http://www.stockrake.com

For the last 8 months you probably haven’t noticed that my trading consistency has gotten much better.

From my absolute fuck ups in 2008, to my current streak of “good trading” I’m proud to say that my index trading account is back to being up for the year. With the 2008 and the beginning of 2009 screw ups I had a -43% hole to climb out of. This required a huge comeback. Since March 1st my index trading is up more than 50%. Now remember there are bears out there who have missed this. In fact churning their accounts and reversing their gains made from the 2008 drop. All told, I’m up 7% for the year now.

My index trading will never go back to the way it used to be. At the lows of my account (Feb 28th 2009), I was working very hard, on my mental side of trading. I now think getting a grip on the mental side of trading is probably 70% of any person’s success. I realized that I was consistently ignoring things I trust and understand and then throw all that out the window and take trades based on esoteric bullshit. What esoteric bullshit you say? It might be Elliot Wave, Newsbits, other bloggers, etc. The problem is that I might read some noise the night before and then act on that noise the day after and remained trap to that bias for a number of days beyond. Then the noise roller coaster takes over. All the while you miss opportunity and lose sight of what is happening. This is why I am so against noise and bullshit. Like I’ve said before, I might sound like noise as well to you. If that is the case don’t read this blog. It will make you a better trader to ignore me, but make sure you ignore the other stuff too. I have changed the way I think.

The same screw ups also applied to my trading accounts as well and they are also up roughly 50% off their account lows.

Now the reason I even mention this is from this point forward this is the expectations I have for yearly performance without the stupid zombie trades where I’ve been caught in a depressed state and didn’t take action. If I had listened and followed my own trading methods I would have gained the -43% instead of lost it. If you add that to the 50% (not including what it really would be with compounding) and you get 93% return trading only the 2x index funds.

Things that worked today:
-BAC calls sold them for 2%
-UNH Nov 25 calls 10%, 10%
-UNH Nov 27 calls 12.5, 6%
These UNH calls exploded this morning and I didn’t take advantage of it. I could have. I should have. However, I know this and the other insurance stocks are ready for a larger bounce than today’s move so I sat tight.
-Being long the NDX, SPX, RUT for an average gain of 1.5% Now 100% cash here.

Things that didn’t:
VG was sold for 4% loss

Things I bought today:
-AET Nov 27 calls (I said I was going back in) Also WLP calls exploded today I think there is more to come in this whole sector.
-EWZ Nov 70 puts
-XRT Nov 34 puts
-SRS Nov 11 calls

I didn’t get the TM calls again, I wanted to wait one more day. I also did not short the indexes, but I will be shorting them if Monday is up.

I’ll have another post up soon about some shorts and longs I’m eyeing.

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