Oh My God - Not Again

Discussion in 'Options' started by forex-forex, Sep 8, 2007.

  1. After MY SBUX trade I took time off and just finished blowing out my account a 2nd time to the tune of $30,000, this time with calls on ICE.

    SBUX down over $10,000 and now ICE another $30,000 loss. I GIVE UP.
     
  2. Please PM me your next option trade.

    Thanks.
     
  3. ICE! Say no to drugs, m'kaaaay!
     
  4. mde2004

    mde2004

    you are a gambling fool. Nice try, maybe next time you learn. :p

    Sorry, but next time just take your money to the roulette table. Better odds moron.
     
  5. Sanjuro

    Sanjuro

    You should've shared your ICE trade with us for opinions when you bought the calls.

    Please remember ET next time you put on the 50k easy money trade.

    Good Luck!
     
  6. Hello. I am willing to pay good money for a service that fades your trades. Consider that as a new line of business for you, your track record is impressive and to lever 2x the inverse of your trades would be a very lucrative line of work, indeed.

    :(
     
  7. mde2004

    mde2004

    I agree, nothing like 100% no risk trades that fade goons like him.
     
  8. asap

    asap

    what a bunch of nice guys here.

    :D
     
  9. Tums

    Tums

  10. Forex,

    I sympathize with your decision to quit.
    When I was first learning to trade options, I blew out 2 accounts in the first year!
    Then I decided it was time to stop trading and start learning.
    Here what I learned in 10 years of option trading:
    1: "Money Management and Trade Management are just as important as a good stock or index pick."

    Example:
    $10,000 Option Account.

    A: Never use more than 10% of your total option account per
    trade.

    B: Have a profit goal, a stop loss amount, and a time limit established before you enter the trade.

    C: Do not allow the stop loss value to be higher than the profit value. This is the Reward to Risk Ratio.
    The Reward to Risk Ratio of each trade I do is determined by
    the Win/Loss Ratio of that individual system's trade.
    I do at least 2 different kinds of trades:

    1: High Win/Loss systems (W/L: 75%) trades that produce frequent trades and Modest Profits. With these systems I can afford a Reward to Risk Ratio of roughly 1/1.
    Example for a 12 trade High W/L method month:
    9 winners at +30% profit = +270%
    3 losers at -25% loss...... = - 75%
    Gross Monthly Profit........ = +195%.
    Because only 10% of the option trading account is used for each trade, to determine the total account gain you simply move the
    decimal point over to the left by one place:
    +195% = +19.5% account gain.
    "Most importantly, with a -25% stop loss you do not lose more than 2.5% of your total option trading account."
    "That means it would take approximately 40 consecutive losing trades to wipe out an account!"

    2: Infrequent Large Gain trades which occur a few times a month
    at key turning points in the market.
    These have a lower W/L ratio (W/L: 50%), but the Reward to
    Risk Ratio (4/1) makes up for the low W/L ratio.
    Example of a 4 trade Large Gain method month:
    2 winners at +100% = +200%
    2 losers at -25%.......= - 50%
    Gross Monthly Gain...= +150%
    +15% account gain.

    I use I.B. bracket orders for all trades.
    Bracket Order Example for High W/L Method:
    Buy Limit: 2.00
    Sell Limit: 2.60
    Stop Limit: 1.50
    Click transmit and walk away.
    2 to 3 day time limit.

    Bracket Order Example for Large Gain Method:
    Buy Limit: 2.00
    Sell Limit: 4.00
    Stop Limit: 1.50
    Click transmit and walk away.
    4 to 5 day time limit.


    I hope that was helpful.


    Jeff
     
    #10     Sep 8, 2007