Friday, August 8, 2008

In A Box

As a newb, I've been having grave difficulty trading this market profitably and I think more than a few professionals have been too. We're in a box, so one idea I had is to sell bearish vertical spreads at the top of the box and then consider sell bullish put spreads at the bottom. The white downward sloping lines at the top denote my bearish outlook (I'm unphased by the highter lows) and I'll post on that later.

Others have ommented elsewhere about the "lack of decision", "whip saw", "lack of conviction.

This is providing one hell of a education for would-be traders. In order to join an investools Memebers Group I was asked "Do you have an accountability parter." To that I answered "No." But maybe I'll hold myself accountable to the entire planet by blogging my trades. (Warning: there's no evidence that I have ever or will ever make any money in the stock market.)
The green circle denotes where I sold a 136/138 bearish call spread on the spy for $0.35. I also used the Investools/TOS market forcast oscillator to guide my decicion ...we'll see how that goes. In May/June I got smoked pretty bad with real money by selling bullish put spreads basically because I had no clue where the market was going. Hopefully, I can develop a clue this time around.

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