Of course looking at the markets I could have ordered those MUCH better. That rally last week has driven my mostly put trades well into the red and most of them are expiring on Friday... we will see what this brings. Hope really has no place in the market so I will just wait and see what the numbers say.
I have consolidated all of my trading cash into one account over the break so now I can tinker with larger trades and decide how much to allocate to daytrading, momentum swing trading and trend stock trading on the fly. Currently I decided to use all spare cash for daytrading only. This week I will probably keep trades smallish... perhaps $1,000 per trade. Once we, as a group, get settled into the trading again I may ramp it up a bit more. I am aiming to be able to handle a certain number of concurrent trades and, once expiry is done with, I will apply that rule of thumb across all my option trading. I think that allowing for 20 concurrent trades in total with a 20% cash buffer should suffice.
In the future I anticipate that the cash buffer will allow me to skim profits even when I might have a poor month without directly affecting my trading power. The cash buffer may reduce during those times but the active trading capital should remain at least constant.
I don't expect that there will be a lot to talk about here for the next week so the blog will be mostly quiet. I have my plan dialed in now.
Jeff.
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