What Now?

What a day to miss out on being at my computer yesterday.  My interview went well.  I’m not sure if I’ll get an offer, but think I did the best I could.  If they don’t give me an offer then I’ll just have to believe there will be a better opportunity for me elsewhere that matches my skills set better.  I think I’d do well in this job although it would be a big challenge and my time I currently have to focus on investments would be slashed considerably until I could learn their systems and get their processes in sync with my ideas. 

If I am hired I’d still continue to save as much as possible and rely more heavily on limit orders I place on the weekends or evenings rather than during the day.  Without so much of my work day available to focus on investing (I guess like a normal employee), I would have to be bolder in my individual trades and devote a larger percentage of my holdings to each position.  As of right now my account balance is up to $68,500 and I already know I’m planning another good deposit in two weeks due to our reduced household spending with the pending lay-offs for both of us.  If my wife and I can both stay employed at close to the same salaries I see a $100,000 balance in my investing account in the not too distant future.  That’s when I’ll truly be able to see how scalable my trading model is.  It was easy to manage my account when it was under $50,000 and I’ve already seen as it increases that staying towards the 200% invested mark is harder than I thought it might be.  Part of that is due to the fact that I’ve been more timid with the size of trades I’ve made as I become adjusted to the idea of putting more than $10,000 into each position.

With options expiration only a few days away and all of my current short option positions OTM, I plan to have some good realized profits at the end of this week.  I’m not sure if I’ll trade any this week since I missed the biggest part of the bounce and short covering already.  Now that the Fed is reacting and seems ready to help we can only wonder what happens next.  Are we already in a recession and will earnings start to show it soon?  Will we rebound quickly with the help of the Fed and the overall strong global economy?  These are some of the questions that make me want to wait for the dust to settle from yesterday’s action before I dive into the deep end of the pool head first again.  It’s also easy to say that now since I am currently wading pretty deep with bullish sentiment.  With the Fed already making large steps in helping, I think the downside is limited again, not just in size of a potential fall, but also in how long such a fall will last.

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