decaying, or melting premium assets, ( TIME DECAY ) to hold more than a few days is self defeating. I had been averaging 3 trades a week, as a goal target, to avoid the PATTERN TRADER designation, but entered one order on the 3rd trade wrongly and had to close it fast and re-enter. This put me into a 4th trade some 4 months ago and got me banned, as the information box on my screen told me, from doing day trades. I don´t plan on a DAY TRADE, I simply close when the volatility on the premium starts collapsing and reducing, or I was uncertain what the opening would do the next day. Under the assumption that a profit in the hand, was better than one in imagination. I could always re-open another trade the next morning, if wrong. At any rate, under revised conditions, and deeper explanations through my broker on intrepreting the DAY TRADER rule, my current understanding I can do a day trade TWICE per week, or more trades that span more than one day, overnight. I look forward to seeing how this works out in January, 2012. There is also the factor, that this is either a hobby, I would like to turn into a profession, if I could get successful and my psychological profile likes to have something to do with my old age time left. So planning and completing two or three trades a week, FILL MY DAY with some activity, that a senile, old man can do, who is no longer physically active, like a young man. I enjoy having a purpose and challenge in life.

JANUARY TRADING STARTING THE YEAR 2012

46)Buy Jan 4, 2012 1 March QQQ 55 CALL @$3.55, sold $3.30 ( -$26 )Balance: $7302.37
47) Buy 1 March QQQ 57 CALL @ $2.50/ sold $2.75 (+7% on trade) Balance: $7321.42
48) Wed. Buy 1 March QQQ 55 CALL @ $3.96/ sold @$4.24 (+5% on trade)Balance: $7343.47
49) Frid Jan 13, Buy 2 March QQQ 53 CALL $5.65/ Sold $5.75 Balance: $7351.58
50) Wed Jan. 19 Buy 1 March QQQ 57 CALL $3.50/sold thursday $3.78 (+6%) Balance: $7373.63
51) Frid. Jan.20, BUY 2 APRIL QQQ 53 CALLS @ $7.38/ sold $7.66 together with trade 52 and 51 together. (+3% net on two trades )
52) Mon. Jan.21 Buy 1 APRIL QQQ 53 CALL @ $7.36/ sold on Wednesday a.m. $7.66/ BALANCE:$7442.79
53) Frid.Jan,27, Buy 3 April QQQ 58 CALLS@ $3.60/ sold $3.68/Balance: $7448.98
54) Frid. Feb.4, Buy 2 April QQQ 60 CALLs@ $3,20/ sold Wed at $3.51/ Balance: $7499.15
55) Frid. Feb.10, Buy 2 April QQQ 61 CALLS@ $2.90/ sold Tues. $$3.33
56) Frid. Feb. 10, Buy 3 April QQQ 62 Calls @2.33/ sold Tues. $2.64 Balance: $7648.47
57) Thurs.Feb 16, Buy 10 March QQQ 61 Calls @ $2.79/sold Thurs $3.13 Balance:$7948.26
58) Tues. Feb 21, BUY 10 March QQQ Quarterlies 63 CALLS @ $1.75/sold $1.57
59) Tues. Feb 21, Buy 1 April, CIGX 2.5 @$1.75/sold $1.40 Balance: $7677.15
60) Frid. 24th, Buy 2 IYT PUTS April -90-"2.30/ sold @ $2.36 Breakeven
61) 1 QQQ PUT 64 May sold in error and closed at $2.36 in a reversal day trade at $2.35. Loss of $-9 Entry error on my part, hit sell inside of buy.
62) 1 QQQ PUT 64 May, buy $2.35/ sold $2.62 Balance: $7689.38
63) 1 HAL Call 37 April $2.47/ sold $2.30 Balance: $7666.43
64) 1 QQQ May 65 PUT $2.59/sold $2.37 Balance: $7629.54
