Boy am I proud of this one!
Since Wednesday morning, not one trade has been made in the $10KP and the market droped 500 points and bounced 200 points and we gaind $118 – NOW THAT IS BALANCED!
The small virtual portfolios are an exercise in balancing because most small virtual portfolio holder can not and should not engage in the momentum trading that is required to cover. Also, index covers, by nature, take a percentage of your profits and tie up cash. That's not a cost we can generally afford to carry in a small virtual portfolio….
We don't make too many $10KP trades in a choppy market as we don't have cash for adjustments (and I work under the assumption that not everyone is up $25K and, even if they are, that's no reason to take big risks that are not appropriate for the virtual portfolio's goals). We'll see if we can get a good bottom test today, perhaps I can find a put to add but mainly we're waiting for next week as our callers' premiums start to fall apart:
