Yep. Are my losses restricted even tighter than normal now? YEP. This market is crazy right now. It doesn’t take much to make it move drastically overnight. And in the morning, it’s the little traders getting stop losses blown. At this point, I’m stuck in a few positions that I was selling covered calls against, but now premium is so low I’m better off just waiting for the dividends. So now that fundamentals aren’t holding up, technical analysis is what I can depend on. Index futures are great because it’s sort of averaging a bunch of different stocks. One ticker can crash, but it won’t crash the index. And with micro-futures, you can minimize risk by contract size. Plus these trade 24 hours so you can wait until the action is a little slower and watch how well the charts respect the Fibonacci lines and other indicators. My wins are small, but my losses are even smaller. In addition, practice is cheap and getting to know your favorite index intimately is priceless. Trade well, friends.
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