My Life My Trade

BOT @ $1.00 – 15% profit

UPDATE 2:45PM PT: Boy I am going to stop trading FAS and FAZ. I never get this one right. The other day I sold for break-even and the next two days this thing put on 10%. Today I was playing downside, I get out and this thing goes on to lose another buck. I am staying the hell out of this.

Currency action not looking good. Opened this trade yesterday. Out for a $0.03 gain, which covers the commissions as well.

Capital preservation is the name of the game.

Yes, it might go higher. But at this point my premise for entering the trade has been violated – currency action (See the 8:00AM ET update in this post) suggesting very limited to no upside to equities. It is better to stay out and preserve capital if you want to survive in this game.

I also have URE that I am holding onto. Essentially cutting down my long exposure at this point.

EDIT 8:38AM ET: Well, the job report is being greeted positively by the market and FAS is up to $8.75 as I type, up 9 cents from where I sold it. I am not bothered by this because I did not lose money on this trade. Essentially, my premise to enter the trade got violated and I got out – that is how it should be if you want to survive in this game

Warren Buffet says that there are two most basic rules of investing

• Do not lose money
• Do not forget the first rule

A question that might occur in your minds is that why did I not close out the URE trade as well OR if I just wanted to cut my exposure into half, I could have sold half of my URE and half of my FAS position. Well, the answer to that is that for URE trade, I had other technical reasons besides just currency action. For FAS trade, it was purely based on currency action.

Again, if something doesn’t seem right AND there is a doubt, stay out OR if you are already in, get out with minimal damage.

Position size not specified

Stop contingent on $RIFIN < 609