Limitdown, Were these new traders that you witnessed do this? What kind of size were they trading in order to blow their accounts out that fast? From what I have read on this forum most of the successful traders that post here were trading 50 and 100 lots with a max loss of 50$ per day for a long time before they started to size up and start making profitable trades. So with a 25k account if you started slow like everyone recommends and dont let anyone force you into trading larger size until your ready you could lose literally two straight years in a row before you blow out your account right? What kind of bright person could make those mistakes that early in the game? Forrest
they're only long calendar spreads, not short calendar spreads. if stock goes against me, no big deal. hey, stocks move up and down all day long. its rather easy.
these commodity, industry, metals stocks are so freakin volatile right now, it would be rather easy if i had enuff money for more than one to trade. but oh well, gotta start with what u got. again, jmowery, i caught ur post before u edited. thanks for info. i've been in contact with tradevision. they seemed cool and they are a sub of genesis, a big plus.
I wasn't questioning the calendar being long/short. The efficiency of daytrading options is questionable, to put it mildly, and daytrading spreads makes it twice that. Finally, daytrading calendar spreads where the sole objective is to benefit from time decay in the front-month option seems even more inefficient, but, hey, if it works for you then who am I to argue otherwise.
THAT'S COOL!!! what do u think options specialists do all day long? for instance, they hedge with short stock or a spread leg constantly on a daily basis since they are contrarian trading bastards who have to cover a buy order when the stock is rising by shorting stock, shorting call, or buying put (and, yes, they are not charged commissions). I know, I know, as i mentioned in previous posts, option bid/ask spreads do suck, especially in volatile stocks, but if the stocks move, the slippage shrinks pretty quickly. i love it.
I know what market makers do, but that's not the point. Market makers have the edge of buying on the bid and selling on the ask. They trade for different reasons. Anyway, I don't know what your strategy is so I'm gonna just stop here.
um, all u have to do is have a long leg while u repeat trade the short leg over and over, sell to open then buy to close, wait for stock to move in direction of long leg, then short another leg. or when stock goes in direction of long leg, get out of short leg quickly and let profit ride in long leg. pretty simple stuff. provides great protection, too, in case of stock gapping overnite in direction of long leg. u just have to watch ur trades pretty closely which is what u do with options anyway since they are short term.
Dont you have to take some kind of test....the series 7 exam or something like that to be able to trade with a prop? - nathan
not necessarily. i do have series 7 tho. mr bright from bright trading has helped me now. he is awesome and told me how the business works. i will need more capital as i knew. just trying to gain that buying power somehow. thanks for your help, mr bright. YOU THE MAN!!!!