HowardCohodas Index Options Credit Spread Trading Journal

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Don´t care if he uses a OUIJA board, if his account balance is constantly growing positive, he is doing something right? Ever try chicken entrails?
 
Quote from EliteThink:

Can you explain why it does not exist?
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Well - the normal implication by 'trading noise' is that the use of lower timeframes is futile because at that level it is 'noise'.

Hence the term "trying to trade the noise".

Trading based on order flow is just a different beast. So anyone looking from 'on high' may well consider that level of market reading to be noise but that is primarily because they do not understand it/haven't developed the skills.

Personally, I do not use timeframes in any meaningful sense. I will compress a chart so that individual bars are not discernible and use a tick timeframe that allows me to see just over a days worth of data.

So - I want to see where we have been in the last day and I am mostly not concerned about anything else other than having a glance at a higher level of action before the market opens.

As we come to an area of interest, my focus is no longer on the chart but on the order flow.

To some, this is all noise but to me, this is expectation (where has it been) and confirmation (what's it doing right here, right now).

Noise, it isn't. There is no noise in the markets. Only bids, offers and trades.
 
Quote from falconview:

Howard

Trade the noise? Sort of I guess? You can whip off a $100 net profit couple of times a day. But one loss usually wipes out 5 winners.

I think I might be getting a handle on it? Going to bigger time frames and let the ruddy prices gyrate a few hundred dollars up and down. Can only trade 2 spy a week anyway, because of day trader rules, so makes sense. [/QUOTE


scalping in a non margin account is almost impossible, it doesn't allow you to be wrong enough. you have to be able to get on the right side of trends/signals. No one is gonna hand it to you and you will waste time and money jumping from system to system, read market wizards again.
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I tried using TICK charts, maybe 15 years ago. No more than a few weeks. But didn´t really get any idea that was solid in using them? So abandoned the idea.

Order flow and buying and selling as in moving averages is a pretty good guide. Still the market makers have ways of seperating you from your money.

I bought this morning at the market, but ended up with the highest price of the day so far, and have not yet seen my premium come back to even were I can break even. Think next time, if there is a next time, I´ll wait 15 or 20 minutes and get a cheaper price after the premium volatiity balloon has gone and deflated a bit. Right now I´d be happy to break even.
 
Quote from falconview:

I bought this morning at the market, but ended up with the highest price of the day so far, and have not yet seen my premium come back to even were I can break even. Think next time, if there is a next time, I�ll wait 15 or 20 minutes and get a cheaper price after the premium volatiity balloon has gone and deflated a bit. Right now I�d be happy to break even.
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First, I do not enter my OTM spreads "at the market." I always look at the overnight futures to inform my trade entry method. If the futures indicate a large market jump at opening and if I'll be at my trading desk, I'll wait for 30 minutes or so to decide on my spread trades. Under the same potential market gap indications, if I'm not going to be at my trading desk when the market opens I wont enter a pending limit order for my spread.

Today was such a day. The overnight futures showed a likely significant market drop at opening. Even an ATM order to take advantage of that information is unlikely to be filled to my advantage. I was able to get trades at my rules shortly after 10:00 am.

Quote from "All I Know About Trading Options, I Learned in Flight School":

It is better to be on the ground wishing you were in the air, than in the air wishing you were on the ground.
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I´m not a religious believer, bt that commment of yours about being on the ground, or being in the air sure tickled me. One time, 50 years ago, I bought an Ercoupe in mint condition for $900 and soloed in 5 hours. Figured if I could navigate a boat at sea, I could find my way down to Central America from South Florida. Taught myself with a handbook and tried to avoid major airports. Learned some valuable lessons and survived. Back then, all the airports with gasoline, were further than my flight range. So had to land in villages sometimes in Mexico to siphon gas from trucks. Landed on the common field for feeding mules.
At any rate, I learned to pray several times vehemently. VERY LOUD as well. After dark mostly and like 3 mins of gas left while trying to find an airport in the dark. Your line brought a chuckle to my memories. Oh the things I learned, that I had read, but went back afterwards to my thick flying manual and scratched my head and saying - OOOOH! Thats what they meant?

On the trading, my $10,000 is down to $7201. I only won one trade and have lost three. Can´t seem to get on the right side of the market direction. My market order really hurt as they ripped me big time.
I´m trying to learn a new method I´ve devised with revised LIMIT order rules, doing something new. Whoever said, real money trading is different sure had it right. In re-reading the disclaimer, I notice again that they say all orders are filled with 20 min delayed data and at the midpoint. That can be a couple of hundred dollars off. Thought of quitting and pulling out, but one last try. Just cleared off all bets, and starting fresh with a new method in Funny Money, but with limit orders from my active account.
 
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