Saturday, August 23, 2008

Going Long the Semis

I've taken up the challenge of several of my Investools instructors and laid down a trade strictly based on what I see on the chart and somewhat against my "gut." I see a little bounce trade on SMH, the Semiconductors Holders ETF. I'm buying NOV 08 29 Calls which are in the money with paw-lenty of time before THETA chews my butt up. Hmm.. maybe I should have bought OCTs but here goes nothing.

This is only papermoney but I take my paper account deadly seriously because until I can stoke it up ... I've prohibited myself from trading for real. I'm up about 5.2% in one month which I suppose isn't too bad.


nivram107 said...

Thomas, What type of trading plan are you using,

That is one of my chores over this weekend. Review, Update, and backtest my Long call and Long put trading plans.

Thomas Shawn said...

I'm just starting out with 3 accounts and I'm about to add a 4th.

#1) Papertrade where I am exploring all styles except day trading. I'm an Investools student in the Basic Options course right now. So my big push now will be OPTIONS.

2) Educational IRA - This is how I intend to finance my kids private schooling. Here, my plan is my "Fred Sanford Junk selling" strategy that I learned from thinkorswim instructors: sell out of the vertical spreads on SPY, DIA, IWM, QQQQ for .30 to .40 credit, 4 - 6 weeks from expiry.

It's a strategy impossible most other brokerages because thinkorswim is only $1.50/contract!

I had some huge success from Jan-Apr with this strategy until I f-ed it all up because I was not paying attention to Market Posture and I did not have a plan in place.

3) IRA account ... looking at heavy covered call activity with some directional plays

4) Margin account (strategy yet to be determined).

Overall .. I will have strategies laid out for every trade just like a quarterback has a strategy for every situation. It's all documented in my Investools page and when I'm done I'll probably post it here or on not because I am great but because I've chosen to be an open person.

I hope I can continue to advertise myself as a newbie for a long time because it is intimidating writing about this stuff, inexperience is my only line of defense.

Thomas Shawn said...

For the record: Got stopped out on Tuesday. Wednesday was the real buy signal but I didn't bite.

I get a little rattled even after a 1% hit.

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