3SOF

It looks like it's time for 3SOF to switch to options.  The main portfolio is only up 5% year-to-date, which isn't much better than the S&P 500 at 2%.  3SOF works great in a bull market, but it appears to not be so bear-proof.  This is EXACTLY the problem I had in spring 2006 when I made the switch.  I lost $10,000 out of my portfolio cuz I had the entire thing invested in the types of stocks that are on the Main Portfolio.  I've been making money consistently since then. 

I'm up about 46% year-to-date in my account, and I trade options using mostly credit spreads.  I can make a 20-25% monthly return on my money when I trade them.  I had a loss for the July expiration cycle, but that was the only losing month I had since trading credit spreads.  I was busy moving to Florida and neglecting my portfolio.  I did a bunch of bear call spreads when the market looked toppy, then most of them went against me when it turned strong bullish.  I've gotten 20-25% return the rest of the time.

Leaira

Hi Leaira,

It's great to hear success stories and I am pleased your options strategies are working for you right now.

The 3SoF portfolio has dramatically outperformed the S&P and any major index you can think of since it's inception and that really is the key, long term portfolio performance. The fact that it is in a period of drawdown right now is just a normal part of any trading strategy. You have to remember that the 3SoF portfolio is just one approach using a certain type of risk / position size model. No approach makes money ALL the time.

Options are a great vehicle with the correct money management approach  (sounds like you have that in place). Why don't you share your credit spread strategy so members can see how they are constructed and what they offer. I am sure there would be many interested readers.

Good trading

Lieara - I would like to hear about your spread ideas. I understand cerdit spreads, just trying to hunt up where i can get some good ideas.
Tony G

Hi Leaira:

My name is Terina; my name is also unusual--but I think both our names are pretty.  I don't know if you remember, but my husband Marshall has breifly and recently chatted with you and your brother Jordan on the bettertrades online classes.  We have a 17 year old daughter named Amber that my husband was telling you about; we're trying to get her started trading.  My husband and I are just getting started ourselves.  We have been practice trading for a while now.  When I saw your interview with 3sof, I was very inspired and I showed my husband; We thought, " if this young lady is doing this, our Amber could do it too.  She is a high school senior this year and has been giving us money to put in the market for her; I want her to learn how to do it herself; so we're encouraging her to practice trade first of course. 

Meanwhile, my husband and I have just started putting real money in; we're starting with just $1000 like you did; hoping, praying and working for much success; if you have any advice you could give to us, by all means, please don't hesitate to give it.  It would be greatly appreciated; I took the time to read most all of your posts; I wanted to see if there was anything I could learn from your experience.  Hopefully you'll keep in touch.  We wish you the very best; God bless you and your brother; We know you'll both do well; by the way, I just registered for this forum, so I'm a newbie to 3sof.  Is Barchart.com still a good place to find candidates?  I'm looking at the top 100 and trying to see which are optionable (we do mostly options, however, if stocks are better in some cases, we are willing to do whatever it takes to obtain more capital as quickly as possible, so we can really trade the way we'd like).  We are pretty conservative and try to limit risk as much as we can; We've already taken the Market Essentials class from Bettertrades; just simply trying to build capital at this point.  Would love to hear your thoughts.  Thanks a bunch.

Sincerely,
Musical (Terina)