Registered User
Joined: 2/1/2005
Posts: 36
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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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Registered User
Joined: 2/1/2005
Posts: 36
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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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