When the markets drop day after day we have to do what we can to prevent a max loss. We all did one strategy and that was to close out our trades at risk. The other strategy that we did not do and will do in the future is invest a portion of our credits in ETF Put options. If we had done this 2 weeks ago our gains on these Puts would help offset a large portion of our losses. Buying Put options when the markets start dropping is like buying insurance. I am creating a tutorial detailing this hedging strategy and will be posting these Put trades in future months. The only folks making money in the markets now are those who shorted the indexes and this is what we will be doing from now on to protect our losses. In February I will only be trading new Bear Call trades in the beginning. I want to make sure the this market has at least started trading normally and not dropping. If it continues dropping we will be buying Puts, and or debit spreads, to short the market as well as Bear Calls.
Subscription fees collected by PayPal for January will be ((12/22/2007 - 1/18/2008) will be refunded this week. Look for emails from PayPal detailing these refunds.
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