iceman's options trading journal
- Thread starter iceman1
- Start date
iceman is killing it!! 171% return in two days, you're absolutely killin' it,man! I particlularly enjoy your musings on experience in trading as it relates to other professions (medicine) and the learning curve associated with it, going from novice to neophyte to professional. I am still paper trading for the most part, developing a trading plan. From what I can gather so far, the three MOST important things when it comes to trading options, and they are
1. risk management
2. risk management, and finally
3. risk management
I'm really chomping at the bit to start trading for real. I'm pretty sure my plan will consist of 5-6 positions per month consisting of calendar spreads, double diagonals and iron condors and maybe throw in a vertical or atm fly in for good measure. The more I study, the easier it is to fall into the 'analysis paralysis' trap. I'm finding I'm not real big on TA and I can probably find good trades mostly on volatility relationships, IV/SV skew and the like. Just when I start to grasp new concepts, I keep reading more shit I don't understand like most synthetic relationships, boxes, reversals, fly time spreads, jelly rolls, bearclaws, pearl necklace, dirty sanchez, etc. Iceman, what other pearls of wisdom do you have for newbie traders who haven't 'pulled the trigger' and/or what materials do you recommend?
1. risk management
2. risk management, and finally
3. risk management
I'm really chomping at the bit to start trading for real. I'm pretty sure my plan will consist of 5-6 positions per month consisting of calendar spreads, double diagonals and iron condors and maybe throw in a vertical or atm fly in for good measure. The more I study, the easier it is to fall into the 'analysis paralysis' trap. I'm finding I'm not real big on TA and I can probably find good trades mostly on volatility relationships, IV/SV skew and the like. Just when I start to grasp new concepts, I keep reading more shit I don't understand like most synthetic relationships, boxes, reversals, fly time spreads, jelly rolls, bearclaws, pearl necklace, dirty sanchez, etc. Iceman, what other pearls of wisdom do you have for newbie traders who haven't 'pulled the trigger' and/or what materials do you recommend?
volatiltypimp (great screen name b.t.w)
I will have more to post over the weekend as this has been the most frustrating couple months in terms of missed opportunities. So I am going to reflect on that in my Journals. But briefly in reply to your post
1. re-read the posts from Maverick74 that I put in this Journal a few pages back (if you have not already done so).
2. the preparation/reading you are doing is good. It will pay dividends over the years. It is human nature to view very successful people in all walks of life (like trading) with an assumption that somehow their path was easier --- that they had more opportunities or natural talent. Sure sometimes that may be true to a certain extent. But no one ever achieved a high level of enduring success without doing lots of preparatory work. When I first got into trading I thought my IQ and desire could substitute for doing all the work, for preparation, for planning, for focus and for experience. Thinking one is bulletproof is an illusion that the market eventually (and often quickly) crushes.
3. You are reading a lot of trading materials and books which is good. In fact... select a couple-three to read over each year. For me that includes Reminiscences of a Stock Operator and the Market Wizard books.
4. I recommended Maximum Achievement by Brian Tracy (on another thread that Ripley started). This is not a trading book. But in my view it may have as big an impact on any realtime trading you do over many years as 'trading' texts.
5. believe this or not - there are no shortcuts unless you happen to be a trading prodigy. In my opinion there is very little substitute for experience, period! Talent is fine, intellect is helpful, passion is great and persistence is good - but in the final analysis nothing supplants experience; and whether you believe it or not that will take time. Convincing oneself that there are shortcuts is tantamount to guaranteeing failure. I am not stating that you should not be supremely confident and have total faith in yourself at all times that you can make it - but rather about deluding oneself into thinking they/we can slide by, slack off and still arrive in trading nirvana. Trading is a job. Like any career it is important to work smart not just hard. BUT don't ever believe that your Journey will be made easy by good intentions....
.... rather the road to (trading) Hell..... is paved with good intentions.
to be continued....
sorry for delay in reply
I pulled the plug on all TTWO positions for a small + Friday when I saw the market action. But I defintiely will keep this on the radar screen. I felt the large open interest near the 20 strike could put ttwo near the $20 pin. It dd not hapen. I do beleive this one is going to pop but I am not sure which direction. You see the pattern. If vola is acceptable then a back month straddle or strangle is the way I would play it, still.
anyone have comments or thoughts on this one- please post.
"11-Jan-06
Minutes ago Herb Greenberg discussed three stocks that are 'red flagged': TTWO, FFH, and HANS. Says that TTWO is expected to file 10-q with the SEC, says that the co is filing earnings 60 days after quarter, should pay attention as to why it has taken so long."
Briefing.com
I'm sure there is plenty of short interest for fuel is nothing is fishy
But it's in a triangular pattern and it is very possible it could be resolved to the downside as a continuation move and maybe trade to to 12-13, rather than reversing higher.
My view in entering a strangle last week was 24 or 12 was doable.