This is my story...

Not Allowed To Trade (and the birth of Fantasy Fund)


Starting today I am legally obliged not to trade Options and Forex.

That sucks.

Anyway, nothing in the legal contract prevented me to do demo trading on any financial instruments.

Therefore I will bring birth to Fantasy Fund!

My current broker, OptionsXpress, allows me to do demo trading:



By default, the demo trading in OptionsXpress provides traders with US $25,000 of fake money:



The Fantasy Fund is kinda like Fantasy Football and Fantasy NBA Teams but this is all about trading. All of my trading techniques will still be implemented in this fund. I will start this fund treating the US $25,000 as an extra money in my bank account that I am willing to lose. This means that if I ever lose my US $25,000 I can still pay for my rent and food for at least a year.

The financial instrument I am going to trade with this fund is my favorite, SLV options, which I have discussed in my previous post  Capital Gains Opportunity - The SLV Call Option (Part 1)

Silver is now at about $40 an ounce and since SLV tracks the silver price, we have to look at the current status of the Daily and Weekly SLV charts:





The setup of the charts and my trading technique is all explained to my previous post Capital Gains Opportunity - The SLV Call Option (Part 1)

Going back to my OptionsXpress demo trading, I will use all of my fake US $25,000 to buy in-the-money Call Options that have a lifespan of more than 1 year.



Given the status of the current Daily and Weekly SLV charts and the fundamental analysis I have discussed in my previous posts The 131,000 Philippine Peso Lesson and Capital Gains Opportunity - The SLV Call Option (Part 1), I am positive that silver (and SLV) will go near US $100 an ounce by January 2013.

I know that there will be times that the silver market will have corrections and pullbacks in the future because nothing goes up in a straight line. In order to deal with that I will just have to use Stop-Loss Orders in order to protect my account from going bankrupt.

Provided that silver (and SLV) will go to US $100 on or before its expiration date (January 2013), my projected account size will grow to US $165,000 from my fake US $25,000 starting demo account. That is a projected 560% in profit!

Anyway I might be wrong with all of this. But I am willing to lose my fake US $25,000. Whatever, right?


For more information about silver and Options Trading please get a copy of:


WARNING: Articles posted in this blog are from my actual life experiences and opinions. These do not guarantee a life of riches, alleviation of poverty, or making the world a better place. I am NOT LIABLE if you follow any of the articles posted in this blog and got poor.