# Happytrader's Method - Trade only one stock via options



## happytrader (20 September 2005)

The views expressed are gleaned from my own experience and are not to be viewed as recommendations.

I trade only one australian stock via options.

I selected this stock because I have found it to be 'honest and trustworthy' 90% of the time.  When it does not perform as expected the downside is usually a donation of 2.5 to 10%. I typically enter late in the afternoon and sell in the morning.  This stock returns 40 to 100+ per month one way whatever the trend.

The downside of trading one stock is that sometimes I might have to wait up to 8 days in between trades.  Another factor is watching other stocks go to the moon. Not much of a downside really is it.


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## tech/a (20 September 2005)

*Re: I hope this helps*

A very valid trading method.

There is a lot to be said for being "in tune" with a stock.

Well done nice niche.


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## happytrader (30 September 2005)

*Re: Happytrader's Method- Trade only one stock via options*



			
				happytrader said:
			
		

> The views expressed are gleaned from my own experience and are not to be viewed as recommendations.
> 
> I trade only one australian stock via options.
> 
> ...




Results so far  Calls Only                                 Errors + Comments


17.5.05  Buy at .04       05.6.05  Sell at.07   Win  bought too far OTM
01.7.05  Buy at 25.5     06.7.05  Sell at 24    Loss  got greedy
11.7.05  Buy at 11        21.7.05  Sell at 20    Win   got lucky
26.7.05  Buy at 31        29.7.05  Sell at 39    Win   traded to plan exactly
02.8.05  Buy at 36        03.8.05  Sell at 43    Win   traded to plan exactly     
18.8.05  Buy at 38        23.8.05  Sell at 38.5  Win   got greedy
30.8.05  Buy at 31        02.9.05  Sell at 37    Win 
06.9.05  Buy at 57.5      09.9.05  Sell at 56    Loss weak signal, preempted 
13.9.05  Buy at 37        26.9.05  Sell at 41    Win  got greedy and cocky
29.9.05  Buy at 55.5      30.9.05  Sell at 62    Win  low open interest

Other errors included ignoring 3 trades, ignoring plan by not sticking to timeframe.

Looked really good until I checked all the dates and realised I was fooling myself. Its pretty obvious I need to improve my game.  Just as well this is a very forgiving stock. The only really excellent thing it looks like I did was cut my losses short.  


Happytrader


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## pete152 (1 October 2005)

*Re: Happytrader's Method- Trade only one stock via options*

Hello,
How much do you spend on each buy? $5000,$10,000? It sounds like a good share.
Cheers,
Peter


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## happytrader (1 October 2005)

*Re: Happytrader's Method- Trade only one stock via options*

Hi there

This is a bluechip in the materials sector and has its equivalent on the US market I only discovered the other day, not that it makes much difference. $2000 will show it works and keep the stress level way down while you build faith and trust. $5000 to $10,000 per trade will make you a living. I had stock report on the phone yesterday asking if I would like to renew my subscription and I had to kindly refuse.  The reason being that I did not want to look to the 'left or the right' so to speak as I continue to perfect my behaviour trading with this stock alone. Those 3 ignored trades were perfectly viable except I got 'bored and strayed' while I was waiting for the setup. Im sure some people would think that sounds a bit ridiculous but humans like to be in the game. I say this because that is the system, when you see the setup regardless of how you feel or think, you trade it. To combat straying I will be trading this one stop both ways from next week when the setup presents. I can accurately say buying at the money options with 3 - 6 weeks time value and heaps of open interest will give you the best return and ensure liquidity on this one.  Of course all this not a recommendation I am merely sharing my personal experience with my fellow trader.

Cheers
Happytrader


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## Mofra (1 October 2005)

*Re: Happytrader's Method- Trade only one stock via options*

Well done HT, from memory Gann once said something like Know your stock like you would know your child


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## pete152 (1 October 2005)

*Re: Happytrader's Method- Trade only one stock via options*

Good work,HT. Sounds like a good plan.
Cheers,
Peter


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## tech/a (1 October 2005)

*Re: Happytrader's Method- Trade only one stock via options*



			
				Mofra said:
			
		

> Well done HT, from memory Gann once said something like Know your stock like you would know your child




Gann obviously didnt have Teenagers!


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## Bronte (7 November 2005)

*Re: Happytrader's Method- Trade only one stock via options*



			
				Mofra said:
			
		

> Well done HT, from memory Gann once said something like Know your stock like you would know your child



Or "You must get to know your stock or contract like a cow knows its calf."
Thanks Mofra


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## Milk Man (8 November 2005)

*Re: Happytrader's Method- Trade only one stock via options*



> Or "You must get to know your stock or contract like a cow knows its calf."
> Thanks Mofra




Well I take the calf away at a few days old so......


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