Professional Trader - Ask your questions here for the next few days...
- Thread starter DisciplinedHedg
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Let's assume I sell 3 naked call options on the S&P 500. To protect or hedge my position I would want to be long the es future.
1) Would I go long only when my indicators tell me to go long.
2) Go long when the call position starts to go against me.
1) Would I go long only when my indicators tell me to go long.
2) Go long when the call position starts to go against me.
Hi DH and thanks for sharing, just for my clarification and education, you said you generally hold your options until expiration but you also said you are often in 100% cash. What is the % number of options you hold until expiration. On average.
You also mention you use cash ES/nq etc to hedge the futures options. To hedge do you beta weight? use deltas? what is the ratio of hedge to option? Say you sell 100 Sept 1000 ES (futures options) calls...market looks like its really going to climb do you just bail or will you buy 10...20...ES"s?
thanks
You also mention you use cash ES/nq etc to hedge the futures options. To hedge do you beta weight? use deltas? what is the ratio of hedge to option? Say you sell 100 Sept 1000 ES (futures options) calls...market looks like its really going to climb do you just bail or will you buy 10...20...ES"s?
thanks
A compendium of most of the OP's recent posts.
I view the market as a market of buyers and sellers. So, for me, I tend to think that for my buy to be profitable, I have to either buy before everyone else and/or make sure that there are a sufficient amount of buying after me to be profitable.
For me to do this, I try to figure out the buying behaviour of others. To me, that is psychology and very important.
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I know of traders who are purely systematic and psychology is of little importance to them. And it works for them.
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Price is usually the ultimate determinate of whether I am correct or not, so I try not to argue with it or trade against it (average down - unless that was my original intention).
Yes, I much prefer to average in when the price is moving in my direction, even if I have to pay up for it.
I don't have predetermined profit targets. When the market looks like it is undergoing a change in character, I will usually adjust my positions accordingly.
Options writing is part of the profits but not all of it.
Watching the market intraday gives me the most comfortable feel for the market.
I watch the market intraday as much as I feel is necessary. There are days with very little volatility and range, for example, and in that case I would just note the close.
I've discussed my holding time previously. Scaling is something I do almost always, both entry and exit.
What do you consider the most basic requirement for an ordinary Joe Soap trader to have in order to make better trading choices? --> âClarity of mind.â
The major trend of the market is most important. And support/resistance levels are important. I derive those levels not from the chart, but from how I remember the price behaving at those levels.
What comes to mind is eliminate what is hurting your trading.
I have looked at insider trading over the years and haven't found it particularly useful so I only look at it on a few occasions.
I am constantly monitoring market sentiment.
I don't focus on return at all, only as a barometer of whether things are working, not as a goal itself.
how do you choose which strikes to sell when you have confidence in where markets is going?
âMainly risk/reward. Risk is more important than reward. One of the first questions I ask is what is the likelihood my position will be wrong.â
I think it's a very good question. A successful trade to me is one in which I've captured the opportunity and IMO correctly evaluated the risk/reward.
when do you feel like you are overtrading? --> âI tend to look at how I trade relative to opportunities, and then whether or not I traded those opportunities correctly or not.â
As I said before, most of this stuff is Trading 101. Some is downright juvenile.
I view the market as a market of buyers and sellers? please...
But a number of paper traders have kind of lost their self-composure falling all over someone they never met for advice, pretty much all of which is posted here daily. S/R!!! Price!!! Clarity of mind!!! Woooow..... aesome dude... Not.
Saying psychology is 90% is really out there. When you go to the casino, psych does nothing to overcome the house edge. A pro's number one friend is an edge and #2 friend is money management. Psych is way down the list.
There isn't a single trader here who will seriously outperform over the long term with 90% psychology. Almost all traders lose, because they have no edge followed by bad money management. A depressed trader with edge+MM can trade. A confident trader missing either will be eaten alive. This is like 70% a real edge, 25% MM, and maybe 5% psychology
Not attacking the OP. But he was the one to anoint himself as the pro - available only for a few days. So far, there is little to justify the worship.
To be a successful trader, you need to approach anonymous posters with skepticism and caution.
Where is the doubt? Where is the due diligence? Madoff's customers probably did more investigation than some of the lonely eyes lavishing their heart to someone they never met.
I view the market as a market of buyers and sellers. So, for me, I tend to think that for my buy to be profitable, I have to either buy before everyone else and/or make sure that there are a sufficient amount of buying after me to be profitable.
For me to do this, I try to figure out the buying behaviour of others. To me, that is psychology and very important.
-----------------
I know of traders who are purely systematic and psychology is of little importance to them. And it works for them.
-----------------
Price is usually the ultimate determinate of whether I am correct or not, so I try not to argue with it or trade against it (average down - unless that was my original intention).
Yes, I much prefer to average in when the price is moving in my direction, even if I have to pay up for it.
I don't have predetermined profit targets. When the market looks like it is undergoing a change in character, I will usually adjust my positions accordingly.
Options writing is part of the profits but not all of it.
Watching the market intraday gives me the most comfortable feel for the market.
I watch the market intraday as much as I feel is necessary. There are days with very little volatility and range, for example, and in that case I would just note the close.
I've discussed my holding time previously. Scaling is something I do almost always, both entry and exit.
What do you consider the most basic requirement for an ordinary Joe Soap trader to have in order to make better trading choices? --> âClarity of mind.â
The major trend of the market is most important. And support/resistance levels are important. I derive those levels not from the chart, but from how I remember the price behaving at those levels.
What comes to mind is eliminate what is hurting your trading.
I have looked at insider trading over the years and haven't found it particularly useful so I only look at it on a few occasions.
I am constantly monitoring market sentiment.
I don't focus on return at all, only as a barometer of whether things are working, not as a goal itself.
how do you choose which strikes to sell when you have confidence in where markets is going?
âMainly risk/reward. Risk is more important than reward. One of the first questions I ask is what is the likelihood my position will be wrong.â
I think it's a very good question. A successful trade to me is one in which I've captured the opportunity and IMO correctly evaluated the risk/reward.
when do you feel like you are overtrading? --> âI tend to look at how I trade relative to opportunities, and then whether or not I traded those opportunities correctly or not.â
As I said before, most of this stuff is Trading 101. Some is downright juvenile.
I view the market as a market of buyers and sellers? please...
But a number of paper traders have kind of lost their self-composure falling all over someone they never met for advice, pretty much all of which is posted here daily. S/R!!! Price!!! Clarity of mind!!! Woooow..... aesome dude... Not.
Saying psychology is 90% is really out there. When you go to the casino, psych does nothing to overcome the house edge. A pro's number one friend is an edge and #2 friend is money management. Psych is way down the list.
There isn't a single trader here who will seriously outperform over the long term with 90% psychology. Almost all traders lose, because they have no edge followed by bad money management. A depressed trader with edge+MM can trade. A confident trader missing either will be eaten alive. This is like 70% a real edge, 25% MM, and maybe 5% psychology
Not attacking the OP. But he was the one to anoint himself as the pro - available only for a few days. So far, there is little to justify the worship.
To be a successful trader, you need to approach anonymous posters with skepticism and caution.
Where is the doubt? Where is the due diligence? Madoff's customers probably did more investigation than some of the lonely eyes lavishing their heart to someone they never met.
Hat a joke thread. The guy obviously is some kind of viral marketer. Scubajoe. Gimme a break. Go away scammer slammer fony baloney
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