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Hi JSundi13 - welcome to the board.
I can highly recommend TradeSmartU.com. They have a free introduction to stocks and options that will provide you a thorough introduction. It is free, but you may need to apply for a "scholarship". They focus primarily on trading using technical analysis.
Another resource I am using is TastyTrade.com, however I think they are very advanced. Too advanced for a beginner (even for me). They use a different technique - trading on market volatility and probabilities rather than charts. However, there is a very good Technical Analysis segment everyday at noon-1pm - "Ask Slim".
Good luck to you!
Hi Rayank - Welcome to the board.
If you are pretty sure of the direction, deep in-the-money options with high Deltas can be very profitable.
The most important thing I've learned is to get out if fast if the trade turns badly against you. Then, if you are still sure of the direction, you can rebuy at a lower price or for a longer duration, or move on to something else.
If you find yourself hoping for it to reverse direction, you probably missed your exit.
ivolatility.com has a good options calculator. Good luck to you!
Ditto on Smartone's advice. I also lowered my profit targets on trades to try to get more winners.
Thanks Roy - actually, I would prefer to be better at the short term flips, but my track record is better with swings. The reason I go so far out is to buy high Delta - bigger responses to underlying stock changes. Plus the extra time gives me room to fiddle with the trade. A little more forgiving if I am wrong.
Still love watching you guys trade the short terms, and then checking the charts to see how you did it!
BOT TWTR Oct 18 $55 Put @ 4.35. Looks like it's about to roll over. Potential market driving news: Obama's adddress on ISIS tonite, plus anniversary of 9/11. Market wildcards.
Edit: Lemmings are flinging themselves off the cliff already.
You're rocking it today Roy!
I did a quick scalp on TSLA, but not much free cash available today - stuck in my longer term trades. Lesson learned - save cash for Fridays! Hoping for more downside today. Will check in periodically.
Why on earth are markets up today?
- Russia invades Ukraine
- ISIS atrocities continue
- Stock market very toppy
- Long holiday weekend
What am I missing here? Doesn't make any sense.
Hi Roy,
Thanks for the update. I am, in general, happy with my HP, but now wish I had a bigger screen and faster processor. I also DO NOT like the 8.1 - albatross.
I have gone into highly conservative trading mode because this market just feels too toppy. My new strategy is to buy options at least one month out, with very high Deltas. I am short SPY and IWM, and long NEM.
I have been watching the "Ask Slim" show on TastyTrade.com every day at noon. He is not only an excellent technical trader, but also a cycles trader. I recommend this program highly. The cycles approach adds a new dimension to understanding chart patterns.
This new strategy has dramatically cut my losses, but haven't had any big wins yet. I keep thinking the market will turn over any time, then it creeps up again. However, when it does finally turn, I will be in good shape.
I think today might be the start of the turn. But then I have been wrong a lot in the past two months.
I check the board during the day, mostly am mostly focused on learning from TastyTrade. I am beginning to learn about spreads and straddles, but not ready to make the leap yet.
Take care and thanks for the shout out. Will check in on you guys, especially on Fridays to see your amazing trades.
Regards,
Jane
On Aug 8, 1927, the Dow Jones closed at 180.27. (Aug 7 was a Sunday). Happy Birthday Roy!
I just closed the last of my old NEM position @ 1.14 from .81. Gonna roll it over later today.
I've been trading mostly swing trades Sept 20 or later, with Deltas over 80. Seems to be working better for me. But still enjoy paper trading along with you faster traders.
-Long in MU
-Short BAC
-Long in AAPL - way upside down, but have until Sept 20 for a bounce or to average down.
Regards,
Jane
Belated thanks to SmartOne, Farouk and Roy for your analysis last week. I learned a lot of new things from that, but probably couldn't replicate it at my stage of development. Went almost all cash before the crash, so ready for opportunity.
I have been hanging out at a site called Tasty Trade during the day. Highly recommended, especially the noon to 1pm segment called Ask Slim. - Outstanding technical analysis. The show is taped so you can replay after hours.
Have a great trading day!
Roy and/or Smartone,
Can you please explain the NFLX trade for me? I cannot see what the set up was.
Looking at the 5 minute chart, there were a number of times when the candles dipped below the 10-20 day moving averages during the day. Then they crossed back up.
This is what baffles me about weekly trades, especially on Fridays. Unless it is an avalanche of red, I cannot spot set-ups that are safe enough for a quick scalp, faced with the dreaded Theta rot. They just seem to crisscross the lines willy nilly.
Smart went in around 2:30. There was a hangman that dipped under the 8-13 MA and a slight bump in sell volume, but nothing I would have recognized as a set up.
Are there special trading guidelines for OpEx Fridays? I know these are a lot of complex questions. If you wish, point me to the proper topics online and I will do the research.
TIA and have a great weekend.
Masterful trade Smartone! Very inspiring. Don't know how you do it, but hope to catch up with you some day.
Watching Smart's NFLX trade. Are people still flipping it this late in the afternoon, or is some of the action from folks who want it to expire?
