You've got 3 variables to get right... not only are odds against you, somebody who is STATISTICALLY RIGHT WAY MORE THAN YOU... has bet against your play. Short-odds generally do not prevail, you know.
No, i dont know. Please answer my questions. Thank you. So, if price of the basis product is going up, then options as well are going up, or not ? Or depends it on the kind of options? What means tha alpa, beta, gamma stuff ? Can i trade them on a demo to test it out ?
I will figure it out. Can not be so difficult. As long the basis prediction is correct, the options play will work out. I like that, ALL IN on my setups. are 1000% gain VS 100% risk, common practice ????
Sorry, I can't answer... I don't know the detailed mechanics of options. I see them as a "speculation worth the capital risk" only at certain times. That is, market has to be waaay oversold for me to buy or waaayy oversold and technically-supported for me to sell. I try to risk the same amount of my portfolio as I might risk on another trade.... knowing the payoff is significantly greater than other trades if successful... talking a form of "leverage" here. Overall, "playing on leverage" is hazardous to your wealth, so caution is advised.
i smell some smoke here...oh...it's from the HATEtheRisk's head.. http://www.amazon.com/McMillan-Opti...8759/ref=sr_1_1?ie=UTF8&qid=1327688535&sr=8-1
Hell yeah. Now i have something do now. Boredom is over. The quest now is, figure out if option trading on my setups makes me more money, then the normal way. And if yes, how to do it the smartes way. I am off. Have to learn. See you in 3 monhts. Bye There is nothing i cant do. FUCKERS
So let me get this straight, if it the pattern works then it is valid, but if it doesn't work then it doesn't count towards to the success rate? It must be tough for him at cocktail parties telling people about how he is a trader with a 100% win rate, but yet somehow still loses money. The options theory sounds a lot like betting the ponies or black jack. Anyone with $10 in their pocket can become a millionaire really quickly by doubling down on their winners, but the only problem is that you can't have one loser in the streak.
So, last night, i have read through my options book. And i must say, it seems pretty boring to me. I also absolutely dont like the fact, that when they expire they are worthless. (While this only counts for the american style, not with the european style). I know now what Delta is, yeah. And premium, yeah And Strike, yeah But i dont see any advantage VS my normal high leverage FX and Futures trading. I dont need options to speculat short on Stocks, for that i trade CFDs as an European or Futures of the EuroStoxx on the EUREX. But it was interesting. Now i finally know how they work. But i dont need them. Becoming millionair with 2 trades, with starting with 1k$, might only work in our dreams, but doing it with 100 trades could work, as long you always bet all you have on high leverage, right so much to avoid a margin call. But you dont have to be wrong, otherwhise the margin call, would cut your account down a big size again. Bahamas is too hot for me anyways. I prefer Canada. Thanx for the funny thread. P.S. Never give up on your 2 options trade billionaire dream. You can do it Boby111!!!