Quiet Market

The market opened lower this morning only to return to its normal flattened state.  Individual stocks are only really moving based off news and earnings which makes it difficult for swing traders to really tally up big gains.  It is for this reason that I am not heavily invested.  With JCP, BAC, and FCX, I have options that will move significantly if the stocks move higher but without much risk.

Yesterday I was questioned about my assertion of not much risk.  For those of you who are curious, let me explain.  I started this this trade challenge with $3000 and have removed that investment so that I am only playing with profits.  My current account now exceeds $40,000 but in order to reach $100,000 I cannot think in these more inflated terms.  With my mentality, I simply remove a zero from the account value and trade value.  This means I am trading the same way as I was when the account was much smaller.  I look at my current account as a $4000 account.  My BAC trade where I put $5000 down on high risk options is only a $500 trade with this smaller mentality.  Essentially, with this view, I have 500 on BAC, 400 on JCP, 700 on FCX and am only 30% invested.  If you look at this relative to by trading history over the past months, you’ll see that this level of exposure is fairly conservative.

I would like to be more aggressive but when the market isn’t moving there are simply fewer opportunities.  The opportunities that are out there also don’t have the same luster as they do when the market is moving with some pace.  Conditions will change and my aggression level will change with them but for now, I have to have some small level of patience.   More to come, Jeff

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Posted on February 14, 2013, in Jeffs 3k-100k. Bookmark the permalink. Leave a comment.

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