Cannot figure out why folks would buy this late in the day.
HI Gang - check out a great tech analysis show on right now
https://www.tastytrade.com/tt/
Hi Roy,
NEM is a miner that has been in a dispute with Indonesia, which may be settled shortly. It is also a possible acquisition candidate. It has earnings on July 29 which probably won't be good. However, if a settlement with Indonesia works out, or the rumors of buyout strengthen, it could be OK. Otherwise, I will close out before earnings. I have my chart set for both NEM and GLD. NEM tends to move with GLD.
I don't have any position in CWRN in more, but like to follow the soap opera. The Texas court ruled against the former JV partner that has tied them up in court for a couple of years. However, they did not get any damages. A second lawsuit in California is coming up in Sept where CWRN is asking for damages.
The new owner is keeping very low profile, but undoubtedly piling up some ore and waiting for the lawsuits to settle. They will likely change the cusip, take it private, or merge with Navial to get a fresh start.
I lost on my YHOO this morning, but am proud of myself for getting out faster this time. Not fast enough, but faster than usual. The importance of position sizing and protection of capital is finally sinking in.
Usually, when I get into a trade on the wrong side, I stay in denial and hope it corrects. It almost never does. Now I am letting go easier. Not fast enough yet, but easier.
Recognizing just how much of this trading game is psychology. And timing. I have a little cash left for a late afternoon trade. Hoping for a big plunge or surge.
Keep me posted on anything that shows up on your radar!
OUT YHOO Weekly $36 Put @ .05 (-.12)
I've been holding NEM as a longshot hedge for awhile. It's rocking today. Gold miner.
BOT YHOO Weekly $36 Put @ .07 - Av down to .17
BOT YHOO Weekly $36 Put @ .27
Thanks Dot. I have been experimenting with a couple of SMA pairs
4 and 13
8 and 34
Will experiment with this one as well. Crazy market, but kind of fun too.
Sold MU Aug 8 $34 Calls at .90 (.03, small commish loss)
Was looking at the chart, not volume. Still so much to learn.
SNDK fell out of bed this morning. You still holding puts? If so, good on you!
BOT UNG Aug 8 Call $21.50 @ .35
BOT MU Aug 8 $34 Calls at .87
Are you saying BA or market in general? I'm just looking for post earnings short-term plays, up or down.
Have a great trading day.
Thanks Roy - I haven't done well on weeklies lately, but would like to do more with them. More fun than waiting on the swings.
Have a little cash now to play with tomorrow.
See ya!
Out MU Aug 16 $35 Calls @ .60. (+.10)
Didn't break even with the average down, but did mitigate some of the loss.
I was keeping an eye on BA.
A lot of good stocks are getting whacked real hard after earnings reports for what are actually pretty good earnings. I am tracking them and waiting for bounces.
OUT YHOO $35 Call July 25 @ .37.
Yes - with trepidation. I am pretty weak on weeklies.
BOT YHOO $35 Call @ .22
Both drops are right after earnings. Then it bounces back up. In theory at least...
Holding SNDK for a few days as a swing trade. They just announced an acquisition today, which drove the stock down. Looking at the long-term chart, it tends to bounce back well from down gaps. Doesn't generally stay down longer than 3-7 days.
Once the market digests this change, I think it will bounce up again, although probably not as high as earlier in the week.
I could also be wrong. I'm already upside down on it, so hoping to get less upside down. Will see in a few days.
Thanks - I haven't learned to look at that yet. Thanks for the heads up.
BOT MU Aug 16 $35 Calls @ .53
Averaging down a prior trade at .88. New av .70.
35 was probably overly optimistic. Placed a couple of weeks ago.
Similar TA to SNDK
Looking at the 60 min and daily charts because I am swing trading (aug). Here is my reasoning
- On the hourly chart, 8 SMA has crossed 20 SMA
- Stoch is has crossed up
- Bollie squeeze
- Big gap to fill
- However, no volume
Fundamentally a good company that got smacked hard after earnings. Had a long climb up, then got smacked hard after earnings. It's still weak, but ready to climb back up.
What do you see Roy?
BOT SNDK Aug 16 $95 Calls @ 2.16.
Averaging down from prior 3.69 bot 7/17. Now 3.10av.
Wow Roy! What an awesome tool. Will spend some time on this.
I am working to train my eye as well - going back over old charts and trades and trying to identify all turning points. Learning how the MAs, etc can confirm or disconfirm, etc. Setting up "cheat sheets". Also studying trade management.
Thanks for your offer to help. I will certainly avail myself of your expertise. For now, just studying a lot, and watching trades.
Good advice Roy.
I am getting my longer term directions OK, but not doing well on shorter term entries and exits. I go back after the trading days when I have time to try to understand winning trades on this board.
I'm taking good online tutorials on candlestick reading, entry and exit signals by Stephen Bigalow at http://investorshub.advfn.com/boards/post_reply.aspx?message_id=104556910. It's very good - he gives lots of examples.
Thanks everyone for posting your trades, good and bad.