DOW is at 3-month low.

admin — Sat, 21 Jun 2008 06:14:59 +0000

Finally, my patience paid off. The Dow Jones Industrial Average fell today another few hundred points and I got out of DOG (at $65.30) and +VIXGD (at $4.20) just in time to pack our luggage for the trip.

Trading is not an easy thing. Even though I let myself to go away from the computer screen for hours, even days, I am always evaluating the probability of making / losing a lot of money. When volatility of my portfolio is high, I stick around my trading platform; when it is comfortably low, I let myself to concentrate on the previously neglected stuff.

In my opinion, there are just three rules to be a successful trader:

Not being greedy.
Thinking ahead.
Keeping your words (have discipline).

I’ll elaborate on it after I come back from Europe.

Buying NMX at $85 could have been an awesome trade!

admin — Wed, 18 Jun 2008 06:40:14 +0000

If I wouldn’t have sold it too early.

Yep, I got out of NMX yesterday (Monday, June 16th) at $88.17. Today it traded as high as $93.64. Oh, well. I made an easy 3 bucks per share, but left over $5 per share on the table.

In choosing between taking profit on long DOG or long NMX positions (which have somewhat negative correlation), I chose Nymex and it was a mistake. Not because I didn’t get out from DOG, because I didn’t keep both! Mathematics doesn’t work perfectly in the real market and so correlation. Today both positions went up! Dow Jones Average Index fell 108 points (which is great for DOG), but NMX actually gained $2.87.

In any case, the daily balance of my portfolio is at a new high, so I am not complaining.

NMX – Nymex Holdings Inc.

DOG – Short Dow30 ProShares.

Trading Mom » dow jones

DOW is at 3-month low.

Buying NMX at $85 could have been an awesome trade!