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Thanks Axon :) This post really helped clear things up for me. Do you recommend that I use a limit order when closing out my trade prematurely if it hits my stop loss at $80? Or should I use a market order?

Thanks for your response. Sorry I can't answer this. Does this depend on what the value of both puts are on the day my stop loss is hit? Is there a way to tell this in advance? I'm not sure if this is helpful but the MinInvest (in Interactive Brokers) is -156 (credit). This is the minimum...

That's the correct reward:ratio. What do kind of reward risk ratio do you like to see when putting on a credit spread?

75% chance for max return 13% chance for max loss according to Interactive Broker's Performance Profile for the spread Do you have a minimum 'chance for max return' that you look for when trading credit spreads?

I'm interested in buying the September 18 70/60 bull put combo for GSX. My stop loss price is $80. At this point, I will close the position. Max return $160 Max loss $840. I have $2000 to invest. Is it acceptable to trade an option with this amount? Thanks

Hi guys, do you know of any good books on bull put spreads? I'm trying to learn as much as I can about them. This forum has been really helpful. Thanks.

Thanks for your response guru. Can you please explain to me what the difference between negative limit orders and positive limit orders is? I posted a pic for clarification. If it's a credit bull put spread, what's the limit order for? Sorry if this is a dumb question.

Why if I may ask?

Hi guys, Is it possible to customize what leverage you want to use before each making each trade? For instance, for one trade, let's say I want to use 2:1 leverage, but for another I want to use 4:1. Or can you only choose the leverage for your entire account? Thanks

What do you think of MACD, RSI, stochastics? Overrated?

Hi guys, I'm looking AMD's September 18 60/50 bull put spread. According to IB, the max return is $22 per contract. Is that too low? Do you have a minimum max return that you look for when trading bull put spreads? if so what is it? Thanks

Thanks for the responses guys. I have one more question: if I went to initiate a bull put credit spread, do I click "buy" or do I click "sell" in the order entry section?

What time of day do you typically trade?

Hi guys, I've been thinking about starting an online dropshipping business and using Facebook advertising to drive targeted traffic to my site but I have concerns. I also like swing trading in the stock market. I've read about some people (like Gabriel St Germain) who make $1200 in profit a...

Thanks for your reply. Is there any way around this? I bought the Sept 18 bull put spread for DPZ and would like to see how it turns out.

Why is that?

Hi guys, most of the trading strategies I've read on the internet are day trading strategies (eg the Cowabunga System and the 3 Ducks system from BabyPips). I don't want to wake up at 12am to trade the EUR/USD or GBP/USD. Do you day trade, swing trade, or position trade currencies? Also...

I bought a vertical spread (bull put spread) in the demo version of IB, saw the spread that I just bought in the 'Trades' section, I closed IB, reopened it and the trade was gone. It's as if I didn't even initiate it. It's nowhere to be found. Has this happened to any of you?

If you had to choose between trading stocks or trading stock options, which would you choose and why? Is there any advantage in trading stocks? I'm asking this question partly because I want trade options. I like the idea of using leverage. I want to trade bull put spreads for growth stocks...

Can you please recommend a good stop loss distance for my trades? I tried a 5% stop loss for my trades but got stopped out repeatedly by normal market fluctuations. Investor's Business Daily recommends even a 3% stop loss for swing trades. I don't think that would work with my trades though...