| sieandme |
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Gold User, Member, Platinum User, TeleChart
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| Unsure |
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| Tuesday, February 1, 2005 |
| Monday, January 20, 2020 12:17:14 PM |
36
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I'm kind've new at trading and I've taken the view that if I can make consistent gains of 10% than I'm doing pretty good. So, keeping this principal in mind, if I was to by 100 @ .45 + 10.00 commission in and 10 bucks out my total cost basis would be 65.00. or .65 cents. Now a 10% gain would be about .72 cents. I shouldn't I take my profit at this point?
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OOPS, "That is there is more risk being long than short."
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[and projected to continue declining over the coming months, I will anticipate an SP500 which moves lower and accelerates downward once the divergence process begins. Time always reveals the answer.[/QUOTE]
The Sp500 closed today above its 200 dma and will likely continue to "melt up" and retest the Oct high of 1285 maybe as high as 1300 before turning sharply lower 1Q2012 possibly even busting Octs low of 1074 late Jan/Feb. At this point, for me anyway, the risk is greater being long resistence of Octobers high than short. That is at 1285ish, there is less risk being short than long.
Looking at the Mar Spy quarterlies 120 puts.
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For me the must significant intraday turning point occurs at the open. If opening price seems to offer upside resistence and new lows occur than by 9:45 I'm short, using opening price as my stop. The 19th would be a good example. On the other hand if the market contiues to push higher as on the 20th, I'm long the market using opening price of the 19th as my stop. As of this print I'm still long.
I'm know scalper but if I have a 50/75% return ( including trading costs) on my spy puts or calls, I"ll take the money and run intraday.
Unless Iraq, Iran or europe drops a bomb me thinks we good to go til 1285/1300. After which I'll flip the calls for some Spy Puts 12/30/11.
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QUOTE (akspeculations) In response to both of you I'll share an example of an example of an intraday trade on SPY calls I had today. I prefer nice day trades like this but usually they aren't as smooth and cyclical / and / or they aren't as profitable which is why I sometimes tend to have a swing trade attitude. If I plan out a longer trade (i.e. longer than one trading session) I will trade a vertical spread at least. I did that when I was figuring SLV, or silver would take a dive.
Today since I spent a lot of time reading the WSJ I didn't spend as much time as I usually do looking for reversals. In any event, here is a photo of my trade:
Here is the link just in case: http://img857.imageshack.us/img857/1315/daytradeexamplespy11062.png
I usually like these trades because I avoid all overnight risk. As far as something else with a spread, I will go through my trade history and post an example of a butterfly trade that I put on a while back.
Your two lower chart studiesTS_ Optionspreadviewer bar percent change and contract cost I can't seem to locate on my thinkorswim platform. Are they your own scripts and if so could share'em?
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Option Contract Costs
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Cost Per
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# of Contracts
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Entry Cost
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Trade Cost
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0.75
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5
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9.99
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13.74
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Trade Cost Per Share
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Entry Cost
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Exit Cost
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Position Size
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Trade Cost per share
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$13.74
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$13.75
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$500.00
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$0.055
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Cost Basis/Position Cost
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Market Price
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Trade Cost
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Adj Cost
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Prosition Cost
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$0.700
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$0.055
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$0.755
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$377.50
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0.055
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Entry Price
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Profit Target
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Exit Price
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$0.7550
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$2.0000
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$1.5100
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$755.000
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I do not consider myself a "Day trader" per se, I do trade pretty actively. Because I leave for work before the market opens my orders are usually placed contingent to the underlying being above or below a certain price. I trade mostly options. Some at, some out of and very rarely in the money strikes. I'm looking for 75 to 100 % gains with stops place at 50% below my CB. If i lose confidence in a trade I'll raise my stops. If the trade is a winner showing a gain of say 75% I raise my stop to lock in 50% of it. If I have 100% I'll raise up to lock in 75%. I have found that my winners average about 82% and my losers average about 50%.
I have blown out my trading account many times over the years and have learned the hard way when you draw it down by 50% step aside and if you just have to stay in the game than paper trade it untill your win loss ratio improves.. When I'm up 50% I withdraw it and put it into my personal account or hand it over to Merrill Lynch who manage my IRA and other accounts.
