February 22, 2012
I've been trading & investing for 20+ years. I spent most of that 20 years helping partners make money with risk management rules, trading options as a hedge or as covered call strategies during toppy markets before all hell breaks loose.
I started with mutual funds back in the recession of 1990. I slowly got comfortable trading equities and limiting my holgings to less than 10 securities. Then I got real comfortable trading options and finding option strategies to provide some income and in some cases get me out of stocks that were trading at overvalued. I found that during three crises, SE Asian currencies in 1997, Russian default in 1998, the dotcom bust in 2000, and the real estate bust in 2007, that fundamental analysis simply did not work. This was reflected with correlations across different assets and sectors revealing that there was nowhere to hide. A healthy market has a full range of correlations between -1 and +1 and fundamental analysis is quite important. I have not seen much improvement in the way assets are moving and therefore I have maintained a more core investment approach with the additional use of technical analysis when dealing with FX, gold and high beta stocks.
FX, equities, Exchange traded options, and some leveraged ETFs for very short term opportunities.
I'd like to see what others are using for trading systems. Are they writing strategies? What data sources are good for eliminating survivor bias, statistical methods for missing data. Also, I'd like to share some of my ideas as well as learn more about futures trading.
Schwab StreetsmartEdge, FXCM Micro. I do keep a journal of trades.