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In the book High Probability Trading, the author says that one of the reasons that traders fail is that they trade more than one market. He says it is better to become an expert in one market (e.g., semiconductors). Do you all trade options in more than one market?

What I had in mind was this: Let's say I want to buy options. I notice that HV is looking good for my time frame. But then i check the ATR and it appears that on average the stock only moves 5 cents or so when it is volatile. So the ATR would indicate to me that I might be better off not...

Any of you look at ATR for decisionmaking? Seems like a relevant indicator for options, yet I never see it discussed on here.

The argument that TA = 90% traders fail might be a fallacy of correlation. I'd bet that most fail because they have no system, they trade during choppy times rather than when a trend is established, they have mad money management, they overtrade because they get bored, they stay too long on...

Yup. I bought 6 Sept OTM calls for 10 cents each. A whopping $60. So what if they expire - I just won't eat at Ruth Chris this weekend. If I get a pop, then I'll buy Ruth Chris :) (I set a very small part of my account for small gambles - just to keep me awake).

I subscribed for a free trial at street.com for th Chartman's daily picks using TA. I went through the archives of his picks and compared to results: in my opinion, his predictions were wrong most of the time, and in the rare occasions they were right, the stock didn't move up much. Look at...

300k in revenues. lol

Wrong.

As someone who is long GOOG options (puts) I have to say that the asks are way above the theoretical values - often 100% more. It is a bit sickening to pay that much for them, but I've made money on them so far. An example: Goog Sep 220 put ask: .300; theoretical value: .0008.

More people should read Fooled by Randomness. A person writing nakeds may have a high winning %, but what does it matter if it only take a few bad trades to wipe a person out. I'd rather be right on trades 40% of the time and have + 50% p/l than be right 90% of the time and have - 80%...

But 90% of doctors don't fail.

lol. Princeton doesn't have a business school. And Yale's MBA is not so hot (as opposed to its undegrad reputation). At the top programs, just about everyone who wants a job in Sales and Trading gets one. Chicago alone sent over 60 grads into S&T at bulge brackets last year.

Do you mean literally mean "function?" As in f(delta)=price; f(theta)=volatility?

I love that site but haven't opened account because am concerned about the fact that online gambling is illegal in the US.

Ok, I see where this is going (gang up on me). I was just asking a question.

Of course I am not expecting a picnic, but I'm not going into M&A. IB trading hours are a piece of cake compared to the guys in the corp finance divisions.

I find it hard to believe that most you have not been to college. Did you conduct a survey of the forum or something?

why do people daytrade? it's not that hard to get into a top mba program (my current path) and shoot for an IB firm, assuming one is reasonably intelligent. the idea of paying some firm so i can trade is weird to me. but hey what do i know . . .

Out of curiosity, where are daytraders getting the 25-50k startup $$. I assume that those who go into daytrading do so because they need money.

Are we speaking about every trader (MBAs at JP Morgan, hedge fund traders, etc.) or just daytraders?