Lumburg,

It seems like you have been really bearish on the market! I was just wondering how you are researching your picks?

Have you used TradeKing's Recognia tool for Technical Analysis? You can access this by going to Quotes + Research > Technical Analysis.

Maybe you used our Market Grader Research Reports? They are in the same section, under Research Reports.

Have you checked out our Profit and Loss Calculator for your option trades?

I would love to hear more about your methods. There are endless resources to doing "Trader's Homework" these days. As with all of our tools, they are provided to help traders make better decisions, but only each person can decide whether or not to put money at risk in the market.

--Nicole Wachs

TradeKing Staff

Commenting on Trade Notes is something that TradeKing will be doing from time to time. You may want to check out my most recent posts:

http://community.tradeking.com/members/k-man/trade_notes/3833-bought-to-open-1-qml-bv-at-0-20

Option trade discussing low delta calls

http://community.tradeking.com/members/jim-bradley/trade_notes/3825-bought-to-open-6-contracts-of-xlf-cy-at-3-55

Option trade discussing high implied volatility, vega, theta, and long call spreads

http://community.tradeking.com/members/casey/trade_notes/3594-sold-to-open-4-contracts-of-hqf-ac-at-0-85

Covered call trade discussing earnings, premium, implied volatility, and technical analysis

I've really only started using options, and I have to admit I still don't know enough to really use the tools-although I'm starting to understand the dynamics and what the underlying terminology means.  I guess I'm mainly using options to "leverage" positions that I would have taken with stocks.  Especially with my interest in shorting and the margin and risk requirements required-- it made me look into options.  I picked TradeKing for its tools and also for the commissions, both of which I thought would help me learn while trading at a level I could afford.

 As for my strategy during these volatile times, I've mainly kept a list of companies that I thought would be negatively impacted by the "subprime meltdown" (I started reading and researching around May, and I had to get a brokerage account by June), I look for who is doing better than deserved and I "bet" against them.  The main lesson I've learned so far is to believe in myself, believe in the fundamentals of my decision, and give myself time for it to play out.  At first I sold into losses, now I think about why I decided to take that position, I take a deep breath, and I buy further into it.

 Another good lesson was that taking profits is fun--you don't have to marry a position.  Vegas doesn't make their money on the odds of winning each bet, but on the odds of you actually taking your winnings off the table--which for most people is slim-to-none.  Taking profit is good.  Cash out your chips, go to the bar, rethink your position, and then return to the table with a clear head (and at least a drink in your belly to show for it all).

Thanks for giving me your perspective. I agree that taking profits off the table is a good thing. I look forward to reading more of your Trade Notes.

--Nicole Wachs

TradeKing Staff