The Tao of Minimalistic Trading: $300 Daily Profit

One thing I regret though is I was buying IWM calls around /TF 987.3 on weakness but it dropped below for the spike low and had to sell for a loss.

Wasn't persistent enough to believe in my analysis . lesson learned
 
fortydraws said:
Clearly I underestimated that 58.25 as a test target. Stop on the long, in hindsight, should have stayed below that price.

And here is 74.50 by 3PM.:banghead:
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It's a pleasure seeing inside your process. Amazing. Be careful about giving too much away. I have some ideas I want to discuss. Looking forward to seeing more of you on ET. God Bless ET. Hopefully if Baron's willing, this will become the norm rather than unusual. It's clear there hasn't been anyone displaying active trade management, adding size, moving stops and all in realtime ...ever that I can recall in ET's history.
 
Anybody messed with ES calls this afternoon? Went long the 1900 call for next week, ES went up about 10pts, the call went up like 1pt. Was expecting more out of it than that. I got out for a half point profit.
 
FCXoptions said:
Anybody messed with ES calls this afternoon? Went long the 1900 call for next week, ES went up about 10pts, the call went up like 1pt. Was expecting more out of it than that. I got out for a half point profit.
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price goes up, vix goes down, so you gain intrinsic value, but lose implied volatility
 
It was only last Friday that I kicked myself for having broken every rule on the book: overtrading, revenge trading, dumb trading, you name it, they're all there. What makes today even more outstanding is that I've left a ton of money on the table—at least 20 points. As if I had a blinder on, I missed all the reversals. And as if that weren't bad enough, I literally pissed away all the gains. Earlier in the session, I managed to eke out about 15 points. I should have stopped there but I got sidetracked by my former pal, aka greed. From that point on, it was all downhill, happily pouring good money down the drain. This day ends on a downbeat with a loss of 3.25 points or -$162.50.

Code: 
Today's Trade Stat

No. of Trades (Round-trip)*: 16
No. of Winners: 7
No. of Losers: 9
W/L Ratio: 0.78
Avg Gain: 2.82
Avg Loss: 2.55
Cumulative P/L: -3.25 Points

* Breakeven trades have been omitted

$300 Daily Challenge (1/04/16 - 1/29/16)
Winning Days (>= $300): 6
Losing Days (< $300): 4
 
schizo said:
Orderly selling = when noobs bail out
Panic = when institutions throw in the towel
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I've been thinking about this as I'm re-reading it and I'm inclined to go with this idea as well.

The way I think of it is that when the selling is orderly, there has to be someone on the other side to buy in order to complete the transaction. Since most of the trading is by institutions, most of these buy orders have to be by them on the way down. When price starts to plunge, there aren't any offers to buy at any level, and since most buying should be by institutions, it means they aren't around to buy.

When you see stops run in a little mini crash that is very quickly bought up, I think the institutions are ready to load up on contracts for a cheaper price and hence support it. But when price really starts to plunge, the institutions just aren't buying, nobody is buying, so we get the flash crash.
 
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