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jeffalvinson
Registered: Nov 2006
Posts: 453 |
11-04-12 01:45 PM
Quote from trader198:
MT is in UPTREND? are you blind?
I just hide some place and laugh
trader198,
Read the date (2/21/2012) when I entered that MT trade and then look at this attached chart of MT on 2/21/2012 (the trade entry date). Its a 3 month chart starting from December 1, 2011 to February 21, 2012.
At that time (over 8 months ago), MT was in a short term uptrend.
jeff
 mt 12_01_2011 to 02_21_2012.gif
This has been downloaded 53 time(s).
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TraderBoy23
Registered: Sep 2011
Posts: 88 |
11-10-12 03:28 AM
Quote from Bradson Petrog:
I want to have many contracts to begin with, so that I can sell some when the 20-30% gain comes, but I can also hold on to some in case the stock goes skyward.
Dear Abby, what should I do? [/B]
Firstly, you should be pretty happy with a 20-30% gain. Most people would kill to consistently hit this number on an annual basis. Second, as mentioned from put seller, managing risk should be your first thought. Think, "how much can I lose?" Rather than, "how much can I make?"
Some simple option adjustments can accomplish your goals. You could do spreads from the start for one. Or, if you prefer to trade with outright calls/puts you could establish a "profit collar."
Once your calls are up 30% simply sell a higher strike call and buy a lower strike put. Little room to the upside, cushion on the downside
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Put_Master
Registered: May 2009
Posts: 1029 |
11-10-12 04:29 AM
<<< Firstly, you should be pretty happy with a 20-30% gain. Most people would kill to consistently hit this number on an annual basis. Second, as mentioned from put seller, managing risk should be your first thought. Think, "how much can I lose?" Rather than, "how much can I make?" >>>
Not just how much can you win or lose, but what does "common sense analysis" tell you, is the "probability" of the trade winning or losing.
Afterall, the higher your % return goal, the lower your "probabiltiy" of actually achieving it.
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