mysidetrades: December 2012

Sunday, December 30, 2012

Small bet for 'January Effect' Rally (IRDM)

Perhaps clearing 6.50 would be a good clue that stock found its bottom and going higher.

Sunday, December 23, 2012

Bullish Case -- HSII & FN Jan Calls on pull-back

Wednesday, December 19, 2012

GOLD in trouble?! [SHORT idea]

I hate GUNS

It certainly makes more sense to talk about economical rights (i.e. people rights to employment, education, shelter, health care) Not bearing Arms.

Tuesday, December 18, 2012

Saturday, December 15, 2012

Airline ETF (FAA) is flying high

FAA options are Not trading , better look for individuals like Southwest Airline (LUV).
LUV Jan 10 Calls is 0.40!

Thursday, December 13, 2012

Looking into Buying Calls on Merck (MRK)

Big Pharma been on the move to higher grounds for a while, I want to play this for short term, MRK Call options very active yesterday.

MRK Jan 19 2013 30.0 Call	MRK	Call	30.00	990,999	15,941
MRK Jan 19 2013 40.0 Call	MRK	Call	40.00	635,204	25,301
MRK Jan 18 2014 35.0 Call	MRK	Call	35.00	142,716	9,363

MRK Jan 19 2013 41.0 Call	MRK	Call	41.00	67,185	6,115

PFE Or some ETF in this area may be good

as well.

Sunday, December 9, 2012

More hopes in Gaming and Multimedia software companies

Although sold my Game Boy calls to early , I am looking for more opportunities in multimedia and gaming companies for Christmas season. Beside GME I am also bullish on Electronic Arts (EA) and Take-Two Interactive software (TTWO).

Thursday, December 6, 2012

Financials took the market higher (maybe more potential)

Citi (C) and Bank of America (BAC) performed very well today
Look into buying calls in FAS or JPM.

My trading rules:

Here are a few trading rules that I found working for me over the past 15 years.
A. Try to follow the steps of the elephants (i.e. big mutual funds and institutions).
B. Its not my goal to predict the bottom for a falling stock or hoping to sell at the top.
C. I will be happy to pick the right stock, make a trade in the right direction, and take profit.
D. Always look for shorting opportunities in the market. Fear is a powerful emotion which can drive the stock price to lower levels.
E. Do not see how one can survive without buying puts to protect against bad market. (well If you have short positions a falling market is a good market).
F. Try to allocate not more than 20% of my trading budget for each trade. Always have 15-20% cash and survive my bad decisions and losing trades.
G. Not in love with particular stock or industry group.
H. Always on the hunt for opportunities in the entire equity market.
I. Step away from battle field. Avoid trading one week before and after earning announcement. Digest earning calls and company announcement before getting into it. When you gamble , the house always wins and you lose.
J. Rapid fire moment, does not lend itself to smart thinking.
K. Pressure is mother-of-all bad decisions, don't pressure yourself.
L. Never kick yourself for taking profit.
M. A money management tip: You get out, when getting is good, before you blow yourself up.
N. Its Ok to take a pass on a trade, listen to your inner Clint Eastwood, "Man got to know his limitations."
O. Assess your down-side before entering a trade, not your upside.
P. Always have 10% of your portfolio in cash, and consider yourself fully vested, if you are below 10%. Need to sell some positions to raise cash.
Q. Have a list of good stocks to buy from, look for pullback and be patient. Not having a list to pick from, is a good indication that you have not done your homework.
R. Refrain from trading on a volatile day, let the dust settle, and let the amateurs play. Enter a position when more odds in your favor. Playing earnings is a dangerous way to gamble.

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