Trading mentor and real answers
- Thread starter jaytrader100
- Start date
Quote from Razor:
Hi, interesting thead Jay and interesting post Pita. I like your positive outlook by saying anyone can become a trader and that limitations on what we can achieve only exist as far as we create them in our minds (if I interpreted what you were saying correctly).
Did I understand you correctly when you said that you think buying call options on equities and indices is the best method out there and nothing else comes close ? Perhaps I have interpreted this incorrectly as wellAnyway, if that is indeed what you meant I find it very interesting as most would argue this is one of the worst strategies out there (I am not saying it is just saying what I have heard / read over the years). I am curious for you to elaborate on this on things such as do you buy in the money calls or out of the money, with the trend on a stock that is making higher highs and higher lows or do you attempt to catch bottoms on a stock or index making lower lows and lower highs, do you day trade and end up back in cash at the end of day or do you look to hold for a period, what time frame charts do you watch, do you use indicators or pure price, do you look at fundamentals or news....OK, I think I have taken up enough space on this thread....thanks again.
Cheers
Hi Razor,
when daytrading then at the money or slightly in/out of the money. Trading from the daily chart I use mostly slightly ITM but depending if there is an attractive strike near the current price level and if not I take very small size or skip the trade at all. From the weekly chart I use out of the money and sometimes (rarely) spreads. Always with the trend and no indicators. Hope that helps and sorry to Jay for distracting from the thread topic.
Jay,
keep in mind i am mentally challenged on how to do some prep work before placing a trade, thus my asking basic questions.
1.) risk/reward - can you please explain how you determine the reward part in general terms. Is it simply buying at support and the reward would be resistance - as an example? gut feeling?
1a.) most risk/reward reading that i have done always show the calculation AFTER the fact. The risk portion is done prior and i believe i understand this part. If you have a stock at $10 how do you know that your risk/reward is 1/1, 1/2 or 1/3 or whatever?
2.) position sizing before placing a trade - by the time i view the chart, some past history ( SEC filings), and plop numbers into excel to calculate the amount of shares to buy - the stock has usually already made its move, while i stare at the screen frozen. I have never seen a professional traders setup and just wondering if this just all comes naturally or does the execution speed come with time due to experience?
thanks
keep in mind i am mentally challenged on how to do some prep work before placing a trade, thus my asking basic questions.
1.) risk/reward - can you please explain how you determine the reward part in general terms. Is it simply buying at support and the reward would be resistance - as an example? gut feeling?
1a.) most risk/reward reading that i have done always show the calculation AFTER the fact. The risk portion is done prior and i believe i understand this part. If you have a stock at $10 how do you know that your risk/reward is 1/1, 1/2 or 1/3 or whatever?
2.) position sizing before placing a trade - by the time i view the chart, some past history ( SEC filings), and plop numbers into excel to calculate the amount of shares to buy - the stock has usually already made its move, while i stare at the screen frozen. I have never seen a professional traders setup and just wondering if this just all comes naturally or does the execution speed come with time due to experience?
thanks
Hello guys (Jay, Pita, Imagine and the others),
I was in a whole a fey days ago. I tried to practice TA since logn time ago and I got to conclusion that it does not work. But, due to the contacts from the ET forum with several brave guys, I have a real support from them. Not I have to practice this. Before I was like a robot, just applying the TA, without thinking. But it does not worked for me. One must read and understand why the price move and how this may continue.
Anyway I thing that Imagine is right - very good support for novice traders will be if you Jay publish your trades with some comments on this. This will help a lot and proffetional rare do that.
(by the way I could not reached you Pita by e-mail)
If I need further support, I'll contact you Jay.
All the best.
I was in a whole a fey days ago. I tried to practice TA since logn time ago and I got to conclusion that it does not work. But, due to the contacts from the ET forum with several brave guys, I have a real support from them. Not I have to practice this. Before I was like a robot, just applying the TA, without thinking. But it does not worked for me. One must read and understand why the price move and how this may continue.
Anyway I thing that Imagine is right - very good support for novice traders will be if you Jay publish your trades with some comments on this. This will help a lot and proffetional rare do that.
(by the way I could not reached you Pita by e-mail)
If I need further support, I'll contact you Jay.
