Monday, September 29, 2008

Da plan

The market action today clearly proved me wrong. Period !

Now the question is how do i exploit this opportunity. I don't trade when VIX is above 40, which is currently around 48. My trading account is fully in cash.

But this is a great time for investment or so i think. I bought a 25% position in my retirement account around SPX 1115. Will buy another 25% if we go down to SPX 1015, which is a big "IF". That would put my average position around 1165, with a stop around 950. A 10% stop. In the worst case, my investment losses would be around 5%, if i get stopped out.

That's da plan. I am in 25%. Let's see how this goes.