65) 2 May QQQ Thursday 64 Call $2.59/sold $2.39 ------------
66) 1 March FL 29 Call @$1.20/ sold $1.20 Balance: $7626.68
67) 1 May QQQ Friday, March 2nd., 63 CALL @3.23/sold $3.02 ------Balance:$7522.82
68) 1 May QQQ Monday, STRADDLE -65- "$4.20/sold $4.34
69) 1 MAY QQQ 69 CALL buy .28 cents/sold .23 cents
70) 1 MAY QQQ 53 PUTS, buy 0.33/ sold 0.33 Balance: $7536.95
71) 2 May QQQ 68 PUTS, buy $4.76 HOLDING
72) 1 MAY QQQ 63 CALL, @ $3.01/sold $3.14
ARGUMENT WITH TOS HELP DESK. MY SCREEN IS SHOWING I AM OPEN 2 QQQ 53 puts, BUT i HAVE NO PAPER RECORD OF THIS TRADE, OR TRADES. ASKED THEM TO CLOSE EVERYTHING. 375806550. HELP DESK GUY WAS KEVIN.
73/74) 1 MAY QQQ -62- CALL @$4.12/sold $5.03 ....Balance: $7451.2
75) 3 QQQ June CALLS 64 @$4.35 / sold $4.06 .....Balance: $7346.42
76) 1 MAY QQQ 67 CALL @ $1.66 / sold $ $1.54 ....Balance: $7320.51
77) 3 QQQ JUNE 67 PUT @ 2.57/sold 1.84
78) 3 QQQ June 67 CALLS @ $2.36 / sold $2.85 ....
79) 3 QQQ June 67 Calls @ 2.61/sold 2.85....................$7435.92
80) 3 QQQ June 67 PUTS @ 2.25/ sold 1.95 .........7320.22
81) 1 QQQ Calendar April weekly/April monthly .........7318.22
Calendar .........7271
82) 3 QQQ June CALLS 67 @2.33 morphed into a strangle
83) 3June QQQ PUTS 66 2.26/ "
84) 2 June Calls QQQ 67 @ s1.43/ "
85) Error instead of selling Monday April 17th 3 PUTS, accidently bought 3 more PUTS. Caught the next morning and exited by selling all 6 QQQ 66 PUTS @ 2.31
86) SOLD 5 CALLS holding QQQ 67 @ $1.94 .......... Balance:$7272.91
86) Calendar continued: closed the SHORT on the CALENDAR, as apparently it was left open and not settled on Friday. Must buy back the SHORT is the lesson by TOS HELP. 87) Closed the short with the help of TOS a week later. Balance: $7300 88) Took a STRADDLE 5 - QQQ July 66 Call/Put with Spread of $5.06 Finally sold just the PUT side of the STRADDLE 5 CALLS QQQ 66 @ $3.21 ( NET +$285 ) 89) Still HOLDING 5 CALLS 66 QQQ @ 2.56 90) Bought 2 CALLS 66 QQQ @ $2.00 holding 91) Bought 3 Calls, 66 QQQ @1.93 holding TOTAL HOLDING OF 10 CONTRACTS OF QQQ 66 CALLS 92) SOLD 10 66 QQQ CALLS @ $2.37 Balance: $7708.52 93) CALENDAR TRADE BUY 1 QQQ JULY PUTS @3.12/ 1 QQQ 66 PUTS weekly April @ $J1.24 94) CLOSED CALENDAR TRADE, SOLD THE WEEKLY@ .10 CENTS AND BOUGHT THE JULY 66 QQQ @ $2.25 .. Balance: $7712.06 95) 1 QQQ 67 PUT @ $1.47/sold $1.96 96) 3 QQQ 65 CALLS June @$2.71/ sold $2.87 Balance: $7764.27 97) 15 QQQ 67 July CALLS @$1.15/ sold .71 cents (-$780) Balance: $7058.73 98) 1 Buy June Calls, Calendar/sell May 4 Calls .71 cents, sold .92 cents Balance $7073.68 99) Buy 1 Aug 62 QQQ STRADDLE $5.51 / 2.76/2.76 Completed for + $86 Net profit Balance $7159 100) Buy 1 Aug 60 STRADDLE $5.85 / 2.93/2.93 Sold 1/2 Straddle for +$97 net profit Balance: $7256 1/2 this STRADDLE in a PUT is not closed yet, so the whole trade result is not yet known. ???? 101) Buy 1 Aug. 60 CALL QQQ $3.73, sold $4.00 earned net +$17. Balance: $7273 ( Due to OPEN TRADES, my TOS Balance is showing $7151 ) 102) Buy 1 Sept. 62 LONG STRADDLE QQQ @$6.44/ $3.22/$3.22 HOLDING **************** ________________________________________

