Trading as an art form

Discussion in 'Journals' started by Dustin, Jul 16, 2021.

  1. 777

    777

    Dustin,

    Do you trade equities at all and if you do, do you have a current style?

    Why have you shifted away from equities to options?

    Thank you.
     
    #21     Jul 19, 2021
  2. Dustin

    Dustin

    I'll generally only trade equities if the options aren't a possibility. The leverage that options provide suit my trading style much better. I'm able to win big win I'm right, and risk is 100% defined so I know exactly how hard I can press.
     
    #22     Jul 20, 2021
    Rams Fan and 777 like this.
  3. 777

    777

    Thank you.

    I was always told the bid/ask spread in options was a problem as well as liquidity and that commissions were worse.

    I was told incorrectly?
     
    #23     Jul 20, 2021
  4. mab81

    mab81

    Very interesting point of view to trading. I must say I never considered it as an art form, but considering that you are basically trying out new things from time to time and being creative through your intuition I guess that yes it can be viewed as such.
     
    #24     Jul 20, 2021
  5. Dustin

    Dustin

    Depends what kind of stocks you trade. Some of my best trades over the past year were contracts that barely traded day-to-day, and I was 80%+ of the volume. Didn't matter though because when you are right and the stock moves, there will always be hft ready to fill you if you are just slightly mispriced. In thick stocks like AAPL you can pretty much trade any volume within 2c.

    The standard commission/rebate setup at most brokers is not good. You need to negotiate rates (if you have any volume pricing power), and also make sure your broker passes on rebates.
     
    #25     Jul 20, 2021
    Rams Fan, 777 and qlai like this.
  6. 777

    777

    Thank you.
     
    #26     Jul 20, 2021
  7. Craig66

    Craig66

    What would you estimate your monthly volume is?
     
    #27     Jul 20, 2021
  8. Dustin

    Dustin

    20-50k contracts, depends a lot on market volatility
     
    #28     Jul 20, 2021
  9. Dustin

    Dustin

    Tuesday update. Today was another slow-ish day, but there was a nice setup in MRNA. I'm sure a lot of guys got paid today in this one. I'm holding the USO overnight, hoping for a gap to sell into tomorrow morning. That's just a simple reversion bounce play.

    FWIW I'm hoping for another leg lower in the market starting tomorrow or Thurs. Another Friday drop would be ideal. Tried a few small shorts today and nothing seems ready yet.

    tue.PNG
     
    #29     Jul 20, 2021
    NoahA likes this.
  10. Craig66

    Craig66

    You negotiated on that? That's interesting.
     
    #30     Jul 20, 2021