Comments: Yesterday's surprisingly bullish action made me try to discern a more optimistic reading of the HUI chart. One possibility is a triple bottom formation. But it seems a little unlikely since that is a strongly bullish formation, and I don't think at this time the fundamentals support such a strongly bullish interpretation. Having said that, charts can sometimes anticipate incipient emerging fundamentals, so the fundamentals don't necessarily need to be all in place to support the bullish reading. Nevertheless, I remain a bit skeptical, though I am now back in the precious metals.
PM Portfolio Exposure: 95% + 5% short S&P 500 + QQQQ Puts (so far, no luck with the puts, but the downtrend resistance point at around 42.70, appears to be very close now...)
Sentiment: Cautiously bullish.
Gain/Loss for the Week: +3.4% (my loss for last week was -5.6%, I think I didn't note it because I was busy).
By the way, today marks the 1 year anniversary since I devoted myself full time to trading Gold stocks. My result for the year is +29%, which is decent, but saddening to me because only a few weeks ago I was contemplating chasing the 100% annual gain mark. What makes it worse is that I am now carrying some options losses which has cut deeply into my trading portfolio gains--though in all honestly, the options trading has been more of an experiment. Anyway, I will need to concentrate more to make some good headway in the coming weeks. I'd like to get back to breakeven in options and get my betting average above 50% gains in PMs in my trading portfolio. Those are my immediate goals. One possibility would be simply giving up on options--I feel the risk/gain ratio isn't as good in options and doesn't fit my swing trading style as well as regular trading. But I'm not yet ready to give up on options entirely--they let me go short with puts, which I can't do with my regular trading account which isn't permitted to carry margin. We'll see...
2 comments:
I no longer use options but prefer to short with a short margin account - risking no more than a 0.1% loss on a trade in relation to my total portfolio. Have you looked at your exit rules or position sizing to reduce losses? I had sold all my pm stocks after the September fakeout but back in 85% on Friday + 10% energy stocks (Friday also).
I have a bit of a dilemma. I use Fidelity Active Trader for trading and they have great trading software to which I have gotten really used to. Problem is that Fidelity doesn't let me use margin because my address is outside of the States. So I also use Firstrade.com where I have a small account for options. There I can use margin, but their software is not as good. When I want to go short, I do puts through that account. But Puts have poor liquidity and bad bid/ask spreads, so it hurts me. I want to use the software of Fidelity with the margin of Firstrade, but can't combine the two in one account.
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