The only thing I know, is that I really know nothing The kid will be fine, he is not going to lose much with me as he learns a few tricks, that is a guarantee. J_S
Wow Ken im glad I can get your opinion considering how long you've been in the business. Thanks for the advise!
I have a similar problem but it is a little different from yours. I will take a trade no matter what, if I see the setup. My problem is sometimes the market will try to fakeout bears into covering by taking the market for a bounce for better liquidity such as recent Friday or 8/19 after FED announcement. Just because you knowthe market is going down doesn't mean it's going straight down. My weakness is I start to doubt my position when the market starts to bounce huge counter to my directional bias. I consistently doubt my positions with market action but sometimes it pays to be bold.
Yeah I hear ya. But the line between being bold and being reckless is a fine one. Being bold is setting a stop or an "out" and sticking to it. That's a great thing. Thinking that you "know" the market is going down and saying "screw it, I am not getting out" is reckless. Trust me...been there. Years ago I would turn 5 point ES losers into 15 Point ones. I think most traders have done this type of reckless stuff. Of course when trading with that mentality we don't think about those. It's the ones that go from 5 point losers, to 15 point losers, to 5 point winners. The problem is those trades in my opinion don't happen a lot. Even when they do, trading like that is a free trip to AdiosAccountVille. You need 3 of those to cover one losing trade. No bueno.
For your bankroll avoid stock indices. DO the rest...seasonal spreads, calendar spreads etc. There are lots of books....
Now that is so obvious, why didn't I bother to do a bit of serious searching - I said I wud never buy any trading realated material again, but 2 have now caught my attention - thank you for pointing me in the right direction and I will let you know what I think, as many are talking about other books and courses, but you could well be 100% correct and most are just "looking" in the wrong place for the "right" information. This subject has always been of interest to me but I never really gave it some serious attention - I shall now do so, as it might well suit my current situations You now have 2 followers, and I only follow anyone who I think is really worth following, meaning, if they help me get a better understanding of what it is I am trying to understand so that it makes me some money J_S
There is a database of seasonal spreads and my book (yes, I did write the one I linked) contains a large segment of that. There used to be a service of this database called spread scope but it is defunct by now.
Just as well I didn't say I was gona "find" it on the internet..lol That is handy, as I will definitely have some questions for you - I will order it tonight. J_S
HW, I have a question and would like to see what your answer will be? Say I want to go long the AAPL call as follows - Oct 02'15 115 Call @ limit 0.65 AAPL currently @ 112.72 My loss is capped at $65 per contract plus commission - to keep it simple we will say 1 contract - so total risk is $66.09 but we will forget about commissions for this question. How can I protect my downside risk of $65 for small money (say round $20) by going long an option on another instrument, in case AAPL falls and does not come back up before expiration next Friday? I do not want to use a stop order for this trade, but am willing to pay a little bit more for my other long so as to part protect my $65, so if my long call expires worthless I will have made some money on my other trade in the meantime, as if AAPL falls my other trade should go up and I will close that out for a profit to either offset some of my loss, or even make a profit - and if AAPL rallies after that before friday, I might even make more profit? I can not sell calls or puts in the account - hence any trade has to be long only. J_S