Personal note

Quote from falcon:

Wise words Mark, note taken. Asked my broker & another about portfolio margin out of curiosty, bunch of criteria I won't be able to meet anyways.

Also, was told if was able to qualify and then trade more I can apply for lower contract fees, possibly 1.25 per contract. I would still have to pay the minumn fee (ticket cost) though, does'nt seem all that appealing. Thought they would at least offer to waiver the ticket cost:(
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Why in the world are you paying a ticket charge?
 
Quote from dagnyt:

Quote from dagnyt (in response to RFT) on 10/11:
"I will not respond to anything ese you have to say on this topic."

Quote from dagnyt (in response to RFT) on 10/13:
NOTICE TO ALL PROS ON THIS FORUM; IF YOU BELIEVE I AM MISTAKEN AND THAT THIS MORON IS CORRECT, I INVITE YOU TO SO STATE.

Thank you
Mark
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Well, that promise lasted two days...
 
Quote from TraderZones:

Well, that promise lasted two days...
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The reply was directed to readers of this blog, it was not directed to the moron who wrote it.

I hoped that difference would be recognized.

Mark
 
Why in the world are you paying a ticket charge?

What do you mean why? each transaction requires a 12.95 min, so whether i trade 1 contract or 20 I am charged the still charged the min. :( I was told this is already a discount from their 15.95 min.

Can I get a better deal elswhere?
 
Quote from falcon:

Why in the world are you paying a ticket charge?

What do you mean why? each transaction requires a 12.95 min, so whether i trade 1 contract or 20 I am charged the still charged the min. :( I was told this is already a discount from their 15.95 min.

Can I get a better deal elswhere?
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You can pay 70 cents per contract (a one-lot is $1.00) at IB

You can pay $0.65 per contract + 4.95 at TK

Mark
 
Quote from dagnyt:

NOTICE TO ALL PROS ON THIS FORUM; IF YOU BELIEVE I AM MISTAKEN AND THAT THIS MORON IS CORRECT, I INVITE YOU TO SO STATE.

Thank you
Mark
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There is no need for beliefs. You will smell your stinky onion soon. I wanted to take my time, by giving yopu more time. Pull an all nighter to figure it out, or hire someone to help you before it is too late.

Guys: stay tuned! I am about to show the first hole in his "thinking ship", and while it should sink.
 
Mark,

Are you serious... 5% - 10% per month??? I appreciate your optimism; however Dagnyt (Mark) stated that he gets about 25% - 30% per year on the GOOD years. This is such a wide disparity in earning perspective from two very experienced option traders, Mark (Option911) & Mark (Dagnyt).

Are you a big proponent of ICs as well? This is Mark's (Dagnyt) preferred/most recommended strategy. Or do you engage in a strategy with a higher risk:reward and probability ratio? If so, would you care to explain?

Thanks,

Walt

Quote from option911:

I agree with Mark 5-10% a month is infact possible given a few things

1. You are recycling your capital every month

2. You have a margin account

Given those circumstances I think those returns are somewhat realistic believe it or not. I dont think everyone will do it, but if you meet 1 and 2 it is very possible. With a non-margin account I think a good goal is too shoot for 25-30%.

PS Madoff was claiming over 10% a month at the end.

PPS Congrats on the book.

Mark S.

http://www.option911.com
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Quote from jones247:

Mark,

Are you serious... 5% - 10% per month??? I appreciate your optimism; however Dagnyt (Mark) stated that he gets about 25% - 30% per year on the GOOD years. This is such a wide disparity in earning perspective from two very experienced option traders, Mark (Option911) & Mark (Dagnyt).

Are you a big proponent of ICs as well? This is Mark's (Dagnyt) preferred/most recommended strategy. Or do you engage in a strategy with a higher risk:reward and probability ratio? If so, would you care to explain?

Thanks,

Walt
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Walt,

1. 5-10% assumes the investor is trading on a margined account. Most traders that have margin accounts EXPECT to get 100% return on capital per year. I know as a market maker I was actually expected to do better than that at times.

2. I think 25% a year is a very good return for the average investor, but if someone is willing to put the time in, even with a reg-t I think account 3-5% a month is doable. However, the condor will not get him there. It takes a more aggressive approach, good capital mgmt, and the recycling of capital in a given month.

3. I would say that the majority of my capital goes into trading butterflies developing those positions and managing them. I like them because when executed properly they will almost always beat an IC. The other factor is the margin required to trade them is FAR lower. A standard condor with 5k in cap might return 800-1200 in your good months. On 5k of capital in a butterfly you should be able to do FAR better, in a shorter period of time. I would encourage traders see how much captial is needed to return 1k on a RUT condor (say the shorts at a 12-15 delta), Vs a Butter with the wings set at 40 pts (1 STD). There is obv. a lot more to this but its interesting to look at the risk reward.

Mark will probably even tell you that fly traders should over time do better, if they know what they are doing. That said for most traders I think 25% is AWESOME! It takes a lot of work to be a good trader, and some people will never get to be better than average no matter how hard they work (they dont have to stomach for real risk). I would go on longer, but this is Mark's thread. He does alot of REALLY good work helping people learn how to take care of their own money. I have amazing ammounts of respect for the man.

-Mark S.

http://www.option911.com
 
Quote from jones247:

Mark,

Are you serious... 5% - 10% per month??? I appreciate your optimism; however Dagnyt (Mark) stated that he gets about 25% - 30% per year on the GOOD years.

Thanks,

Walt
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[aside to Mark S. It's everyone's thread]

Walt, some rambling thoughts:

It begins with the trades made. It also depends on how well the trades go during the month. It most;y depends on the size you trade.

I have earned 15-20% in one month several times. But never consistently. And I have losing months. Anyone who tells you he wins every month is not telling the truth.

I cover my shorts early. That immediately reduces the potential profits. I do that to keep risk at a point where I like that risk.

I am not greedy. I do not close my eyes to a troubled situation and hope it will work out.

Trading from home is not the same as being a market maker. If Mark S say's it's doable to earn 100%, ask him the probability.

Yes, it's possible. Anything is possible.

But I do not try to make 10% per month. I spend a significant portion of premium collected on insurance. That cuts down my profit potential. I am more conservative. If you are more aggressive, sure you can make a lot more than I do. With extra risk.

Discussing how much anyone makes is ridiculous, and I should not have replied. It truly depends on the risk you take. If, for example, you use portfolio margin, you can carry positions about 4x larger than if you use Reg-T margin. If you are profitable and quadruple your size, an original 2% return becomes 8%. .

But with portfolio margin - and especially when fully leveraged, the risk is enormous. One bad month can wipe out the account I took that risk for awhile, but changed my mind and am now back to using Reg-T margin. I am much more comfortable with the limits.

Bottom line - anything is do-able. It's just knowing the probability of success and how badly you can lose with failure. And choosing which path to take.

I never trade butterflys and have no comment on Mark's point of view.

Mark W
 
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