December 5, 2010 Trade Update

Hi All!

There were no adjustments to any of the positions since the last update, December 1st. I did attempt to roll the 55 Day and Method 15 positions up on Friday but the prices were so unfavorable that I decided it was no worth it and stayed put. I’ll go over the positions one at a time by showing the position and then discussing a general plan.

January 55 day trade:

For those of  you who know this trade, you’ll know there are no issues right now. I am planning on adding to the trade with any further up movement. The risk plan is as follows: Planned capital – $10,000, profit target $3000, max loss $3000 . Currently the position is down $328.

December method 1:

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The risk plan is as follows: Planned capital – $4,000, profit target $800, max loss $800 . Currently the position is down $219. The plan on this trade is as follows:  For this position to be profitable RUT needs to drop under 750 sometime over the next week or so. This is very likely to happen. Right now the total risk on the position is $1090, so if I do not touch anything, I can hold this position for quite some time before max loss is hit. My plan is to stay put and see if we can get a pull back to support at around 740. If so I’ll exit the trade then.

December Method 15:

This is the position in the most trouble right now. The risk plan is as follows: Planned capital – $14,000, profit target $2800, max loss $2800. Currently the position is down $825.00. I tried to adjust this up on Friday but, as I mentioned earlier, it was not worth it so I stayed put. The plan here is to stay put on a hard pull back, roll up on a mild pull back when conditions are more favorable, and on an up move, I’ll adjust up IF the market makers will give reasonable prices or hold till 1/2 max loss $1,400 and then sacrifice this position and put the extra capital and max loss into the Dec 55 day trade.

The Dec 55 day trade:

This position is the same as the method 15 except it is down less money. The risk plan is as follows: Planned capital – $10,000, profit target $3000, max loss $3000. Currently the position is down $325.00. As with the method 15, I tried to adjust this up on Friday but it was not worth it so I stayed put. The plan here is to stay put on a hard pull back, roll up on a mild pull back when conditions are more favorable, on an up move, I’ll adjust up IF the market makers will give reasonable prices. On a hard up move I’ll close the M15 and add the capital to this trade and see what we can do to pull off a win.

OK, It’s time to start a new week! Bring it on!

Happy Trading!