Tuesday, June 1, 2010

Monthly Goals for June

Wow did May go by very quickly for me. Seems like I was just listing my goals for May. Needless to say I didn't achieve them all, but I did spend a good deal of time on them and I learned a lot in May. Below are my goals for June.

  • Use paper trade account to create a diversified options strategy portfolio. This will entail purposely setting up some trades with  positive and negative vega, and some trades with positive and negative delta. The goal is to diversify the basket of holdings so that your cumulative greeks aren't lopsided in any one direction. This reduces the need to significantly hedge your portfolio as its construction has a bit of a built in hedge. Once created, follow each trade individually and the portfolio as a whole to see if any positions need to be adjusted, exited, or hedged. This whole process is to familiarize myself with movement in the greeks and how they affect your holdings.
  • Spend some more time on the TOS platform to get familiar with their analytical tools.
  • Books to read: The Option Trader's Workbook, Fibonacci Analysis, and I've got a few on technical analysis.
  • Practice charting and using this as an input for trade selection
  • Create a formal watch list 
  • Continue to build a spreadsheet with past trades going back to mid 2008. The purpose of this is to see  my win/loss ratio, avg win/loss, total profit, and see if there are any patterns or information I can use going forward to make future trade decisions.

1 comment:

  1. Like I mentioned on the phone the other day. I think you have found much clarity in the past month.

    Next time we meet I would love to here a little more on goal number 1.

    Keep it up!