June 17, 2011

So my SPY position is below the 0 line but as I mentioned earlier I’m not going to sell it.

You have to follow that rule more literally when you’re day trading with tons of margin. I don’t believe this trade is a lost cause and I’m not in any danger of blowing my account (the way I might be if I was heavily leveraged with ES, for example).

As of close today:

SPY: -$10,170
Hedge: approx $4,830.70

The hedge lessens the loss so I’m not really down $10,000 at the moment.

June 6, 2011

So, the original base level for the fibonaccis on this trade was $129.55. But as I stated earlier, I’m not going to close out my position there.

However, it provides an important point for some of the hedging.

So with an average cost of $132.70 and a closing price of $129.01, I am currently down -$6,642 on this trade.

Here’s the math so far for the long side:

Long 200 shares SPY @ $134.22
Long 600 shares at $133.32
Long 1,000 @ $132.
Avg cost $132.70
Open P/L: -$6,642

I haven’t discussed hedging yet in this thread but I am up roughly $3,801 on my hedge, bringing the total open P/L to around -$2,841.  On May 31st I started buying SH.

The question I am now dealing with is what to do with the hedge. Keep it open? Add more? Close it out?

This is what trading is all about. Not indicators, not predicting direction, not any of the crap that the gurus try to tell you about.

Question: What do your fib gurus do in positions like this? Lie? Ignore the trades that aren’t going in their favor and supporting their MAGIC FIBONACCI TECHNIQUES? How about you guys who are paying monthly fees for their fib trading rooms? How much money are you making???

June 7, 2011

Wow, I just moved and wasn’t online for a few days or really watching the market. Five up days in a row? Really?? I should’ve closed my hedge position a few days ago. lol.

SPY: $1,674
Hedge -$422

lol, wish I had closed the hedge when it was like +$5,000.

Still not closing anything yet, but even if price keeps going up I will be profitable; the hedge will lose less than the SPY position gains.