To Trade or Not to Trade?

[profitlocker]

Do you mean that one should develop a strategy where if you predict a gain using a long time frame AND also predict a gain using a short term time frame, then you go long. Only if data analysis from both time frames (thru whatever logic) concludes the same point should you take up a position?

Yes. Multi-dimensional analysis allows you to see what kind of animal you're dealing with

 

[ironchef]

Chef, I don't know much about them.

Thanks for your reply. The reason I asked is none of the technical analysis worked for me. They worked well when I used them to back test. Going live they are not reliable at all.

 

[OddTrader]

It depends. I was doing a lot of selling, then the market changed and I started doing more buying. I've had a couple friends wipe out their accounts selling naked positions, so I backed off of selling in this chop.

Short Puts (not much opportunity in this choppy market)
Debit Spreads
Credit Spreads
Iron Condors
Long Calls
Long Puts

Just my 2 cents:

Many books teach that you need to select wisely the right strategy for the right scenario currently appearing to you!

An alternative approach would be that you need to choose and focus on a minimal number of safe strategies to match the reliable risk/reward scenarios indicated/produced in your trading system.

Options can be a very complicate and risky instrument, afaik, therefore not too many traders, I would guess, are able to manage safely all options strategies that can be found in those books.

Being both a good seller and a good buyer of options at the same time, to trade all market scenarios, would be a very touch challenge to many traders!

Must be very focus and knowledgeable - as a minimum requirement!

Good luck!

 

[Cswim63]

Yes. Multi-dimensional analysis allows you to see what kind of animal you're dealing with

There's another side to seeing the bigger picture. Most people, actually all of us to some degree, carry our beliefs with us when we look at the markets. Until we break through our conditioning, we really don't see what is in front of us, rather a concept, a derivative of the actual thing which is itself in constant motion beneath the surface. Until the thinking mind which is usually living in the past or future gets turned off, true perception is impossible.