I first determine the trend mode followed by the phase; accumulation, consolidation, et al..I then look for long/short signal. My confirmation comes from the weekly chart, and entry point by the intraday. In some cases, the intraday may be the sole determinant of my action.
What is your opinion about using stop, stop-limit, contingent, trailing, oto, oco orders? Especially for stop-losses and exits? Thanks.
Good question! Money management in trading is somewhat difficult to teach/explain because I believe it should be based on knowledge and expectations. One of my trading rules demands that I set a stop-loss while another of my rules overrides the need for it. More often than not, I consider trade adjustment (Calendar spread) before stop-loss is considered. My exit plan is to take profits after 40% returns, but sometimes I hold longer especially if the security is trending. In a nutshell, one should be flexible in following rules; and this, I think, should be based on knowledge.
Consider buying the book Options as a Strategic Investment by Larry McMillan and reading it cover to cover. It's $47.25 at Amazon although you can get it cheaper from the used/new section there. http://www.amazon.com/gp/product/0735201978/102-0759596-8913734?v=glance&n=283155&s=books&v=glance SSB
McMillan's book is definitely a great options encyclopedia, but I guess the purpose of this thread is for people successful at making money from options trading to share some of their thoughts (nobody shares secrets). It's like Merriam-Webster's a great dictionary, but it won't make you money as a novel writer.