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Quote: Why do you trade? To afford hookers and cocaïn

Strange, if you are so hugely successfull in trading why don't you trade for yourself and keep all the money?

@PurpleOne; The only way to set your stop losses and take profit targets, is to backtest your system; tweaking the parameters and judging by yourself if you can stomach X drawdown or not. Backtesting gives you the vital confidence in your system so you don't exit too late/early or enter too...

Here the SPY chart since inception. The downside trend is steeper than the upside trend, you can look at other charts, you'll see that more often than not this pattern repeats itself.

Assume the price goes up very quickly on the index, which is not as frequent as the reverse (sudden price plunge). In this case the IV decreases thus deflating option price so I'm not hurt badly. In the reverse situation which is way more frequent (sudden drop in the index), the IV surges and...

A good way to judge the price of the option is to use IV/SV ratio and confirm with the options volume. Simple IV 52 week high/ low, is a good start buth not enough, because in some markets, like this one the volatility stays high for long time. Look at the SPY chart I posted. The point A is...

@MaverickZ; don't answer to trollers who know nothing about options so this thread stays clean.

@ForexForex; it may sound counter intuitive, but high volatility provide more security to call writers. The reason is when IV is up that means that the trend is downwards (VIX very rarely goes up on bull market) and that you can write further otm calls due to inflated option premiums, so this...

As long as the SMA on the spy is trending down, sell call credit spreads on each overbought signal (ex %R >90%; CCI >100), don't commit too much capital on each trade (20% percent of margin max), set a stop loss on your short leg as soon as you sell it. You can also buy puts using the same...

@MaverickZ ; +1

You blow up only and only if you don't have stop loss and you over leverage. Selling calls on indexes is safer than selling puts for 2 reasons: 1- IV surges if the index plunges, inflating the premiums which hurts your position. IV decreases (call IV increases, but moderately) if index goes...

Where you using bull put credit spreads? Did you sold options on stocks, indexes, futures? What was your time frame? Can you post an example of your most damaging trade? I sell call credit spreads (never puts because of the risk of sudden drops in the markets) on NDX and RUT (so I don't worry...

I make money consistently with put and call credit spreads. You need to have a backtested entry and exit setups that have high probability. Then to stick to your system even if you have a bad streak. Backtesting gives you confidence in your system so you can stick to your plan when volatility...

Hello; I was wondering that wheter is it realistic or not to gain an average of 0.5% of profit (after slippage and commission) scalping stocks daily. What should a stock scalper set a realistic goal of % steady daily gain after slippage and commisions? Thanks.

If you read the contract you have with your broker, you will notice that they are allowed ti trade against you. It is also stated that the data feed is not 100% reliable. Given these 2 informations you can have a clue why nearly 100% of retail traders loose their shirt.

Hello; I know by experience and by reading my contracts with the brokers that if you are a small account in forex you play against the broker: if you win he looses. Is it also the case for the futures brokers? I mean do they have an intrest in making you loose? Are there any conflict of...