Risking 1% of your total equity. Does this refer to the stop?
- Thread starter rogersmithiii
- Start date
%% Another danger =====some stuff moves so little; IBD warned ''when you snooze, you lose''In that case sir, I am in big trouble! I never had a boring day trading options. They were like roller coaster rides, except I never knew when the next gap up/down would be around the corner.
Regards,
It is funny, when I had little, I risk great deal to get ahead and thought I had a lot trading stocks, and the account grew, some point I thought I had less and kept working till I could risk much less and still get decent returns, I now risk 1% or less and never more than 3% total value of entire account. I don't have the patience to trade O'Neil's way, way too much reading, am not a value trader too much, but I do have 50 stocks I trade on regular basis, and expands to 150 as I try to keep same percentage in the market whether long/short.
I don't remember if O'Neal ever did shorting?
First thing I think about when making a longer term trade is how to hedge it, it is more important to me on keeping drawdowns low than making profits each day. If I am not losing much money, I don't have to recover much as those who don't hedge, since drawdowns stay low, I now margin. I don't have to make higher percentage than S&P500 Index to do better, cut drawdown by half or more, have less to recover which automatically make more than Index. Took my awhile to study to do it right for me.
I don't remember if O'Neal ever did shorting?
First thing I think about when making a longer term trade is how to hedge it, it is more important to me on keeping drawdowns low than making profits each day. If I am not losing much money, I don't have to recover much as those who don't hedge, since drawdowns stay low, I now margin. I don't have to make higher percentage than S&P500 Index to do better, cut drawdown by half or more, have less to recover which automatically make more than Index. Took my awhile to study to do it right for me.
I have no idea what the charts were telling me. My head was spinning faster than the blades on a jet engine when I looked at them charts.
Anyway, I just bought some DXCM call options near the close today and kept my fingers crossed.
My rationale had nothing to do with your charts: DXCM is growing at ~20%-30% yoy so eventually could grow out of their losses. Even with the gap down, the IV wasn't that out of line and a quick move in the right direction should allow me to profit and get out quickly. GILD is losing revenue and I have no idea when it will stabilize?
Perhaps you folks can educate me and help me out.
Thanks.
Anyway, I just bought some DXCM call options near the close today and kept my fingers crossed.
My rationale had nothing to do with your charts: DXCM is growing at ~20%-30% yoy so eventually could grow out of their losses. Even with the gap down, the IV wasn't that out of line and a quick move in the right direction should allow me to profit and get out quickly. GILD is losing revenue and I have no idea when it will stabilize?
Perhaps you folks can educate me and help me out.
Thanks.
I have been studying your charts since yesterday. I think I am beginning to understand this set. Based on your charts, if I were day trading I would pick GILD and not DXCM.Mr ironchef, when I asked the men what they were thinking about, this is what they told me !
Do you think they were right in their thought process, or were they really thinking about jumping in
If you didn't day trade, DXCM was a different animal, most of DXCM's gap down was predetermined prior to market open, it didn't deteriorate too much during the day which to me meant the worst (over the next few days) was over and some quick swing profits might be possible?
Am I making any sense?
My charts are purely for daytrading, but can also be used for timing entry for swing or position trade.
Yes..you are making sense.
However, there are many things that can affect a stock price, and it is more than likely just as effective to trade the charts, than try and guess what investors might or might not do based on fundamentals.
Options trading is a different ball game altogether!
What call did you buy for DXCM - strike/expiry/fill price?