Quote from sfbayarea:
Why are you the most negative guy around? You're pointing out another FALSEHOOD. My biggest pet peeve is someone accusing me of doing something I didn't do or exaggerate something that I did. It's highly offensive. Rarely do I get out with .01 on a trade. When I do, I note it with an asterisk and explained. Do you even read this journal or are you just reading the gains and losses and differences between bought and sold, then making a blanket statement on such? You can go read my posts and it will be obvious what my broker is and you can google their rate easily. Actually I've mentioned it here before about how low they are but you don't care.
I don't care if you trade options. I don't. I don't like options. Black swans is what ruins options because those things are so far out time wise that some bad or good event can sink or jump something in the long run. NO WONDER. I'm really trying to be nice but at this point you're really just trolling. I've asked you several times for chart examples of black swans yet you don't have any. If you're going to make statements, back it up. Bring up examples. That's the right way to have logical discussions. We're coming from different backgrounds here.
We're talking about apples and oranges here. Options is a completely different animal. Please, don't mix mine with yours. Mine is short term, yours is long term. For you guys, everything is news driven and plus options is where you don't risk much as actual straight trading. I can see how your background in options effects what you're saying. Day trading stocks is not the same as trading options. Does anyone else here agree or think they are same?
First off-- u have been advised by me and numerous individuals here numerous times in order to succeed and ensure that u stay in the game, u need to exercise proper position
sizing... yet u continue to think your way is best...and low & behold-- u still arent a profitable trader by any means. Taking a fixed amount of shares with a fixed stop amount
is not what we are talking about...you don't get it!
Second-- u once again are showing how little u know relative to options. I day trade directionally weekly options in high beta stocks with deep ITM calls/puts with a delta typically of .9-1.00 with tight spreads and high volume/OI and very little premium, virtually eliminating my risk exposure to theta and IV. This of course will mean nothing to u. I trade this way becuase I am able to commit significantly lower capital in any given trade than trading the underlying, yet am able to capture virtually the exact same movement 1:1 in the movement of the stock within the option. Why is this important? Because the % return on my capital is exponentially higher...yet my risk against catastrophic loss to my account is non existent in the event a black swan event occurs!
I make my decisions on when to enter/when to exit based on the charts SB....the charts of the underlying! Multiple time frames...trading in the direction of the bigger timeframe trend at price extremes on the smaller time frame at supply/demand...knowing exactly the area on the chart where I am proven wrong...then applying that distance amount to how many contracts in option that will equal my 1R...but only if I have at least 2R profit showing on chart...high probability, highprofit, low risk trades. NOTHING IS DIFFERENT SB EXCEPT THE TRADING VEHICLE, BUT THE TRADING VEHICLE I AM USING HAS ME AT FAR LESS RISK THAN YOU.
As for black swans--I also trade intraday long straddles/strangles near expiration.. my posts in another thread goes into great detail on this-- with these neutral trades a black swan makes my postion a lottery ticket...good news or bad. Trade in the direction of the swan??? When it occurs the train will have already left the station so far past u w/o u on board... Of course if u r in a trade in the right direction...hallelujah...but if your on the other side...oh yeah...u dont need to worry..i forgot.
As for black swan charts-- SB if u must see one--do some research on the flash crash and how stocks were affected FOR ONE EXAMPLE. I state "one example" with emphasis because by the exact nature of a black swan, one cannot simply formulate a basis for what is or isnt possible. Systemic events & company specific events are two types of black swans-- and can produce different results. The point is u need to be prepared for worst case scenarios, and u are anything but. Will u be devastated by a black swan? Probably not...but why not figure out how to minimize your risk so u eliminate it from even being a oossibility? And never ever think news cant hurt u! You could easily be only .25 down on your way to a .50 stop...a stock halt occurs...news is disseminated...and boom you open back up down 10-15%....it happens! Will it? Highly unlikely, but risk is still very real.
Bottom line- your view is simply the belief of a fool...and right now there arent too many out there bigger than you.
