Apparently there was more excitement in the market than skiing this weekend. Driving through NYC heard the dow was down another 1000 points, WTF? So at my next rest stop I had time to check SVXY to make sure it was still alive.
On a 9 hour drive to Maine had plenty of time to think about what the hell to do now.
So the first thing is I need to pay attention to rule #1, first do not lose any money and rule #2, do not forget rule #1.
All of my big losses have been on derivatives or leverage on derivatives. SVXY now and futures options. So no more leverage on leverage or as @jeffcp66 said a derivative of a derivative of a derivative.
Anything I have been assigned on a loss have always been able to work it back to even or a profit.
So rule #3 for me now is only trade hard assets, something you can be assigned when the crap hits the fan. From there can work it back with options, usually quicker than you think.
Rule #4, weekly options give more options for adjustment, so my ticker must have weeklies.
Rule # 5, stop trying for home runs, playing money ball I can double an account every 2 years conservatively.
#6, if anyone here has a dog they can train to bite me when I violate any of these rules, I will come pick it up.
Right now looks like the algos will be driving volatility for a while until we establish a new range.