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I think you confuse "uncertain outcome" with your "uncertain profit/loss". The stock market has many certainties, all of which have nothing to do with your P/L. Here are the basics: 1) Stocks go up. 2) Stocks go down. 3) Stocks go flat. 4) Stocks never go up forever. 5) Stocks never go...

Sure, if you want to curve-fit Trading/Investing into being called Gambling. The real issue to consider as proof that it is *not* gambling is "control", especially "self-control". Meaning, that Trading without self-"control" IS gambling. The Mars Rover without NASA-engineered back-up...

The point is that with Gambling, the risk is set. A rabbit foot will do nothing to minimize that risk.

The statement "Trading is Gambling" is an example of "Affirming the Consequent": http://en.wikipedia.org/wiki/Affirming_the_consequent So, the logic is flawed by saying: The truth is: Gambling is participation in high-risk activities that are easily avoidable. Professional Trading is...

Google: "dfantome" https://twitter.com/DFantome The shame of it all.

UL ATR vs. UL Price vs. Option IV for max ROI Some stocks make much bigger percentage moves compared to others from day to day and week to week. Some stocks are $20, some are $200, and some are $400. And then there is the Option Smile and/or Skew with all of the different OTM, ATM, and ITM...

Oh, and just to cover my bases, I need to plug-in another "Yes": Yes, for those who are not like "anyone else". :D

Bingo. I read that most HFT firm algos are coded without safety features to make them faster. Faster = greedy, sloppy, careless = Flash Crash. As for the original question, "Is it possible to make money automated trading?" Yes and No. Yes, for a deep pocket firm. No, for anyone else...

The url was supposed to include "(finance)"

http://en.wikipedia.org/wiki/Portfolio_margin http://en.wikipedia.org/wiki/Haircut_(finance)

Range vs. Range?

Is an option's IV range typically similar to the UL's 30-day HV range? As in, can you use the HV range to gauge the IV levels?

This has not been my experience. Of course, maybe I trade more contracts than the average person. My real PnL's vary a couple hundred dollars then expectations. It's not that big a deal, it's just that I am someone who wants precision. Any recommendations to adjust IV?

But I am not asking how to predict movement. I am asking: When a movement occurs, then what would/should the new IV be at the new UL's price? I have no idea how to "trade volatility" - I never studied it. But, I would bet that those who trade it (or trade anything else) have a way to...

I buy Calls and Puts to capture the UL's movement. I have created a BS spreadsheet to help me estimate my profits. It is basically a table with: Columns being Stock prices (e.g. increments of 0.20 per col) Rows being Days remaining (e.g. row1=day54, 2=53, 3=52, etc.) At the moment, I...

Oops, sorry I came across as "disappointed" in Jesse's life story. His biography actually borders on quintessential. It's just that I am a pure American - I prefer happy endings. So, do you think a billionaire trader who is "very tight lipped" will remain unknown? I tend to think not (e.g...

I also agree "screen time" + "price action" = "a feel" for the market - and that brings success. So let me just state that my original post is for curiosity sake, nothing more. Meaning, I am not thinking that any answers will be magical or anything. Maybe insightful. Or, just interesting, that's...

I guess I need to explain then. My original question relates to correlation. RSI works very well. Elliot Wave Theory does not work at all. I think there is a correlation. Hmmm, maybe it's trading experience?

Huh... does Titanic or Hindenburg ring a bell?

I wish I had the time to read every Wikipedia article out there about the math geniuses and/or risk takers who created each stock indicator and trading system, etc. - for example: Has Personal Trading Experience: Bollinger Bands - John Bollinger: analyst, awards, alpha geek* Donchian...