I ended up selling UNTD and EBF at the open today because I thought it was time to get rid of EBF and UNTD looks like it's breaking down technically. I closed that position with an almost 12% gain, and I didn't want to see my gains slip away. I think it might go down a bit, but I don't think I will re-invest in it.
Now I'm sitting on a bunch of cash and nothing to invest in. The way the market has been acting, I think I might do okay by sitting on the sidelines. I was thinking about looking for some low growth high dividend stocks, but I don't think that's the best plan for me. I normally don't hold stocks for a long period of time and by parking my cash there, it will/might force me to wait awhile for some decent returns. As of right now, my investing mentality is on a year to year basis. I know some people look at the long term, but I'll stick to a short term mentality. Before October, my average yearly return was 23%. I'm assuming it's lower now since October has been a bad month, but I think I can maintain around that average. It might be because I am young (and possibly impatient), but also because I'm surrounded by other investors who have the same sort of mentality. At our place, and others, we want to generate returns (generate alpha). Beating the S&P is not the goal, it's making money. If the S&P lost 3% and we lost 2%, that's useless to us.
I also need to move some money over to my brokerage account. I want to hold about $3000 in my ING account (for emergencies, etc.) and around $2000 in my bank account for bills and spending money. This means I need to transfer over about another $5000 or so into my brokerage account. I still haven't decided if I want to transfer over my Roth, and I still need to fund that. By the way, the Think or Swim software platform is incredible. It's really advanced and it will definitely help me with my options trading in the future.
One more thing: by transferring over more cash I will also have more option buying power. I'm looking into a few ideas where I would write calls and puts, but I'm not ready to go into the details just yet. I think I might be able to generate between 0.8% and 1.3% returns per month. Annualized this is about 9.6% to 15.6%, this is assuming nothing goes terrible wrong (which may be wrong to assume). It's a learning process though, and the only way to learn is by trying new things.