RUNNING COMMENTARY:
Trade 46: Hopefully I have my understanding of the Day Traders small retailers HANDICAP put on by the HOUSE CASINO ( Exchanges ). Anyway, I went overnight with a measly 1 contract and lost (-$31). See if I can refigure my methodology for volatility trading I was using 4 months ago. I´´m confident it will come back to me, but will have to "live trade" to get it.

Trade 47: Worked out on 1 contract for a +7% gain. Did daily trading early in week.

Trade 48: 1 contract Jan.11 - 12th, made 5% on the trade. Wednesday -Thursday trade.

Trade 49: 2 contracts at $5.65. Trade did not do what I wanted, so got out as soon
as I could, covering commissions. I had the intention of re-entering at a lower price should the market allow. This was my one within an intra-day trade, for a 5 day period. So only have one other such trade allowed next week. Got to watch it.

Trade 50: Went okay! Overnight trade, from late Wed to Thurs. for +6% Net. I´m not quite ready yet in this first month of the year, to take more risk with more contracts. Still trying to confirm I have the feel of the market movements. Very tight moves with 17 VIX, a BULL trend. I am paper trading a weekly credit spread in CALLS to see if I want to do a Monday entry and expire Friday. Usually earns 3% for a week, if you are right. Can´t get the premiums in the QQQ, so doing them in the OEX.

Trade 51: Raised the risk and jumped to 2 contracts. See how it goes holding over the weekend. Missed taking the volatility jump, Monday morning. CLOSED on Wednesday A.M.

Trade 52: Added another contract as I feel the intermediate trend will recover and make a new high this week sometime? Might add another depending? Closed Wednesday A.M. Went okay! Low VIX so not much for profits, just scalping. Ended up with a +3% gain, on the two trades.

Trade 53: 3 contracts this time. I feel the trend is ending, but might get a short scalp here? Probably over the weekend. WHOOPS! Monday and the market did not do what I expected, so tried to get out in the last half hour of trading, without any losses. Ended up covering commissions and gaining a small net of $6, which is better than losing.

Trade 54; My indicators say we are topping out, but a last GAP UP this Frid. Feb 4th, tempted me to get in again. Just planning to try and SCALP a little. I´ve been moving, planned for four months to the Barrier Reef tourist island of Caye Caulker, from my home in Western Belize Alps foothills, so didn´t do much of anything done this week. Planning on a little fishing and sailing at 75 years of age during our summer here. Discovered a new way to follow a trend, fiddling around.
Got out finally on Wednesday on profit target, a +7% gain. Tough market with VIX low at 17 to 19. Slow BULL TREND, but supposed to be topping out.

Trade 55: Market gapped down and hit what I had pre-calculated would be the bottom for next week in this UP trend. So I bought it for 2 contracts. Made not as much profit as I wanted, but did get out with a profit.

Trade 56: Trying out BLIND, my SECRET MAGIC BUY INDICATOR, see if it works mechanically? Bought 3 contracts. Made a profit late Tues. at the Close. For trades 55 and 56, I made +$147 together.

