Happytrader's Method - Trade only one stock via options

[happytrader]

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.

 

[tech/a]

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.

 

[happytrader]

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

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.

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

 

[pete152]

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

 

[happytrader]

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

 

[Mofra]

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

 

[pete152]

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

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

 

[tech/a]

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

Gann obviously didnt have Teenagers!

 

[Bronte]

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

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

 

[Milk Man]

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......