Trading in Luxury

update on vol switch trade

the signal had been short vol with caution, on Mon Jan 8, signal switched to long vol
and we went to cash, selling 12 shares of XIV for $144.33 ea, total $1,731.96
signal is still long vol as of Fri Feb 2

account starting value, $502.90 jan, 2017
 
1. Shut out the noise and get focused. Avoid "Story
stocks" and trade using current objective market
trends and patterns.
2. Follow the leaders – traders who actually use
their own strategies, and created their instruction
based on real trading experience.
3. Learn first, trade second. Complete the training for
any strategy BEFORE you use it.
4. Be more concerned about the probability of a
trade being successful, than you are about the
“upside and downside”.
5. Don't buy into ridiculous hype. Trading success is
about risk management, not shooting for the moon.
6. Think about Strategy Allocation, not Asset Allocation.
 
watch 52 wk high/low stocks each day (not breath but actual number) when the number of 52 wk lows reaches over 40 per-day, portfolio managers are scuttling the weak illiquid stocks issues they own.

warn against Tier 3 stocks here as it's not their time.

In Jan. the 52 wk low stocks were running 7-8 a day (very strong) since Feb. that number is 80 plus a day. Market is "de-risking" fast.
 
took a paper trade on AAPL using Heikin-Ashi candles as the trigger,
expected to be in trade for less than 2 weeks, so went with 1 month option,
AAPL was trading around $162, between available strikes at 160 and 165, so went otm,

Feb 12, bto Mar16 165 call, $3.75
Feb 16, stc Mar16 165 call, $10.00
 
WMT after a big e/r drop, like to check back for clues, H-K candles would have you out on 1/31 @ $108,
no re entry since then, also seasonality for Feb not good
 
took a paper trade on BABA using Heikin-Ashi candles as the trigger,
expected to be in trade for less than 2 weeks, so went with 1 month option,
BABA was trading around $177, between the available main strikes with good open interest at 175 and 180, so went otm,

Feb 12, bto Mar16 180 call, $5.90
Feb 16, stc Mar16 180 call, $10.00
 
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