Topics you'd like discussed or explained/Whats your area of expertise?

[money tree]

Think both of us have been justly rewarded.

agree. I have a passive business with purely positive cashflow selling my knowledge & experience. You have made zip. As Han Solo said to Chewbacca: "laugh it up, furball!!!".

Some of us DONT NEED the money.

I have some relatives down your way would like some free retaining walls done. What? You are the only one allowed to have a business that makes a profit? I thought you didnt need the money? "the more you give the more you get" right?

You really underestimate the intelligence of people here.

We are all here to make money. Well maybe some are here for ego.....

 

[tech/a]

TREE
I find you and those like you truely fascinating.

All thats been offered here is the opportunity for others to learn from the experience of others-------thats what public forums are about.
Your interpretation is that if you offer free information particularly if you spend the amount of time I do in its presentation and the volume I present,then the only possible explaination is that I or anyone like me has an ego to massage.

You never get involved all you wish to do is discredit.
When that doesnt discourage you then get personal.

Do you honestly think your whinging and professional posturing has the 1000+ members rushing to you to part with their $$$s to see what secrets you(And seemingly no onelse) can give them?

Maybe some examples---realtime showing (some) of the methods you offer at a fee may whet the appitite of some potential clients.
Personally I feel your biggest fear is showing examples that fail!
In your mind there would go professional credibility.

In my mind and those who understand business that would be just a cost of doing business---how YOU handled it on presentation would be what Im interested in.

I dont deny anyone making a profit from their chosen business----but I certaintly dont feel that professionals have a mortgage on practical knowledge.

Ive recieved no profit you say------

Well I have many friends all over the world many whom I have met in my travels,wonderful diverse people who Ive shared many laughs discussions and time with.
Countless amounts of software much from developers of cutting edge stuff well before it goes public.My time and comments have been well rewarded.

Finally the many emails from those who have found something that has helped them in their quest to do what we all like to do in the market ---make a $$$.
When Darrel who approached me 3 yrs ago to help him develope a longterm method sends me his portfolio results from each month and I see $90k start and now $250K --------- That is worth more than ANY fee.

If thats EGO then so be it---guilty!!

You MAY have a knowledge in options but when it comes to life an people from what Ive seen your not even in Kindi.

 

[RichKid]

Tech/MoneyTree,
I know you two are great mates so could we just keep all this love off the forum please? Just on topic please gents.

I get the impression Tech is trying to be helpful here MT so it would be good if you could be supportive. Whether it be through ego as you suggest or through his desire to help fellow traders the fact is it's beneficial to all. Not every contribution should be valued through the dollar figure you pay for it. There is nothing wrong with altruism.

 

[money tree]

Richkid

Ive got no problem with tech/a offering help, whatever the motive. This thread is a good idea.

What I do have a problem with, is his thinly vailed insults such as "Some of us DONT NEED the money." Implying that I am poor or something.

I thought Joe said no more of that kind of thing?

Im quite happy to help others with certain topics and have done so thus far.

 

[tech/a]

Pay peanuts, get monkeys.

TREE.

Ill bite what DID you mean by the comment above---wher'd I get it wrong?

Simply this comment says to me that your view is that free information(peanuts) has no value.Those that offer it are delivering little of value(monkeys imply un qualified).

Im simply implying (Its not about you!)that I dont need to or want to charge for this information.
Those that recieve the information can judge its value.

You have made it quite clear that trading information along with other financial info is your living and your going to charge for it.

Fine.
Why make a non constructive comment like the above in the first place?

Tree why dont we sort this out private messaging.
Im sure its simpler than it seems.

 

[geroanyday]

Buy geraldton real estate ......... :goodnight

 

[Joe Blow]

Buy geraldton real estate ......... :goodnight

Are you telling us you're an expert in Geraldton Real Estate?

Or just that we should buy it?

 

[DTM]

Ahh nice to hear from the rest of the Monkeys in the jungle!

