Princessa, TOS is THinkorswim, it is a non DAT (direct access broker). This broker provides great support and yes as Tingull mentioned it, the software is always getting updated. However, the commissions are way more expensive for options and stocks. It has other limitations as well. Also, if one were to be serious in their trading, I would recommend a DAT. That's where I will move to eventually hopefully. Edit : maybe for those exotic options, one may need TOS. Not sure as never played with exotics before. You mentioned that you trade options. Do you actually just place options for your directional bets without caring about the volatility at the moment? As you know volatility will also cause the option price to increase. Just curious as I started off with options first (not knowing the downfalls as compared to stocks) but am now mainly concentrating on stocks. Thanks.
Tingull and Screenstruck, If you don't mind answering this question. Where did you papertrade in? TOS doesn't seem to have a papertrade simulator. All they have is just a place (ie under analyze tab) for you to enter what you want to buy without the option for you to choose your exits etc. Am I missing something here or is there another papertrade platform provided by them. I would greatly appreciate it as right now I'm back to papertrading mode and am actually doing it with pen and paper. It would be great if I could actually put in these trades in a simulator. Thanks.
With apologies to Gary..... (not to move away from the intent of this thread) TOS only does vanilla options... no exotics. For info on exotics you have to absorb everything written by riskarb. TOS has excellent papertrading. you basically get two logins one is real money and one is a 100k paper trading account. Its absolutely the same in functionality. hope thats clarified things. SS
Tnx for the info. It seems there are still some discretionary things in your trading. Experience is the key here I guess.
I'm using IB. Great and solid support, descent prices (I think) and a good platform (I use QuoteTracker for charting and ButtonTrader for executions).
Screenstruck, 2 logins? Hmm.. I can't remember that. I just started playing with real money pretty much immediately after opening the account. I will ask them when the mkt opens on Monday. Can't believe I went that long without knowing that. Thanks a lot Screenstuck.
yes, i too did more options in the past than i do now, due to pitfalls. i place directional bets, and i know that high volatility makes the option more exxpensive, so on some stocks i would never end up buying the option b/c the premium is too high. i mainly concentrate on stocks now, but i still do options occasionally if i see a good setup. the way i have done options is to look for bottoming on a stock i know really well or go with momentum for a quick trade. both strategies have worked well, but only when i know the stock really well. it's when i don't know the stock all that well that the trade usually doesn't work out, or if i go bottom-fishing and i'm early. then i take my lumps and go home. all in all, i'm better off sticking with stocks.
trying to learn eminis (thus my presence here), but don't think i'll be good enough at it to do many contracts for awhile. would have to get a consistent win rate of at least 80% before i would feel comfortable doing more than dipping toes in the water....
One very simple strategy for options if you don't know all the greeks and just want simple but effective. 1. Find a stock that tends to make big moves. Like 4-5 dollar moves at a time. 2. Wait for the bollinger bands to get real tight 3. Do a straddle or strangle on it. Where you buy the puts and calls 4. You are going to need to let it make it move to either side. Usually about 3 - 4 dollar move will just about double your money.