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In a message dated 10/10/00 8:37:16 AM Eastern Daylight Time, Proffittak
writes:
<< Hello
the reason for this post is to share a losing trade so that YOU would not
make the same mistake i did.
about 10 days ago i went long 1 sp500 at 1470
and bought the 1460 Oct put at 27
the reason for going long was that the health index (frequently post by
bob r)
made a new hi
and if you remember i posted at that time to the list that i expect market
to go to a new hi
when price kept going lower i stuck to the position because in the past
4 years it took no longer then 5-10 buss days before it materilized
HOWEVER
in bear markets (which we officially in) indicators seem to leg by as
long as
1-2 month
so yesterday i close the position with a 50 points loss
and recover from the put only 21points
the lesson
A: puts should be bought at 5 points from buying price for a long position
trade
B: if 5 days goes by and you are wrong get out
c: when future drops more then 30 points put is not moving up in price
that good
d: would have been better off buying 2 puts of the 1450put
as for mkt. outlook
short term we have a bullish div on MCcllulen osc
and vol. accumulation is increasing
top should be in spz00@xxxxxxx
UNLESS we have today at least 3/1 up vol. /down vol.
ndz00 has a better top for this move@xxxx
(if up vol. /down vol. 3/1)
happy trading
Ben
>>
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From: Proffittak@xxxxxxx
Full-name: Proffittak
Message-ID: <a0.aac617c.2714677c@xxxxxxx>
Date: Tue, 10 Oct 2000 08:37:16 EDT
Subject: learn from my losing trade/sp500 nd outlook
To: realtraders@xxxxxxxxxxxxxxx
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Hello
the reason for this post is to share a losing trade so that YOU would not
make the same mistake i did.
about 10 days ago i went long 1 sp500 at 1470
and bought the 1460 Oct put at 27
the reason for going long was that the health index (frequently post by
bob r)
made a new hi
and if you remember i posted at that time to the list that i expect market
to go to a new hi
when price kept going lower i stuck to the position because in the past
4 years it took no longer then 5-10 buss days before it materilized
HOWEVER
in bear markets (which we officially in) indicators seem to leg by as
long as
1-2 month
so yesterday i close the position with a 50 points loss
and recover from the put only 21points
the lesson
A: puts should be bought at 5 points from buying price for a long position
trade
B: if 5 days goes by and you are wrong get out
c: when future drops more then 30 points put is not moving up in price
that good
d: would have been better off buying 2 puts of the 1450put
as for mkt outlook
short term we have a bullish div on MCcllulen osc
and vol. accumulation is increasing
top should be in spz00@xxxxxxx
UNLESS we have today at least 3/1 up vol. /down vol.
ndz00 has a better top for this move@xxxx
(if up vol. /down vol. 3/1)
happy trading
Ben
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