Trade what you SEE!!! So in and out more, leaving trades open leaves you open to said whipsaws, market is too fast and crazy, got to see XXXX is going up, go long and exit when it's no longer going up, don't make it any more complicated.
the problem with the internet is when you ask for trading advice all them losers who can't even beat the index come in with their 2 pennies.... it's obvious for a veteran to see who is just putting in BS, but too bad for the ones asking for advice they can't tell... but that's just fact of life.
Exactly. I trade some instruments with tight stop losses, and others with much wider risk management. The former clearly underperformed this week, because winners that could have been managed in normal conditions were taken out within seconds.
Exactly-- it's smart to use a hybrid approach testing both wide stops small size and tight stops larger size. What I've been doing is setups like gap breakouts, trailing stops on half position (many shook out last week like UVXY yesterday) and lod stops on remaining shares. It's very much a hit and miss market, so the strategy as always is lots of entries with scaling and tight stops... see my journal here for recent live examples. Thrilling but exhausting time to trade, volatile and fun like nightclub hotties
The other day you didn’t even know what price triggered a stop loss and now your slinging shorts and you’re a plunger.. lol..Also there is only 1 person referred to as T’ and that’s Tony Soprano.
I have also been using micros to scalp 40 points here and there. Bottom line, reduce your trade size substantially. At 70 VIX, you only need maybe 1/6 of your average position to generate the same profit during calmer markets. Option liquidity has dried up pretty much everywhere except for SPY. Been selling a lot of SPY calls lately. Short duration. Although I sold a few puts too. On Thursday before the close, I was able to sell SPY 222 puts for 0.71 credit...expiring the next day! Crazy premium for so far OTM. At that price I actually would want to be buying.
I trade of a simple BB 8sma 2.5Dev with a 12sma for direction, either the 8/12sma mid point is my SL or the BB outters, just trade it via M1 but works well on any, that adjusts the SL required, then I don't trade until I've got a SL of <20pts ( normally 12 ), most of the time it's 50+ if not 100 recently, only trading 1am GMT time when it calms down a bit recently
FFS do not sell anything naked -grow up people you are idiots to try and trade this. You simply cannot take from the market all the time. The rubbish traders of the last decade just got their backsides handed to them and good riddance. They thought they were genius. Stay OUT -read a proper book about trading and use your time wisely
This is off-topic... it is something I do not understand... Why do people not take advantage of the volatility? I'm not saying go all cowboy, or all-in, or double-down... nothing like that. But if you've determined something like a 1/6 size position can generate your "normal" take, why wouldn't you take advantage and reduce size by ONLY 1/4, 1/3, or even 1/2. Beyond money attitude, there is personal growth that comes with times like these. It just doesn't make sense to not take advantage, at least minimally. There might even be a new "normal" for the trader. Volatility is equal opportunity... it works on the gain side, the same as on the loss side. Good trading to all.