70% success rate Index Options strategy

Discussion in 'Options' started by rajesheck, Sep 20, 2016.

Your success rate?

  1. 70%+

    9 vote(s)
    60.0%
  2. 50%+

    2 vote(s)
    13.3%
  3. Less than 50%

    4 vote(s)
    26.7%
  1. Xela

    Xela


    People have been saying this to Rajesheck since he started posting here. He ignores it.

    It's a shame, in a way, because some of his misunderstandings about trading are so fundamental that he could actually benefit quite a bit by reading the responses to some of what he posts ... but ironically enough, it seems he's interested only in "teaching", not in "learning".

    You'll look a long way, actually, to find a more clearcut instance of the Dunning Kruger effect.
     
    #41     Dec 18, 2016
    JackRab and victorycountry like this.
  2. ironchef

    ironchef

    Can you help me out here, can you expand your comments on trading fundamental as to what they should be? I read lots of books on day trading but none of their methods worked for me when I tried them out. rajesheck's momentum approach seemed to make some sense to me. Of course the devil is in the details.

    By the way, why day trade options?

    Regards,
     
    #42     Dec 18, 2016
  3. Xela

    Xela


    Sorry for the ambiguity: I meant "basic", when I said "fundamental" (I wasn't referring to fundamentals as opposed to "technicals").



    No idea - sorry. I'm not an options trader.
     
    #43     Dec 18, 2016
  4. JackRab

    JackRab

    3x profit and 7x SL... so that means the profit target should be 7/3= 2.33 x the loss with SL.

    So @ironchef , there's an example of a very basic/fundamental trading error.. A lot of people here on ET are just here to shout incorrect shit onto the internet... never understood why... you seem very eager and genuinely interested to learn, so first thing to do is filter out the rubbish... this is very possible one of those rubbish threads. ;)

    And indeed... why daytrade options, since they are less liquid/higher cost/wider bid-ask spreads...
     
    #44     Dec 18, 2016
    ironchef and Xela like this.
  5. Day trade options because markets can be choppy , stops get hit fast .Options give you time to hold your positions .Weekly options are good for directional trades.

    Day trading does not work for most , only for very patient traders

    https://www.elitetrader.com/et/threads/profitable-day-trading.305142/
     
    #45     Dec 18, 2016
  6. Creative people, though minority, are not alone. :)
    https://www.elitetrader.com/et/thre...g-school-and-work.304372/page-16#post-4375997

    Creativity test :
    http://braintest.sommer-sommer.com/en/

    http://www.huffingtonpost.com/marty-zwilling/is-an-ideal-entrepreneur_b_5155730.html

    We can see analytically oriented people arguing more firmly about what is right and what is wrong.

    On the other hand creative people don't believe in rigid rules and understand that there are innumerable ways to do the same thing and that there is always scope for improvement.

    We won't often see creative people indulge in arguments on who is right.

    In trading there is nothing right or wrong until a trader makes enough money.
     
    Last edited: Dec 19, 2016
    #46     Dec 19, 2016
  7. ironchef

    ironchef

    When the market gets choppy, the bid/ask spread in options get wider, volatility gets higher and to open and close an option trade everyday and make money is much more difficult than day trading the underlying where you only need to "guess" the direction. In day trading options you also have to deal with the bid/ask, time decay, volatility, vega, gamma.... all within a day? I find that very very difficult.
     
    #47     Dec 19, 2016
    JackRab and Xela like this.
  8. .Weekly options are good for directional trades.lowest premium to reward ratio
     
    #48     Dec 19, 2016
  9. ironchef

    ironchef

    Appreciate your coaching. I left my ego home when I signed up because why bring it to an internet forum? The best trading knowledge I gained from ET were actually reading carefully between the lines of some of the posts. There are some really really good pro traders here and you know who you are.:thumbsup:

    As to the specifics of the recipe mentioned here, I looked at applying it to the equities I normally traded, let's just say I think you are more correct than the OP but I appreciate him sharing his method.

    And I tried to give back and to help here and there when folks asked for comments.:)

    Regards,
     
    #49     Dec 19, 2016
    JackRab and Xela like this.
  10. JackRab

    JackRab

    Awesome! Let's make ET great again!!! :D
     
    #50     Dec 19, 2016
    ironchef likes this.