Big Board Day Traders

[boca_bobby]

Now I think we're onto something. But after this post I will be moving all my info to the other board. I would like to invite everyone to follow us to a brand new board where we plan on discussing the tools used for making huge gains.

http://investorshub.advfn.com/boards/board.asp?board_id=12050

The only thing I was really worried about with these smaller pinchers is the open interest. You see we have to be able to sell our contracts when we want to sell. Some of these pinchers may only have a few hundred open interest contracts at any one time. Our gains will suffer if we can't get out. Liquidity is the mane of the game here.

In the casr of HWAY, we may not have had a problem since I see the March contracts you spoke of had about 1500+ contracts of "open interest." We need to take these gains in small bites.

I say take no more than 10 contracts at any one time no matter how attractive. I have noticed that the gains for us have been 10 fold compared to the pure stock play. If we are looking for 3%-5% gains on a stock play, we should be looking for 30%-50% gains on the option play.

What is really needed is a risk management system. When I play a pure stock play I am willing to risk one dollar but I better have a targeted reward of $3 or better! If not why would I risk it? There are better opportunities than thos that pay less than a 3:1 ratio!

It's funny that you brought up HWAY. I was tied up with AAPL and making huge gains when HWAY dropped like a stone. When it was in the $28 range I wanted in but had so much tied up with AAPL and I had all of my attention watching it. It was the right decision but never stops me from being greedy! LOL

On the flip side, RHD was set up the same way as HWAY. I did get in on that falling knife! OUCH..... I lost a little too much on that one. I should have waited for it to reach bottom and come back with a green day before looking to get in. Bottom line is that as long as each month my portfolio is getting greener we are working in the right direction.

I am off to the "Big Board Toolbox." See ya there!

http://investorshub.advfn.com/boards/board.asp?board_id=12050

Boca_Bobby