I call this my gambling account. I'm not looking to be a full time day trader nor am I looking for grand slams. I very happy getting singles or doubles. Any grand slams have been just dumb luck. A 400% gain in an option trade is considered a grand slam for me. My motivation is I'm seeking more of a return on my dollars than the .05% Citibank is offering for a 2 year CD.
So, lets get with it:
In a previous post I argued that the market should find support at 1250. I was looking to open a position in the Spy Aug11 135 calls. An order was placed and filled Monday 24 @ .55 i have a sell to close limit @ 2.00.
July 1 2011:
BTO 5 GS071120C140 @ .70 ( GS Jul11 20 140 Calls) Lacking confidence but feeling a bottom is in
BTO 15 SLV071120P30 @ .14 (SLV JULY11 20 30 PUTS) Swing for a home run with cheap deep out of the money puts. max loss 140.
Hopefully topics of this tread will consist of actual trades being considered, tips and tricks on money management; Win/Loss ratios, profit/loss ratios.. trade size management, managing stops and entries.
Ya'll know the beef and potatos of the Game.
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QUOTE (wwrightjuly4)
Bill,
Just wanted to say, welcome to worden.com. Any substantive post on this board is appreciated.
I noticed your posts have recieved some friction. Don't want you to run off, as there is not a lot of content in many of the posts. (my posts are usually unreadable)
As far as technicals. I find Using DJ-30 and simple 13 ma over 26 ma on Weekly chart to set my trading bias, works well enough to prevent me from a melt down. And if you would have gone short in 11/2008 when the 13wk fell below the 52wk, you would have been a genius. ( i'm sure some did, or were already short. Me not so much. You could see it coming from 2004 just took 4 years for the mortgage a.w.r. to take us to the cleaners)
And you might notice if this rally fails here then the 13ma will cross down through the 26 and will probably give you the Downside you are looking for. And the price will be breaking the 52wk which hasn't occured since last MAY.
Of coarse in a Side-moving market this method is not too useful, as most MA's.
But as long as we are in these large swings from 14k ->6.5k -> 12.8k there is good money to be made.
Here I think if the DJ-30 breaks down again below 12150-140, we could fall to 11300-10600 area. And once you fall that far, will take some good news to move it back in the other direction.
The otherside, is this is a nice 1 week. rally to a key point of 12400...If more buyers come in to support the market, we could challenge the 12800, and possibly 13800 i.e. the 52wk would have held.
- thats my -NO- media just charts simple minded read.
Traderderm
- for the record I am negative on the year. Been up, been down. Some nice winners and some big pull backs. Any who. Was glad to here you have been doing well.
- love pthgreat's posts...some day I may figure something out... seems you have found a good rythme.
regards all.
Prehaps to get this board rocking and rolling would be if someone where to post their trading Journal.
Hummmm
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QUOTE (johnlc) America been through this crap before and always came roaring back and she'll come roaring back again. Keep the faith.
True, we have. But now we have a world wide market place. Quite a difference from the past. What we are looking at is the baby boomer generation retiring. Without going into all the facts and figures which I certainly do not know, suppose now that the millions of boomers have to work longer, now jobs are not as plentiful to the new college grads. TIME is the problem. If you are 40 or 50 then another downturn is somewhat acceptable and recoverable. If one is 60+ then another 3 to 5 yr. downer is a big problem. I would bet that of the boomers, a larger % did the usual investment, retirement plan. Find a reliable firm to invest your acct. in mutual funds, bonds, disperse your funds for a safe secure retirement portfolio. How many really felt the need to learn to trade the wall street trends, long and short? Maybe a very small %. Well the greedy wall street bastards just screwed an entire generation. American manufacturig usually could fight its way thru D.C.'s incompentency, but now there is no more American manufacturing. Bend over. [/QUOTE]
My retirement. Account is managed by Bank America Merrill Lynch and I give them a huge thumbs up. They really saved my butt in 2008 by going over weight in fixed income...Us treasuries in the fall of 2007.. Because of Merrill Lynch I would strongly argue that Bac is way under valued at 11.00 bucks . So if your horizon is more than 3weeks this stock will double. My gambling money is with tdameitrade.
Forget about manufacturing, Americas future is and will be about services. IBM is a great example.
Was a nice chat ...off to work I go.
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