I suspect Jeff is suffering from the VIX effect?
http://finance.yahoo.com/q/bc?s=^VIX&t=5d&l=on&z=m&q=l&c=
The vix here started the morning at 19.55 and closed at 19.55.
I have found that under VIX 25, long buying directional does not work well, or enough. You need a different strategy. I´m working on my choices. The lower the VIX number the less volatile the market and at Vix 17, to Vix 12 is practically dead in the water. You can´t trade direct buying calls, or puts.
When in the BULL trend, the trend tends to rescue your errors if you hang in there a number of days. But right now we are range bound. Going sideways. Thus that VIX 19.55 number is not high enough to permit you to make money on trades that are long calls, or puts. Over VIX 25 your puts will start to make money like a bandit.
Not only can you not cover your bid ask spread and commissions, any movement is so shallow as to force your stop/loss to work. Forget the stop loss and maybe just set dollar and cents increments to double up, or whatever you are doing.
http://finance.yahoo.com/q/bc?s=^VIX&t=5d&l=on&z=m&q=l&c=
The vix here started the morning at 19.55 and closed at 19.55.
I have found that under VIX 25, long buying directional does not work well, or enough. You need a different strategy. I´m working on my choices. The lower the VIX number the less volatile the market and at Vix 17, to Vix 12 is practically dead in the water. You can´t trade direct buying calls, or puts.
When in the BULL trend, the trend tends to rescue your errors if you hang in there a number of days. But right now we are range bound. Going sideways. Thus that VIX 19.55 number is not high enough to permit you to make money on trades that are long calls, or puts. Over VIX 25 your puts will start to make money like a bandit.
Not only can you not cover your bid ask spread and commissions, any movement is so shallow as to force your stop/loss to work. Forget the stop loss and maybe just set dollar and cents increments to double up, or whatever you are doing.