RE-FOCUSING ON DIRECTION OF TRADING STRATEGIES ( report # 29)

Report # 29

RE-FOCUSING ON CORE STRATEGIES

I'm eliminating all other trading right now and concentrating on Credit Spreads. Am also concentrating on only one BROKER, which is THINKORSWIM, as they give the detail and capability needed for trading both MONTHLY AND WEEKLY SPREADS.
a) Option House account has been raised to $20,000 for monthly spread trading, except possibly for a position directional trade in sure thing type trend starts, when the volatility is high. Though for a LOSS FREE trading system, money earner, I think I'm going to have to eliminate the taking of any position directional trades?
b) Position trading, based on market direction guessing has been terminated with my THINKORSWIM account, since that loss last week on a directional trade. There were too many losses. It works, but the results were not consistant enough. One position directional trade loss can wipe out all the accumulation of months of small steady incremental profits from spread trading, small as they are. It is more important in my mind, not to EVER have a losing trade.

My goal is as far as possible a LOSS FREE trading system. I realize this is not totally possible, but as close to it as I can get, is the goal.

For this reason, I'm concentrating on Vertical Credit Spreads, IRON Condors and IRON Butterflys. I have not even started to try, or study Butterflys yet. These three systems are CREDIT SPREAD strategy systems.

TRADES OPEN April 26th.THINKORSWIM BROKERAGE

MONTHLY Expiring third Friday in May/ 2010

1) Vertical Call Bear Spread 5 OEX 565/570 Calls @ .50 cents + $225 --results pending - trade working

2) Vertical Call Bear Spread 5 OEX 570/575 Calls @ .55 cents+ $250 --- results pending - trade working
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WEEKLY EXPIRATION April 26 - 30th/2010

1) Vertical Call Bear Spread 5 OEX 560 Call/ 565 @ .45 cents + $200 --- WIN
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2) WEEKLY TRADE - THINKORSWIM This trade was made on Wednesday morning. I attempted to put a limit order, at .10 cents, but got a FILL at .05 cents. I don't know why?
(2) Vertical Call Bear Spread 20 OEX 550/555 Calls at .05 cents Wednesday trade expiring on Friday evening. At only a (+ $100) I''m not sure what the brokerage fees and commissions will do to this? The 5 cents is too little.-- WIN! ---
Net profit: $100 - $70 commission = $30.
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I do have plans to POSITION TRADE, but only when a NEW TREND starts, at the point of highest VOLATILITY. When the meat is in the trend position trading, in the first third of the trend BEFORE volatility drops off and it no longer is practical. There are only 6 to 8 trends a year, so there are not many high quality trades otherwise, that more or less guarantee winning. That's the theory anyway. We shall see how it works out in practice.
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FOR VERTICAL CREDIT SPREAD RESULTS SEE REPORT #25

I'm studying on how much margin would be required to do a steady set of staggered, or overlapping Vertical Credit Spreads. One 5 contract Vertical Credit Spread requires $2500 in margin. So it looks like in one month, I might like to do up to 8 Vertical Credit Spreads. That would mean an account size of $20,000. If I can get a local faster internet service provider. In the meantime, will continue the practice and learning process using ThinkorSwim funny paper money account for another 6 weeks or so.