7 tips to be a good trader

Sixth tip

Buy high volatility and sell low volatility

At first step junior option traders aim to sell very high volatility (this high volatility is there for a reason which early or late you will unfortunately learn)

Inversely low volatily are allways the highest risk reward for sale; check before that no earnings are coming , dividends, special news, trials or whatsoever. If u want to sell option study carefully the diary

Sorry if I don't respond to your desire for more details (I don't intend to tell u exactly how to do): if u work hard u 'll find by yourself (and u'll get more fun

 

Seventh tip

When trading futures , arbitrage between european, nikkei et us futures during globex.

For instance during european time, if a trend is being underway u very often have time to enter in the us future (allways a lag). However at a certain point every zone/country has its own resistance/support and u should respect them (This is also a very valuable tip)

The most profitable one (the nikkei : may be because I am the only one who does it )

Bibibibibibi

only 3 more tips

 

Eight tip

I'm back
for the last 3 tips.

This one is the most important to make a difference with others

When u feel u have a strong edge in a trade, strong risk reward , don't diversify, put all your money in it,

I personnally use a maximum leverage of something like 15 to 1 to my own assets,

For instance I have been and still am extremely bullish on the Nasdaq 100 for the next 2 years (it could double), Ibought some call NDX June 06 strike 1900 for a notionnal amount of 20 times my fortune, but it cost me only 2.5% of my assets

have a nice holyday

 

Is buying low delta options same as buying high volatility? Thanks.

 

No. Look up / google for their definitions.

 

Sorry, but I think this is a recipe for disaster ...

Also, I'd be very surprised if your prediction on Nasdaq came true. But it doesn't matter if I am wrong because I won't take such a high risk as you recommend, and I'll adjust as conditions'll indicate.

 

You clearly missed the strong risk reward part of his sentence.

 

fortuna wrote "When u feel u have a strong edge in a trade, strong risk reward , don't diversify, put all your money in it".

In my opinion: trading based on your feelings is a recipe for disaster. More: the odds of getting wiped out get very high when you don't observe money management.

Following fortuna's tip/recommendation could cause a lot of pain to unaware newbies that don't have yet the capability to sift through trading gurus' recommendations.

 

Thank you for all the tips especially for the arbitrage between index future contracts at different time zone. I noted you mention buying high or low volatility.

Is the instrument you mentioned considered a second derivative? and what would be the appropriate symbol for trading it?

thanks

 

These are good posts, very helpful. This is why I come to this forum so often.