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My 2 cents on current situation.
1- Buy Puts according to your portfolio, 5 % out of money to cover your portfolio value, not your actual value, in case it is as bad as it looks.
2- Raise cash where you have profit.
3- Buy Six months calls ITM or Bit OTM stock or Indexes.
4- Aggressive traders should buy 3 months OTM calls, but not more then 5 % OTM.
5- USE only money which you can afford to lose.
6- In most cases 10% money can buy enough calls which covers 100% value of portfolio stocks.
7- Be humble, and nimble it in piece meal, do not afraid of transaction cost price decline can cover it.
8- Buy 50 % when underlying is above 34 EMA on 5 Min chart and CCI is rising and remaining when it cross SMA 65. See if all indicators are in sync.
Happy Trading.
People with plan will make tonnes of money those who have no plan can loose a lot. In any situation you can lose money so buy Maximum time. Time heal many things.
Stay peace full, stay calm anger can not solve it.
Farooq
Ollie,
If you like buy leaps on Ford, I hope you will like them when you will sell them after 2-3 years. Although stock is also trading at options price now.
I do not know when I can say it has life (Ford), if you come to know let me know.
I am terrible in picking bottom. I think some where I have some thing learn from Jimmy Rodger He usually buy 4-5 years ahead of time then it goes to half before moving up.
We doctors always try to abbreviates so sorry for confusion.
Roy is not trading QID, QLD options lately he is also trading less QQQQ options. He is right in doing so one can make 20 time more money then index options. UWM can move 100% only index fund that has potential.
Indexes can not move 100 % but there are many stocks which will move 100 % in coming rallies. Only time when calls buyer will cover there multi year losses.
Danny is fortunate that he has mother like you. Kids are Joy.
Happy trading.
Farooq
Ollie,
you read a three day old message and act on it today. Wow.
QID, QLD trading or any trading based on my system is not suitable for any one who has PDT restrictions.
Please do not trade based on it, it can hurt you bad.
You can open a small cash account and trade options like Roy, Although he has decided to stop trading them also.
I do not blame him he has moved to higher beta stocks.
I might used that.
I sold IWM April 65 calls for 13 % profit.
Sold April 44 calls for 10 % but bought again at 80 Cents.
It was a roller coaster day.
Ford sucks, when big funds sells that what happen.
Roy,
Good after noon, I do like logic in trading one issue.
I have not checked RIMM chart and TA so I do not know about decline.
Paul success is a good example, but managing risk is important thing.
Not enough can be said about that. Every one can make money if he know money management.
I am still in my calls.
Farooq
Roy,
First good Job, congratulation on good trade.
CBOE data @ 12:36 PM showing
44 Puts 45301
45 Puts 62057
April 42 have 105340 so Bias is bullish IMOP.
What you was thinking?
Farooq
I took a position in QQQQ April 44 call at 85 and 86 Cents.
I do not want to use margin so decided to use options.
I will not get same return but buying common on 4X is risky.
Position is big. My stop is 70 Cents.
Input welcome.
Long UWM @ 44.00 missed low it was fast.
I am 2X and thinking to become 1 X. If I can evaluate risk I can take bigger risk and position.
Sold 1/2 position 45.49. Do not want margin call now I can hold till 42.51 without loss for day.
I will post later, need to give attention to market.
Roy,
Sold at 68.25 near DMH point. 2X position.
Long QLD 66.30 missed UWM.
Sold QLD 66.99 for 2.19 profit.
Also Sold UWM for 45.48 for 1.98 profit. Signal on both are still long.
I may be wrong on selling it.
Roy, You are doing as usual, Great.
Fasttrade is making fast trade.
Long QLD 64.80 my stop is now 65.40. Also went long more Ford @ 5.17. Long UWM @ 43.50.
These markets are difficult to trade. F was not bought on signal I just bought it for swing trade.
Still long my April 45 calls sticking with them.
I sold UWM QLD IWM April 65 and April 44 QQQQ calls for good profit but not high of the day. I am looking forward to reload them tomorrow.
I sold them around 2:40 PM.
I followed Roy for puts and sold that one later on for 35 Cents profit. I was afraid I sold a good opportunity but when I saw all traders around me are taking profit so I decided to join them.
My April 45 calls are only carry over night.
Over all very good day.
I could not post earlier, trading was little tense today.
Happy trading.
Farooq
rayrohn,
Good job, Keep doing it.
Great W@G.
Farooq
Tina Marie,
They could be actual trades, but one could not trade From OCT 2007 too Dec 2007 in cash account or Margin account with starting balance of 2000 $.
