I am back to trading after a break. I consider myself a beginner. I trade major patterns, such as ascending triangles and head-shoulders. I mess up every day, but learn a lot too. I will post my trades and my reasons here, if nothing else just so I can look back later and see what I have done wrong or right. I would greatly appreciate any constructive criticism. Please no trashing TA. If you don't like TA just ignore me. Thanks!
June 4- Bought ASD Oct 80 call@1.45. Reason, huge ascending triangle with confirmed penetration on both weekly and daily charts. Target price of $90.
How long have you been trading ? What are you trading ... stocks, options, or futures ? What is your time frame ... daytrading, swingtrading ... ?
I am glad to see someone posting a journal again. Can you include the charts you used to make your decision? Thanks!
I have traded stocks for about 2 years(I'm a youngun). I am completely new to options, but limited capital makes them attractive. I trade for major moves and am willing to hold for a few months if need be. I will post my charts once I figure out how. I saw a thread on it just now so I will go read it and then post my charts.
Yesterday, June 3, I bought SDS July 22.5 call@2.26. Inverted head and shoulders, a little sloppy, but I like it. These are my only trades since my return.
My advice is never to buy out of the money calls for sheer speculation unless they are in the months further out.
Trajan, I don't plan on buying very many out of the money options, but in this case I did because it has a delta of 37.5, and for how cheap this option is it seemed worthwhile. Today, on a 1.4% stock move my option is up 20% so it is providing excellent leverage. I know today is an unusually good market day so this may be the reason though.
6/5 Sold SDS and ASD for 19% gain. I changed my mind about holding them because I don't think this current rally is sustainable. I am waiting for a resolution in either direction before taking too many long-term positions. Bought EAGL AUG 15 Put @1.16. Reason: Descending triangle, with intraday penetration.(I am betting on a downturn in the market).