Do you have less than 5 years trading experience … then you need to talk with me
- Thread starter KCOJ
- Start date
covel is not that humble believe me.
Hi Everyone. I would be grateful for your feedback on a trading issue.
I'm returning to trading after a long break. I'm anticipating bear markets in the US and other key markets so my strategy is to use a combination of buying put options and shorting stocks. All of these strategies benefit from an overall downward market direction. I'm using Dr Alexander Elder's "The New Sell and Sell Short" Chapter 7 (2nd edition) to pick stocks to short. He gives a step by step method in that chapter and his reputation, 30 year track record and associations with people like Robert Kiyosaki (Rich Dad, Poor Dad) are excellent.
My strategy is to start by trading put options first (I know people believe in virtual "paper" trading for a couple of months when trying out a new trading strategy). I anticipate some gains and losses as part of the experience of learning a new strategy as a trader. Losses with options are limited to the cost of the option premium. As I get better at it, I will move to shorting stocks. Making mistakes on put options are not as bad as making mistakes shorting stocks. The financial consequences of shorting stocks and "getting the trade wrong" are much worse because the losses are potentially unlimited! Clearly the potential gains are significant which is why I'll be using this bear market strategy.
Does anyone else have any experience of moving from trading put options to shorting stocks- How easily did your successes in put option trading translate into profits in shorting stocks? Do you think you can use the same strategy for finding "good" profitable put option to trade as you can for finding good stocks to short?
I'm returning to trading after a long break. I'm anticipating bear markets in the US and other key markets so my strategy is to use a combination of buying put options and shorting stocks. All of these strategies benefit from an overall downward market direction. I'm using Dr Alexander Elder's "The New Sell and Sell Short" Chapter 7 (2nd edition) to pick stocks to short. He gives a step by step method in that chapter and his reputation, 30 year track record and associations with people like Robert Kiyosaki (Rich Dad, Poor Dad) are excellent.
My strategy is to start by trading put options first (I know people believe in virtual "paper" trading for a couple of months when trying out a new trading strategy). I anticipate some gains and losses as part of the experience of learning a new strategy as a trader. Losses with options are limited to the cost of the option premium. As I get better at it, I will move to shorting stocks. Making mistakes on put options are not as bad as making mistakes shorting stocks. The financial consequences of shorting stocks and "getting the trade wrong" are much worse because the losses are potentially unlimited! Clearly the potential gains are significant which is why I'll be using this bear market strategy.
Does anyone else have any experience of moving from trading put options to shorting stocks- How easily did your successes in put option trading translate into profits in shorting stocks? Do you think you can use the same strategy for finding "good" profitable put option to trade as you can for finding good stocks to short?
What track record? I don't think having a bias is the right mindset.
My problem with Michael Covel is he does not discuss trend following and the methodology of it yet, he is supposed to mentor people? Let us get real. There are numerous books on trend following out there. It is not like anything he shares is top secret? That is not counting the numerous trading videos on trend following on YouTube. If a supposed guru cannot even show a few trade setups, you have to question that person's competence really. What are you going to teach people that they already do not know?
I'm a long time lurker, and somewhat inconsistent trader, but this post struck me as genuine so I finally registered. I've always done a lot of research on my own, and I soak up resources wherever I can, but I've never had a mentor figure throughout my trading career - and from what gather, that's the single biggest way to cut years off your learning curve. Whether in trading or other areas.
How can I get in touch with you? I think forum noobs are limited in their ability to send private messages for some indeterminate time before they gain full access to the forum.
How can I get in touch with you? I think forum noobs are limited in their ability to send private messages for some indeterminate time before they gain full access to the forum.
it's hard to mentor people who do not take the time to read or can not remember what they read so here i posted it for you - i think you are not detail oriented and thus un-mentorable.
@KCOJ says this is how to reach him as he stated in his 1st post below.....
If you’re starting out in your early years of trading and feel you could benefit from some experience, have some specific queries or just looking for a soundboard to throw some of your ideas against then please feel free to forward me a pm with a brief intro and perhaps an outline of the issues you’d like to address. Following that we can set up a Skype to begin our conversation.
Based on number of posts IIRC.
Thanks, but as I said in my post I was unable to send PM’s as a brand new forum member.
It looks like the forum gods have since bestowed that ability on me. That was fast