One can not do next trade in cash account till trade is settled on 3rd day. On margin account you do three trade in a week and your account is stopped till you come up with 25,000$.
PDT requirements.
BB should make it clear for people that this is just a tracking portfolio.
I do appreciate your effort. My fist posting was not the right way to ask so I edited it.
Happy trading.
I am new to your board, I like what I saw but I am wondering how you can avoid PDT label on these trades?
Which broker allow you to trade like that with 2000 $ Account?
Or all these trades are hypothetical?
Farooq
Zeev RIP,
Dr.Zeev will be missed by all.
My condolences to his family.
Farooq
Paul,
Zeev was person of intellect and intelligence, I never talked with him on the board but I liked his trading style.
My condolences to his family. RIP, Dr. Zeev will be missed.
Farooq
Dear Board members,
I am not posting my signals because you know I am long and I do not want to sell them by looking intra day signal.
I have this bad habit of selling good positions early.
I am long UWM, QLD, IWM April 65 calls, QQQQ April 44 calls and QQQQ April 45 calls.
Happy trading and stay happy.
Farooq
SmallCapFundNYC,
Thanks for advice, but No thanks.
I hope you understand board heading.
Happy trading your small cap.
Farooq
W@G2 QQQQ 03/12/08 for a 03/14/08 close
43.50 Farooq
43.41 frenchee
43.00 dr_sean
42.88 blasher
40.05 SmallCapFundNYC
Dave,
You need to register with IRS as trader,and you do not need to file Sch D it will be Sch C and 2 lines there.
Total sells - Total buy = (Profit or loss).
Remaining marked to market at the end of the year. I close year with Zero stocks and options usually so no worry there.
Catch is they are all short term gains. So higher taxes and part of SS is also paid.
Keep a separate bank account, credit card and every thing you spend on trading is deductible.
Futures have lower tax rate, I do not remember the formula but it is ST and LT mixed.
I do trade them but yesterday I got scared, the risk management is bit difficult. I am getting old for those.
Happy trading.
Roy,
I do think options are better then futures.
I am long IWM April 65 calls from 2.80 I forgot to post, holding over night.
Long QLD and UWM and April 44 QQQQ calls carrying for tomorrow.
April 45 calls are in portfolio also.
Farooq
smartone,
Ninja is a private BB forum, on World crossing.
World crossing has recently has problem with Internet so I started this board so active trader can be in touch.
To join Ninja some one has to invite you. It is a invitation only forum. I am new there, I think last member. I joined them about a year ago.
Most of us who trade are posting here so I think you are not missing much.
Farooq
Roy,
Sorry for delay, I do not want to watch market, I am afraid I will sell prematurely. ): I am long from yesterday, when I was feeling real bad.
I am going on Ninja now. I am glad SPX did what I wrote and hope we all will make few bucks.
Dave,
If you think QID is not going down why not buy QLD?
Farooq
Dave,
I think I should keep some secrets in my sleeves, LOL.
Well look at QID chart see what you project? Then I will tell how I came up with 65 $.
We have pretty good chance to test 1420 area on SPX in next 2 months before testing 1222 again.
I was really scared yesterday and I mentioned I am avoiding margin. I was hoping there will be some buying but when it failed I realize market is on extreme pessimism.
On monthly chart of SPX we retraced to about 38 %, SO here is logical point to move up.
Right now we are in process of testing 1287 area on SPX again IMOP.
I am very much interested what board think about it.
TIA.
Farooq
Paul,
I agree with you, Public can not support market and seems like institution have no money to buy it.
Seller short it and cover when stops taken out and short again.
System on long side has no traction in last few days.
Problem is at this level shorting 4 X can really ruin one's balance sheet fast.
I am trading 1X in QLD, QID, and 1 X in UWM in swing account, protecting capital should be most important thing for traders.
I think it is OK not to write OT as long it is about index (any index) trading but do what ever makes you comfortable.
Thanks for contributing.
Dave,
Looks like now your exit was premature. LOL ):
Good job I am still long Some QID, My work is showing now it has chance of reaching to 65, May be this is last indicator for bulls. ):
Sold QLD for 40 Cents profit, Even at extremely over sold level it could not generate any traction, holding UWM.
I am shaky on that one also.
Buyer's are on strike and supply is overwhelming.
I may be exiting from great opportunity but I would like to take a second look before committing.
One can be biased when he is in a position.
Happy trading.
Last post on signal for today, signal is still long on CCI and short on RSI 5 min chart long on MACD.
I am long UWM @ 42.51 in swing account 2.5 % is stop loss.
