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I was wondering whether anyone here has achieved the CIIA (Certified International Investment Analyst) title? It is the equivalent of the American CFA programme but mostly geared towards working at financial institutions based in European, Asian and Middle Eastern countries. Has anybody...

let me get this straight, you are basically telling us that you have found a party who is willing to pay the same price for an option w/ less moneyness and less time till expiry; than an option w/ more moneyness and more time to expiry? Damn.. if this is true you have found THE holy grail :D

By "above the body" do you mean higher strike prices? Could you please give me an example of your strategy? Thanks for yor help!

I understand what you people are saying. However my initial argument remains the same: why are people so prone to scaling out their winners - in order to minimise risk - and yet aren't so willing to scale out on a losing position? Wouldn't it be wise to minimise our total risk exposure...

I've heard it often that you should press your winners. However, my question is: wouldn't adding to a winner increase your cost basis on the trade? ie. you are entering again at higher price levels, so if the trade moves against you, your equity might end up taking a bigger loss than if...

What criteria do you apply to scale out your trades? I assume that if you have a winning trade with an initial risk of -1R and a profit target of +3R, you might liquidate half your position at +1R or +1.5R. If that same trade would instead turn against you, where would you liquidate half...

It is very common to see people scaling out half of their positions on a winning trade and moving up their stops to their original entry price levels. (this ensures that the trade cannot turn into a loser and at worst, will end up breaking even). I wonder if people scale out half their...

I CAN get a job in Marketing, but I am not interested in that field. I had basically done my degree so that I could enroll in a Master of Finance which I will start this october. My 5 years in Marketing and Business Management was just a way to access the Master programme I will start this...

Why do you care? Just buy and hold my friend! Easy money..

Actually I am sure people must be selling options and using the premiums collected to determine their stop loss. For example, you buy 100 x MIR @ 40 and sell a call strike 45 @ 0.60. You can then place a stop on the stock at 39.4 and if the move goes against your position, the worst...

What would you do if your 2-3% stop on the short stock position is hit and immediately later the stock price falls again - all before the option expiry date? You would have covered your stock position but would be left with a naked put.. would you cover (or place stops) on the option...

sorry for my noobishness, but I get it that you sold the stock short @ 40.08 and sold puts with 37.50 strike. So 37.50 is your target for the trade (if stock falls below this price, the puts would be exercise and you would be obliged to buy back MIR at 37.50). In the scenario that MIR...

I was thinking the same thing..

Thanks cabletrader. very interesting article,

I might be wrong with the following reasoning but, couldn't a good stategy / edge / indicator turn out to have a negative expectancy in the long run due to poor risk management caused by the trader who trades such a strategy? Ie. if the strategy is like a good Volvo, but the trader is like...

I thought as much. I have always been a believer in the KISS principle (keep it simple stupid). That is why I feeel overwhelmed with all the trading tools which are offered: ie. news feeds, programming software, multiple screens, etc. etc. so I get it that one needs a good financial...

Ok I understand that one needs a solid and reliable (more often than not) trading edge before even risking any real money. My question to you is, can one find an edge of this sort WITHOUT having studied physics, behavioural finance, advanced mathematics and the like? Does a person which...

How does one explain the failure rate in this business? If it really were that simple - ie. buy low sell high - surely 95% people wouldnt fail at it?

I wish I had a clue to just part of the trading puzzle.. Believe me I've broken my head with many possible strategies, charts, intermarket patterns and theories. The more I read and learn, the more I realise that the odds of me being successful are awfully stacked against me. Cheers.

ok I assume you do have a proven strategy that has made you a millionaire (as per your other posts). How much net profit can your strategy make in a year? 50K? I'm willing to trade 2 years then, after you have taught me, and pay you back your 100K + interest. That way I rest assured...