Trade 57: One day trade, only allowed two for the week, or 5 day period. Anyway, netted $300 and used a bigger bet size this time. 10 options and a 2nd Month instead of my usual 3rd month. Volatility started to die down, so exited same day. I had intended to trade 5 contracts at $5, but forgot and incurred more commissions by 10 contracts under $3. I´d just come back from a swim at the beach and had a signal from my SECRET MAGIC BUY INDICATOR to enter. So I did in a hurry.

Trade 58: Made two mistakes on entry of QQQ. Bought the QUARTERLY instead of the regular month March options and also did not wait as I planned, clean forget in the GAP UP jump and ended up paying 7 cents too much for the contracts. Had planned to buy after the 9 a.m. retraction. Finally got shook out at a loss on Thursday, only to see it go profitable on Friday. I just got tired of it. No excuse.

Trade 59: This is a first EARNINGS play experiment. One April ( 2nd month ) contract only and want to see what will happen over a period of two weeks or so, as this is a pre-earnings trade, planning to EXIT before the EARNINGS REPORT sometime, due on March 13th. Placed solely on technical charting merits. Closed it on Thursday, expected the run up on Thursday so exited. The runup occured next day Friday. Cés la vie! TOTAL LOSS FOR BOTH 58 AND 59 TRADES CAME TOP -$271.11, plus the commissions, which totalled -$66. Somehow the commissions are cheaper in a ten lot, so my actual total loss was $271.11. Not sure how they figure those things out? Maybe my commissions ae included in that $271, because I´m going by my TOS balance for trades?

Trades 60 through 64 started experimenting with trading other indexes and stocks. Was trying to learn how to trade EARNINGS REPORTS. Hasn´t worked out good at all yet. BECAUSE OF A LOSS, I WENT FROM TEN CONTRACTS BACK TO ONE CONTRACT FOR TRADING, UNTIL I GET A RYTHM AGAIN. My drawdown is around $300 roughly so far.
Trade 61: Was a mistake, I sold instead of buying and had to close it again and start over with a new trade. Hit the wrong key.
62) 1 QQQ PUT MAY, 64 @$2.35/ sold $2.62 Balance: $7689.38
63) 1 HAL Call 37 April @2.47/ sold $2.30 Balance: $7666.43
64) 1 QQQ May 65 CALLs@ $2.59/ SOLD $2.37 Balance: $7629.59
65) 2 QQQ MAY Thurs. 64 Call @ $2.59/sold $2.39 ( -$54 )
66) 1 FL March 29 CALL @$1,20/sold $$1.20 Balance: $7626.68
67) 1 QQQ MAY 63 CALL @3.23/sold $3.02 ( - $28 ) Balance: $7522.82
Trade: 67 Last four trades was experimenting with stocks instead of an index, trying to get the Earnings Report POP. Didn´t work and took very small losses, mostly commissions. Will stop trying Earnings Reports POP. Too much gambling for my blood. The money management system of dropping back to one contract after a loss, seems to be controlling my losing streak losses very well. I´ve given up on earnings reports, but have decided to look for stocks, six weeks after an earnings report to see if I can find trades. Before the next quarterly earnings reports. I have also just received a lesson on how to do gamma scalping using Calendar Spreads, from Don Bright and will try that going ahead. In the meantime this Monday morning the market dropped below my regression line and wanted to concentrate on the LONG STRADDLE, so I exited with small losses in each of my CALL trades, that didn´t work out.
68)I´m into a LONG STRADDLE. Going to learn how to do Delta Balancing/Hedging.
69) and 70 ) Were a long straddle and a delta hedged PUT for a test trial. Was not impressed with the effort and return ( about +$14 ) Still sort of interested in SELLING a STRADDLE, as Don Bright suggests to me. Just haven´t figured it out yet, as to a $5000 account with the margin and stuff involved.
71) Have no idea why this trade went wrong. Didn´t take the loss quick and now I´m
stuck, waiting to see if it will work itself out, as we seem to be forming a range?
72) This CALL worked out. Trying to get back into the winning regularly rythm again, before I increase bet size.
73) screen showing I´m open a 3 PUT but my written paper record shows it was closed. According to Kevin at TOS I had two seperate singlse OTM 53 QQQ PUTS still open. I had no record of this, so told him to close them as losses.
74) 1 QQQ May 62- Call@$4.12/ sold $5.03 +20% gain on trade and back in the groove as to my old volatility trading method. Cleared the account of all experiments. So we start fresh. With $7451.24
75), 76), 77) Losers. Had trouble picking up the rythm.
78) Got the gambling run I was looking for.
79) Added more contracts and tried to average up. Worked, but not that good.