1/2 position on QLD 63.11. 1/2 position at 62.88, now this is 1X position. QLD is in trading account.
Happy trading.
Stopped out on UWM and QLD for minor profit. Feel lucky, I was out with friend and came back glad used stops. commissions + few Cents.
Market is testing important resistance so I am side line UWM is not very liquid so now I will take signal only on 30 Min charts.
I do want to buy it for swing trade I am eying to buy it @ 42.60 area in swing account.
Citi is at attractive level, any opinion?
Happy trading.
Next option Expiration is on Thursday, as far as I know.
Dave,
I think you may be right but I use that criteria in swing account.
Multi year investments are hard to time.
Now in Ford situation around 7 $ was multi year base, it has broken because insurance companies and big hedge funds needs cash and they are selling every thing for what ever they can get.
So when supply is more price projection becomes difficult.
I am buying more of Ford because I see value there. On FA it is great buy, On TA signal will be issued around 10 at that time I hope to be ahead by 80%. I will try to write more.
I was long QID 55.40 which is sold 55.90, I am long Now UWM from 43.75 I am long QLD from 64.90.
Happy trading.
frenchee
Great job, Keep going.
Farooq
Bob257,
Thank you for kind words.
I am still a student of markets.
Farooq
Ollie,
You write beautiful and I am a lousy writer in English as you probably already know it. I like to write more but I am limited to 15 post a day here.
So I use them bit carefully for signal posting purpose.
I am a free loader here but I might have to go for paid subscription.
I just do not want to be addicted.
I will write more on Ninja.
I started this board for exchange of Ideas with friends for pre-opening and when NJ is not available. I have benefited from it I hope others have also.
Please write more it is a fresh breeze.
We have very good people here, they all love to share and will enjoy your writing.
Have great trip on skying.
Trade for happiness.
Farooq
__1Best_,
One is more Scary then others.
Sorry for late response, I am busy with kids, they are here for spring break.
The market on technical grounds look more ugly, What are your views?
TIA.
I think for a short time frame we have got all decline we could, We will try it Monday again but will fail, I hope to see 44 in coming weeks.
My hourly Chart:
Here is my long term view:
http://stockcharts.com/h-sc/ui
It does not mean we could not drop more but at these levels market usually pause more.
Indicators are reset before going on fundamentals underneath.
Fed cut up to 25 basis point will bring a rally, initial response will be sell off but then will move up.
50 points cut will keep me on bearish side on fundamental basis.
I will stay long QLD and UWM in my swing account and will establish my position on Monday.
I have no equities position in my trading account I have some calls April 44 QQQQ long which I am carrying over weekend.
I was away from my desk so fail to take advantage of QID run. I am still long QID in my swing account.
I usually do no post my swing trades on this board because most people are interested in day trading Ideas but if it is of any help I will post my swing trades also.
I am down big time on my long term trade, They are F (Ford Motor) but that is for 10 year hold, Second is RAD (Rite aid) that is also down but has similar time frame.
Total loss on both stand about 100,000 $ They are in cash account. I do not use stop loss on long term investments. Bad Idea?
I wrote about my losses and trades which look stupid at this time, because I am human being and go through rough times like any body else.
My all trades are not winners so always do your home work and go with your heart. If you are not not happy with trade think why you are not happy and see what you can do about it.
See if you bought on fundamentals then they are same or deteriorated and if you bought on TA then they are same or going against your thinking.
Please do not make day trade to swing trade and swing to long term trade. They will destroy you.
Take action do not freeze.
I want to write more some time soon.
Happy trading and best of happiness.
Farooq
W@G1 QQQQ 03/10/08 for a 03/12/08 close
40.54 frenchee
43.43 blasher
43.14 Farooq
Dave,
I bought that position on RSI and RSI was giving a premature sell at that time.
I can say premature after the fact, yes CCI was not confirming sell, but slopped down ward.
It just came back touched signal line on CCI and went back.
I missed to buy at 54.80. I was writing this post.
Taking profit is not bad.
I think couple of day back and forth and then we will move to 100 point SPX rally.
I got better price on QID 54.15 second time, now just focusing on it. Hoping for 55 and signal.
Edit: Sold QID for 54.90 for 75 Cents profit.
Long QID 54.45 on cross of S1 RSI signal long CCI green but signal not long yet.
Long TWM at 89.35 same situation here.
They have move up from my entry s stop is BE at this time,
TWM could be sold for 91 area.
Edit: QID sold for 54.77 for 32 Cents profit, and TWM for 90.50 for 1.35 profit.