Think its great that there is a diversity in the way people trade and what works for them.
Examples are always great for those of us who want to see working examples.
Win,Lose or Draw there is something to be learnt in every example (Well I think there is).

Smurf.
So you specialise in trading only energy stocks?? How do you apply your specialty to your trading?
Some examples?

Wayne
Im interested in seeing a spread trade taken in a live trade to get an Idea what you look for and your application of the trade.
How you quantify it and the trade itself.

DTM
Im also interested in you Straight option trading method --what you look for and how you trade it---from selection to position sizing through to application and resultant action wether it goes for or against you.

Thanks.

With straight options trading, I am only aiming to try and understand the dynamics of the underlying share ie the price movement of the share. I am basically using the same principals as any other share trader. I evaluate the share like any other trader and am looking for only two things, 1) it has the potential to go up or 2) or it will go down.

1) Selection criteria

i) Look for trending stocks that are strong/weak and are above their 70 dma or below their 70 dma (but not a prerequisite).
ii) work out support and resistance for entry and exit points
iii)Look for divergence on indicators. Mainly OBV, MACD, Volume, (haven't used stochastics yet but will look at incorporating it) and moving averages.
iv)I the check the index it is included in eg XXJ for banks to make sure that it looks like it will go up/down, and conversely look at the XJO for overall market guidance.

Once I've found options that I want to trade then I see how expensive they are eg If NAB $32 May call options were .50 (cents) and the NAB share price was $32.50, it shows me that I'm paying only for its intrinsic value ie I'm not paying for time or volatility value. ie The more time you have before expiry, the more expensive it gets. Same goes for volatility. The more volatile the share, the more expensive it will be.

In the first two weeks of the month, I will stay away from the volatile blue chip stocks because they command the most in prices. Something like RIO can be ridiculous because it can charge you up to 200 or 300% plus of the intrinsic value in the first couple of weeks. In the last two weeks, I will start looking at volatile stocks. In the last week before expiry, I will look at the most volatile stocks because it gets a lot cheaper making your returns greater (it you pick it right).

On entry and exit, I use a short term oscillator to time my day of entry. My main trading is based on recognizing intra-day patterns which gives me my signals for entry and exit. I use my support and resistance lines as an indicator of where to be wary, but again, it will depend on the intraday pattern.

I normally buy options in lots of 10 contracts, so either 10, 20 or 30. Once I've entered my trade and it starts moving my way, I can either average in by buying cheaper options (with lower or higher strike prices) or I leave it and wait it out. Sometimes I have to wait two weeks because shares may take that long to bottom out whilst other times it may happen in one day. Sometimes I will take my riskier options out ie sell the cheaper options (less profitable) before selling the deep in the money options (most profitable). Other times I will sell all at once, and again, it depends on the intra-day patterns.

I don't have a set amount of profit or loss before I sell. It comes down to intraday movements. This month I was trying a new risk approach but was too trigger happy causing me to lose money from selling too early, although am still happy with my new approach. This month has been very trying because some of the shares have been very choppy. In saying that, I still did make a profit. This month I only used 10k as my base capital and returned 180% profit so am happy with the results. I still have more things to add in my trading so will use next few months to add more refinement.

Buying straight out options is very risky becuse you are basicall buying and selling promises. If you get it wrong, your whole outlay could disappear. I use position sizes of up to 10k per trade unless I can really see a bargain, I will use more. My biggest loss has been about 15k on one trade in my early day. This month with my new system, its only been in the hundreds. My biggest (happiest) profit has been 22k from a 4k investment.

Hope this helps.