All the best.
response: imagine
I do not have time to answer all of your questions in writing, so if you want a more in depth discussion feel free to e-mail me.
a professional set up most likely looks much the same as yours.
except.. maybe a screen or two more and back up computer that is online thru access opposite of main computer. Phone line direct to pit for givu up trades if power should go out. hwever 30 min back up aps system as well but only powers 1 screen .. trading program..
platforms vary from simple.. manexpress
CQG, TT, x trader onyx , redi etc.
as far as reward.. base it on what I get out of a trade.. I normally and i use that lightly use a hard stop for full position, and a trail for other 1/3, quick profit on the other 1/3, and a break even stop on the last 1/3 rd. many times exit MOC on last 1/3rd.
As far as position size that depends on what I am doing in the market .. sometimes I add to reduce my average price and sometimes I add to winners .. just depends on what I see as far as the market conditions.. there really is no "hard rule" for any of this.. if there was we would all be using it, thus the market would nto have anymore inefficiencies for us to exploit.
I do not have time to answer all of your questions in writing, so if you want a more in depth discussion feel free to e-mail me.
a professional set up most likely looks much the same as yours.
except.. maybe a screen or two more and back up computer that is online thru access opposite of main computer. Phone line direct to pit for givu up trades if power should go out. hwever 30 min back up aps system as well but only powers 1 screen .. trading program..
platforms vary from simple.. manexpress
CQG, TT, x trader onyx , redi etc.
as far as reward.. base it on what I get out of a trade.. I normally and i use that lightly use a hard stop for full position, and a trail for other 1/3, quick profit on the other 1/3, and a break even stop on the last 1/3 rd. many times exit MOC on last 1/3rd.
As far as position size that depends on what I am doing in the market .. sometimes I add to reduce my average price and sometimes I add to winners .. just depends on what I see as far as the market conditions.. there really is no "hard rule" for any of this.. if there was we would all be using it, thus the market would nto have anymore inefficiencies for us to exploit.
reply : CFERRET
I am not selling anything. I read some of your posts on FX trading.. and you picked up 4 ticks! wow.. because you said you exited early... happens all the time to all traders.. DISPOSITION EFFECT. I direct you to ssrn website and search for disposition effect. It might help you hold onto your winners longer.
The good news is you made a lil dough and you understand your mistake and you were willing to admit it and most importantly it is done and over with and it seem slike you dealt with the lost opportunity of more profits very well.
Good luck to you
one other thing.. i would highly recommend you trade FX futures which are 90 % electronic at the CME. My cousin traded british pound at cme pits all thru the 90's. He quit tradign pound in 1997 and moved to Nasdaq due to dropping pit volumes.. also your money is not "safe" at the unregulated fx firms which do not segregate funds and are undercapitalized. I als saw how long you trade.. man 8 am to 9 pm di dI read that correctly.. I would think you could up your size and make just as much money in 5 hours instead of watching that long in ordr to meet your dollar goals. Good luck to you.
I am not selling anything. I read some of your posts on FX trading.. and you picked up 4 ticks! wow.. because you said you exited early... happens all the time to all traders.. DISPOSITION EFFECT. I direct you to ssrn website and search for disposition effect. It might help you hold onto your winners longer.
The good news is you made a lil dough and you understand your mistake and you were willing to admit it and most importantly it is done and over with and it seem slike you dealt with the lost opportunity of more profits very well.
Good luck to you
one other thing.. i would highly recommend you trade FX futures which are 90 % electronic at the CME. My cousin traded british pound at cme pits all thru the 90's. He quit tradign pound in 1997 and moved to Nasdaq due to dropping pit volumes.. also your money is not "safe" at the unregulated fx firms which do not segregate funds and are undercapitalized. I als saw how long you trade.. man 8 am to 9 pm di dI read that correctly.. I would think you could up your size and make just as much money in 5 hours instead of watching that long in ordr to meet your dollar goals. Good luck to you.
Quote from cold:
have you guys ever experienced what its like to not care if you live or die
it is an interesting most liberating feeling
I just don't know
Before I thought you just a wanker but you are a cunt.
I have stage 4 melanoma so I go through that shit everyday you come on here taking the piss makes me want to beat the fuck out of you you prick. Any chance you live in Sydney fuckwit?
If you're not selling anything and really started a thread to help people, then my apologies. I'm so suspiciouis, cause have seen many many threads like this on ET and the rest of the Internet and know what they end up like for many newbies in PM, IM or phone talks later.
As for my thread - yes, I have a discipline problem, will check what you recommended, thanks for it...
I'm working on my discipline very hard every day and every day brings some new experience.
P. S. Even trailing stop as aggressively as I did works long term, but I just find too aggressive trailing not optimal for my performance.