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I am planning on starting a venture daytrading warrants. I guess 2000 euro is enough starting capital? By this I mean taking into account the elasticity that certain options provide. I will be mainly investing daily in deep ITM warrants with very low time value. Or I might go for deep...

OK. but let me get this clear: your edge is 52%. You therefore win 52 out of 100 trades. you are a net winner over 100 trades, (52 > 48), am I not correct?

Could you please explain why with this example you only expect to win 2 hands out of 100? Isn't your edge 52%?

I am a serious noob who likes hanging around here learning from reading tons of threads.. .. could someone please clarify how one can determine whether a particular market is "strong" or "weak"? Is this based on the trading volume alone? Thanx for helping out a beginner and sorry for...

ok thanx. I shall be buying one of the higher-end macbooks to start trading then.. i-ve also noticed that many brokers have web-imbedded, java-based applications for charting and order input. In that case, any computer with java software should do?

Was contemplating in purchasing a Mac for my business and trading needs. Just wondering whether Mac OS offers decent compatibility with most of the trading software/platforms available. Taking into account that most programmes are Windows-based, is there suitable and competitive trading...

You mentioned this "wiggly line" on the MACD for the second time. What exactly on the chart are you refering to?

small?! its a 800 x 462 jpg file. I wouldn't consider it small. the two entries for the shorts are at approx 11:18a and 12:54p respectively on the chart.

Lovely chart. I see atleast two long entries and two shorts in that time frame.

I believe markets reflect people's expectations and beliefs regarding the traded asset in question. There is no such thing as the market being "right" or "wrong" IMO. We just have to make the best (ie. be able to profit) of what we know about the markets in any given moment (MUCH easier...

Regarding straight calls & puts being too tough to trade: What if the underlying is an index? And you bet on a particular direction (with either a call or a put) based on the dominant trend which the index is following?

Sorry? Was that directed towards me? Sorry if I created any sort of confusion, but by "systematic trading approach" I would like to have a plan of action. A so-called system for which I can aim to continuously pursue a certain target in a given period (on a consistent basis). Basically I...

Thanx man. Shall be eagerly awaiting your helpful input. Regards, Chirag

How is trading then, any different than a refined version of gambling? Afterall, both seem to be numbers' games based on probabilities. By "refined" I mean ppl have actually come up with indicators, studies and analysis of the possible outcomes in a trade. The study of gambling hasn't...

but it goes both ways (regarding the 20% bid ask spread) If I get the direction right, my percentual gains on the capital risked will also be higher. Should I go for warrants which are more ITM and with a higher delta then? Those have tighter bid ask spreads.

Thanx grob for your effort and time. Thanx spyder as well, I shall definitely look up the links you posted. I guess I have a lot of studying to do. Shall keep you updated on my progress and come back to post on this thread with more specific questions related to what I will be teaching...

As far as I know, here in Spain, your warrants' position can only be long. I.e. you cannot short them nor sell more of them than what you own. I believe then, that there is no possibility to be short volatility nor short vega in warrants for my case?

Sorry!!! My BAD!! you mean I can risk $100 in LOSSES per trade.. Excuse me.

In your example, if the stock trades at $50, then I can only buy 2 shares per trade ($100 risk per trade).. am I right? From where do you get 20 then?

Sorry I meant CHEAPER not undervalued. Thanx for correcting. I also realize I have to cover the bid ask spread. So basically I need a 0.02 increase to see profits. I am strong about the bull trend. Today's pullback only means that I can buy long positions and calls at a cheaper price than...