Wednesday, April 20, 2011

4/20 Daily Summary

Wow! I confess I had to do a double-check on the market price when I saw this huge spike to the up-side. I wonder how this would affect any trader in a butterfly position on the NDX.. Hopefully the butterfly trader would have cashed out prior to this spike based on the quiet action in the past several days.

I'm basically just watching and reading, not doing any extra trading. Not taking any breakout on the IBD 50 unless they get convinced we're back in an up-trend.


LJF said...

Are you done with butterflies? I see you referenced the Dan Sheridan course. Im thinking about taking it. Im assuming you took it, would you recommend it? Are his former students profitable? Do his methods work?

Gustavo's Trades said...

Hi there, I'm taking a long break from the butterflies, simply because I don't have the time in the evenings to watch and plan my adjustments like I used to. With our new baby me and my wife have to take turns with child logistics, perhaps once we settle on our new routine I may pick them back up.

For now I'm using very simple cash-secured puts and covered call strategies just to keep my capital active and earning returns on a monthly basis. These are much more of a longer term strategies and they require less maintenance.

As for Dan's course, I think the answer to your question is 99% dependent on the student. If you apply yourself, control your capital and manage your risk (with stop loss) you can and will be successful. From my own experience I got into the groove once I stopped switching strategies and focused on the butterflies. I did find the learning curve challenging.

As far as other students and their methods, yes, there are successful students in the community and I get a lot of value from listening to their calls and web-ex archives.