Wednesday, December 23, 2009

The BLESSING MACHINE

UNBREAKABLE RULES OF OPTIONS TRADING

I. NEVER PLACE ALL OF YOUR TRADING CAPITAL ON ONE TRADE

II. USE THE FRACTIONAL PROPORTION MODEL TO ALLOCATE FUNDS FOR EACH TRADE: 4000 AT 10%=400 MAX TRADE OR 4000
AT5%=200 FOR MAX TRADE. WHEN THE AMOUNT GOES UP
ADJUST UP; WHEN THE AMOUNT GOES DOWN ADJUST DOWN.

III. For now only buy CALLS and PUTS on the Broad Indexes SPY for now.

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