Satuki @ Home

I took only one trade in SRS today, which is an inverse ETF that corresponds to twice (200%) the inverse of the daily performance of the Dow Jones U.S. Real Estate Index.   In other words, I shorted the market by going long on SRS today.

Reflecting back on the trades I took yesterday, I think I was a bit slow to cut the losers , which resulted in a big loss of 1300.  Nevertheless, the trade I took today was impeccable as you can see from my portfolio.  I thought about buying only 300 shares of SRS today because I talked about my position size being too big yesterday on the mailing list.  But I changed my mind and bought 650 shares.  This was still a bit smaller than what I had yesterday since SRS is a double leveraged ETF unlike the triple leveraged FAZ.   The reason I bought 650 shares is because I should be somewhat consistent in my position size.  And I normally increase my position size slightly when I have a few losers in a row.  Some people might frown upon this strategy.  I wrote another post the other day to explain why this makes sense.

Here is the chart.  You can also see the timeline on http://www.stocktwits.com/u/trader_mom

Here are a few good things about this trade

1: I did not try to catch the bottom.
2: I did not second guess myself.
3: I used the same position size as I did yesterday.
4: I held onto it until the market close as I did yesterday.

All these are attributed to a well prepared trading plan.  So I do not second guess myself or panic over the unexpected.  SRS can stop me out a few times.  But when it moves, I will have to make sure I am on it.  That is one of my missions.  The other is that I will try my best to reduce the number of times that SRS (any stock) shakes me out before it moves

BTW, I chose SRS over FAZ today just because I prefer high priced stocks.  I hope you did well today.