I entered DRIC as a bearish position. My account has taken a beating since AMZN and AMLN earnings, so I am awaiting for the right candidate. This is a major set back, but that is to be expected when you trade in a volatile market. Patience is a virtue in such cases, and giving time to leak my wounds may be best for now.
I have been trading PCCRC's successfully, though on GOOG, AAPL and UNH. Now I have entered MER as well, since no one picked up on my challenge of selecting among 52 week high candidates.
I also like DNA and GILD as PCCRC candidates, but I am waiting for further reduction in I.V. before entering them.
7 comments:
Juan,
Is it DRIC or DRIV?
Juan,
It is DRIV, I entered the trade.
RE: "This is a major set back, but that is to be expected when you trade in a volatile market. Patience is a virtue in such cases, and giving time to leak my wounds may be best for now."
You had the portfolio up to $16,000 now it is back to $12,800. This is quite dramatic.
To be honest, I was alright until Friday, when I decided to exit a number of trades, because there had been some dramatic drops.
Juan,
A lot of your predictions are coming right. This week there have been the rises that you suggested in FDX, DNA, AVID, DNA. Plus there has been GGC.
They have moved and you have not been in them. **Smiles** Neither have I.
Why not have 5% of the account in each of the trade and have 10-12 trades going on?
You would have to do this if your account was a $1 million. So why not try it when there is not so much to lose. Also have a set money target on winning and losing.
Just some thoughts.
Best Wishes.
Remember, I have other accounts. I have PCCRC's on AAPL, GOOG, UNH and now MER too!
You can have 10 positions at one time, that is a lot to keep track of.
If I had $1M, I don't know that I would like to hold option positions of $100.000 each. In fact, I am struggling with $3K-$5K positions. With PCCRC's I can do $20K positions within my comfort zone.
Now remember, I started the challenge to show that you can grow a $11K account. We will do that. However, I need time to examine my actions. The majority of the selected stocks have gone in the right direction. Obviously, sometimes that is not enough. We keep on building our experience and hopefully our profits.
Yes the stock is DRIV.
BTW, I am not going to atempt to sugar coat it here. We were doing very well and the AMLN and AMZN reported earnings and I was caught badly. The lesson here is to keep informed on the earnings of each position you have, and exit the trade before earnings. You can reenter AFTER the reaction is observed. I did prepare for AMZN, but not enough. For AMLN I was caught by surprise.
At the high, my portfolio was $16,000 but only briefly. It is wise know that even outside of earnings season, a company may pre-announce an earnings short-fall and you wake up with a big loss. PCCRC's protect you against that (somewhat) but CRC's don't have a built in safety valve. The only approach is to keep every individual trade within a manageable amount.
Still, if the account is small (>$20,000), it would not make sense to do a PCCRC alone.
I have several alerts in Optionsxpress for pull back in stocks I want to reenter, I will keep you posted. I have $8000 in cash in the account, so we'll see how it goes.
If anyone knows how to get alerts for earnings reports on stocks in a timely fashion, please let me know.
For those of us you use Macintosh, iCal can be set to remind us of earnings dates. I know Yahoo has something like that, but I don't know how timely they are.
Juan
Juan,
Importantly though, is that you are ahead, even after these setbacks. That is what intrigues me.
I exited PETM today. I have also bought back for a small USD profit the position on AMZN, which I should not have bought, when it came down. I should have exited when you did.
The losses I then sustained, unsettled me on Friday and then I exited those trades which could have seen a rise of perhaps $700 in my account. This has been an important experience and lesson learnt. You have to go through that for real to appreciate the affect.
It is the money management aspect we have to tighten up on. How much profit, how much loss. Do you restrict your profits and take small amounts or let them run. Or do you alternate between them based on overall market conditions. Again there would need to be syatematic approach to it.
Some further ramblings by me.
I am looking at RRGB retracement levels, this is either setting up for a fall or we have entered a bull run up.
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