Indices continued to downward this week after last week's FED announcement. SPX and RUT retested early Sept's lows of 1910 and 1112 respectively. SPX held, but RUT failed the retest on daily and weekly charts. Biotech and healthcare were amount notable sectors pulling down RUT and SPX. The next level below for both indices is the Fib 78.6% RT and possible August 24 lows.
I have been adding bear calls on any attempts of bounce and staying heavy on bearish side in my positions and margin usage. So far it's working. My recovery continues slowly. The P/L for this week is -$3100 with realized August losses. The balance is down from -7K to -4K. The realized losses will continue to show into early Oct and impact Oct's total returns. My goal is to make a positive return for this year.
The learning and refining my trading system continues. I am staying small and managing my profit from 50 to 90%. I have learned a lot from the Skype KST group where members share their trading practices and styles. So far I have leaned to widen my spreads, collect more premiums and smaller sizing. I will try to trade straddles in my paper account first as Craig has shown his success on Tasty Trade.
My main task for risk control is to figure out how much capital is enough or safe for one spread, one naked or one straddle. My biggest failure during this sharp down turn was over leveraged without knowing my real risk levels.
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