- MY MONEY MANAGEMENT RULE SAYS I DROP BACK TO ONE CONTRACT PER TRADE AGAIN, AS I HAVE LOST- FROM TEN CONTRACTS. I´VE BEEN PLAYING WITH TRYING TO LEARN SOME OTHER TYPES OF TRADING AROUND EARNINGS REPORTS. MAYBE I SHOULD LEAVE THAT ALONE? CONFUSING AN OLD MAN. ( money management )
_____________________________________________
Caye Caulker beach outside my front door. Trading from my living room.


Decided to call my FIRST YEAR in this by a name, and will run this probably through to JULY and will either make my goals, or go broke and quit. Anyway - the name is now,
-"JAGUAR CAPITAL MANAGEMENT"-, of Belize, Central America. Score for first month of January was SHARES started out at .73 cents a share on January 1st, 2012 and ended January at .75 cents a share. Got an EXCEL sheet someplace, to graph it eventually. Recording on a weekly basis.
FEBRUARY 14TH, SHARES ROSE ON TOTAL ACCOUNT TO $0.76 CENTS A SHARE VALUE. Got another trade in on Thursday and made $300, so that put SHARE VALUE AT .79 CENTS by the 16th of Feb.16.
Trading from Paradise. Caye Caulker, Belize, voted one of the ten top tourist islands in the world. Watching the morning sunrise at 6:05 a.m. in February,2012. As of now it is just finishing MARCH and entering April. Going to raise the bet sizes and RISK.
I feel I have two trading systems viable now. Will be trying them this coming week and raising bet size in numbers of contracts. Learned CALENDARS and will include a first cash trade in the calendar this coming week. Studying the Long Butterfly now also over next few weeks.
__________________________________________
WEEK ENDING ACCOUNT RESULTS

Account remains this week; Balance: $7764.27 I started the year with $7208. TOS BALANCE: $7764.27. Share capital at .77 cents a share this week, end APRIL 31st, 2012 Would like to make $10,000 by end of May 31st. In eight weeks.
Been trying butterflies, calendar spreads and condors. Haven´t made much with any of them. Their recommended reputation has been they are less risk than most other type of spreads. They basically sell TIME DECAY and work best in WEEKLY options. Decided to work on my STRANGLE/STRADDLE ideas. Developing something now. The idea to trade more slowly over a longer time frame of a week or two. _____________________________________
OPTION TRADERS COME FROM ALL SORTS OF BACKGROUNDS. WHEN YOU GET TOO OLD PHYSICALLY, TO DO OUTDOOR STUFF, THEN YOU GET A COMPUTER AND LEARN TO MAKE MONEY ( HOPEFULLY ) AND TRADE OPTIONS IN CHICAGO. Any idiot can do it right? The more education you have, the worse off you are in trying to learn, abstract crowd mob pyschology, that is a necessary part of trading options.

Snorkeling business on Great Coral Barrier Reef off Belize.

SNORKELING PHOTO BY GREAT BARRIER REEF, OFF CAYE CAULKER, BELIZE 2012.
Snorkeling by the Great Barrier Reef of Belize off Caye Caulker. Those were the days. I spent decades doing this and lived well. Not rich, but a nice delightful pleasant life, with boats and the warm seas as my dream.
Posted by A Professional BEACH BUM retires in Belize! at 7:51 AM 0 comments