Another brother of the I Promise I Will Never Average Down Again Anonymous chapter! (and lead us not into temptation) Hail Brother!
Nq just hit 1139, i'm out all NQ's + 14 on some, and + 29 on the others. I'm also out QQQ calls I bought this am. Still holding calls from yesterday.
I remain bullish today and I hope to sell my calls from yesterday if we reach yesterdays lows. If not, i'll hold them since the cost is only pennies compared to todays profits. Because I'm still bullish, I'll probably scalp NQ long intraday. I think that we could get a higher high on Monday.
sold my yesterdays QQQ calls when NQ hit 1150 for a very minimal loss, overall the whole gap play was a huge success... now to look for the next play.
This has been my experience with the gap play... If i'm not right in guessing the direction, it always comes back to breakeven level. And since I know this, I can double dip and make a killing like I did today.
Always relates to the past my friend... You havent properly taken into account for the time she just keeps going! PEACE and good trading, Commisso
everything that I or anyone else comes up with will be based on the past. Whether it's stochastics, elliot wave, gap patterns, level 2 - it's all based on what you have seen it do before, or how far back you've tested it. thats why it's all about statistics and luck. the difference between stochs and my Sleepless Nights Play (SNP)is that stochs probably only works 50% of the time and my SNP works 95% of the time. that considered, I still use alot of things to save me from a huge loss. I only use 1/8 of my daytrading account on this play. Considering that I can make around 5 to 50% on that capital every gap play... i can afford to lose all of that 1/8 capital every 5 out of 95 plays.
I will be putting on a QQQ option Spread at the close, with a 2/1 ratio in favor of calls. I think we gap up on Monday. Cya'll monday!!!!
the problem with playing the gap with options is that the gap is sometimes too small for them to move... add premium decay and today's open sucked. next time, I will hold a combo of nq's and qqq options. i basically sold fridays spread @ a marginal loss. no gap on tomorrows horizon that I can forsee.
I think you are taking more risk than you think you are when you double down. What is your maximum position size relative to your trading capital ?