 

[excalibur]

Hi Tech,

I would like to discuss branch investment.
That means were to invest money.
I`ve been doing a bit of research lately on a few mistakes I made in the past and something startled me that sent a vibration up my spine.
For example:
In 1998 I bought Technology-Funds that have shares in computer companies like IBM, Microsoft, Intel and so on and invested my money monthly automaticaly from my bank.
Well it was kind of a boom then and reached its peak in 2000.
After that, it was only downhill and the 911 gave it its blessing...you know what I mean:
The funds lost 80% of its worth.
I still have them. I stopped paying in a few months ago.
Observing its 10 year chart, I compared it with the ten year chart of the USD.
They were identical!
:

Happy trading
EX

 

[tech/a]

DTM

Thanks for the run down.
Question.
How do you handle Market Makers spreads?
Im interested in your stop methodology as even a few cents move away from entry particularly with the spread on 20 contracts can be very expensive.
Any idea of average win average loss and your win rate?
Ive traded options and felt the high of huge gains and the lows of valueless expiry!Mind you that was many years ago when I was trying to turn $10K into a million hahaha----I lost.

EX.
Great topic.
Why not start a thread I'll pitch in---got some ideas,other than the obvious.

 

[DTM]

DTM

Thanks for the run down.
Question.
How do you handle Market Makers spreads?

With the market makers spreads, there's nothing much I can do. Sometimes its frustrating because I think that the options should have more value, other times it has too much value . I look to buy the options that are undervalued and are about to make a move, so I guess I'm always trying to pick the bottom or the top.

If I need to get the trade straight away, I buy/sell at market value. This puts me in front of the que with the market makers. If I have bought options and the share price is approaching the limit of where I expect the price to move to, I will sell the option before it hits it. So basically I look to sell when it is at least 5 to 10 cents out from where I have drawn my support/resistance. I do this by putting in my sell order at what ever the asking price is and not move it. When the price keeps moving in my direction, I get taken out as the bid/ask price moves in my favour. Sometimes this may arouse suspicion with buyers/sellers but when price is still moving in my favour, it doesn't take long for someone to take it out. If there aren't many buyers/sellers, I ring in the order and the market makers will always find me a buyer/seller.

DTM

Im interested in your stop methodology as even a few cents move away from entry particularly with the spread on 20 contracts can be very expensive.

Basically once I've entered my trade, I have my support and resistance lines drawn where I expect the price to be the bottom or the top. I will allow some leeway if the trade is moving against me but if it looks like that my resistance and support are clearly broken, then I will try and get out. The intraday movements are my biggest indicator about whether it has moved against me. Its hard to describe intraday movements because its pattern recognition and its something I've learnt by being in front of the screen all day long.

This month I've tried being more pro-active in getting out of risky situations and yes, a few cents move against you can bleed you to death. This month I've kept my losses down to a bare minimum and my worst loss was $650 so I am happy with that aspect (used to be a few thousand). This month has been very choppy so I have kept my trades very short term, from a few hours to a few days. I don't have a set expectancy outcome but from experience, 7 out of 10 positive results.

DTM

Ive traded options and felt the high of huge gains and the lows of valueless expiry!Mind you that was many years ago when I was trying to turn $10K into a million hahaha----I lost.

I'm trying to do the same and if I fail, then I will go join the dole que, or become a house husband and send my wife to work.

 

[excalibur]

DTM

Thanks for the run down.
Question.
How do you handle Market Makers spreads?
Im interested in your stop methodology as even a few cents move away from entry particularly with the spread on 20 contracts can be very expensive.
Any idea of average win average loss and your win rate?
Ive traded options and felt the high of huge gains and the lows of valueless expiry!Mind you that was many years ago when I was trying to turn $10K into a million hahaha----I lost.

EX.
Great topic.
Why not start a thread I'll pitch in---got some ideas,other than the obvious.

There is a very old proverb:

Wise is he who learns from his mistakes.
Wiser is he who learns from the mistakes of others.

I thought about starting a thread with short trading tips based on personal experiences. Kind of an investors bible.
I won't tell you much more otherwise someone could steal my idea.
I need a few days to let it stand
Cheers