Taking 320K to 3.5million by Year End 2009

NoDoji · Oct 11, 2009

Quote from JAP:

Nice recovery there Neke.

My advice... quit now while you're up 200K.

Here's what guys were posting on Neke's journal last Oct after his +$57,000 week:

"Remember last year when you were at this point and then lost all of the gains in just a few weeks."

"Impressive, but 20% in a week? Slow down bud! You obviously have to skills, but it would be a shame for you to rush into things and then end up taking unnecessary draw downs."

"Remember, it's a marathon, not a sprint."

Neke was very careful after that and followed up by gaining +$138,000 the following week.

neke · Oct 11, 2009

Quote from NoDoji:

Awesome, Neke! You got to this point because you had a severe drawdown and had to rethink your strategies and risk management. You can double your account again by adhering to the same processes that got you here. No matter how much buffer you have, protect it, keep taking only the very best setups and be careful on exp Friday!

Thanks for mentioning it: I am on a double alert for expiration Friday. I know what happened to me on GOOG call last month, and ISRG put about this time last year.

neke · Oct 11, 2009

Quote from NoDoji:

Engine, he's coming into his biggest week ever: middle of last October he had a $138K week

Thats right. Those were the crazy market days of last year. Had my best single gain (103K) and worst loss (88K) on a trade the same week.

neke · Oct 11, 2009

Quote from ang_99:

neke, what are you doing different during this uptrend in your p/l as opposed to what you were doing during the draw down?

It's hard to nail down, but I will try:

1) Was too bearish in the Mar - Jun timeframe, fighting against the market that did not want to retrace. Lost a lot then. Now the market is more mature, so overbought conditions could get a retracement.
2) My undisciplined averaging down led to some serious leverage damage. Yes, I still do average down, but I do it more intelligently, with better price spacing. Previously if I bought BIDU at say 410 on a fade, and goes to 409.50 I could be averaging already (unwilling to see a loss). Now I realise that given the stock's volalitility, a 50c move is not worth adding extra. Before I add extra it must have moved sufficiently in price within a given time-frame. Not saying that averaging down is good, just a way to mitigate potential damage. Along the same line, I am learning to better let my profits run, not just my losses! One tendency I had was buy at say 20, average at 19, and then close it once it gets to 19.50, relieved to have broken even. That eventually seems like cuttings your gains, and riding the losers.

lojze · Oct 12, 2009

Quote from neke:

Thanks for mentioning it: I am on a double alert for expiration Friday. I know what happened to me on GOOG call last month, and ISRG put about this time last year.

Neke,

what exactly was wrong with GOOG and ISRG in both timeframes?

HeSaidSheSaid · Oct 12, 2009

neke - just for my edu, would you go over again on how the BIDU options trade made profit (BPJVB)? I think it was a long put trade? for the strike price of 410, but during that day (Oct 8 or later), BIDU never dropped down below 412, and the premium was $8.54 I believe.

Thanks

neke · Oct 13, 2009

Quote from HeSaidSheSaid:

neke - just for my edu, would you go over again on how the BIDU options trade made profit (BPJVB)? I think it was a long put trade? for the strike price of 410, but during that day (Oct 8 or later), BIDU never dropped down below 412, and the premium was $8.54 I believe.

Thanks

You know ithe option does not have to be in the money to have value? That is the time-value of the option. Bought when BIDu spiked above 418 (put was then about 8.50), and sold when BIDU came below 414. By then the put was 10.50. Hope this helps. I believe you can find more in the options forum.

HeSaidSheSaid · Oct 13, 2009

thanks.

I noticed the volume of puts on the trade was quite low. I assume you haven't had problem to get out of your positions for this type of trade? (like trading a low-volume stock).

FXSnipe · Oct 16, 2009

Awesome way to go Neke! I must say that trading at this level requires "balls of steel". I am curious as to what you have done to reach at this level where you are bale to handle larger sizes and what advice would you give to someone like me who is still traidng a very small account aspiring to reach your level

Got big respect for you!

NoDoji · Oct 16, 2009

Quote from FXSnipe:

Awesome way to go Neke! I must say that trading at this level requires "balls of steel". I am curious as to what you have done to reach at this level where you are bale to handle larger sizes and what advice would you give to someone like me who is still traidng a very small account aspiring to reach your level

Got big respect for you!

Check his journal when he had a much smaller account: http://www.elitetrader.com/vb/showthread.php?s=&threadid=87977