Daytrading US Stocks/ETF's - Shares & Options

[Poxman]

I am going to post to this thread with a few ideas. i have traded for 20 years although i do agree with most of your views on vendors, which i was for US equity trading software but only worked on profit share, i think trading software should be used with a macro overlay meaning that traders need to have some sort of filter on models if the trading system has a trend bias.
my thread will be http://www.trade2win.com/boards/tra...emini-trading-system-journal.html#post2677400

 

[Lúidín]

I am going to post to this thread with a few ideas. i have traded for 20 years although i do agree with most of your views on vendors, which i was for US equity trading software but only worked on profit share, i think trading software should be used with a macro overlay meaning that traders need to have some sort of filter on models if the trading system has a trend bias.
my thread will be http://www.trade2win.com/boards/tra...emini-trading-system-journal.html#post2677400

You are welcome to post daytrades here as per thread name, but any hint of someone trying to post links to other site/s that looks, or will look for, money from others, will not be tolerated, and the mods will be asked to block access to this thread for such posters.

 

[Timity]

just noticed FXCM has a huge void if you look back on the daily

 

[Lúidín]

just noticed FXCM has a huge void if you look back on the daily

too risky..don't see any option chain here so would not even consider trading it

 

[Lúidín]

order in...

 

[hhiusa]

order in...

Would you mind explaining that order to me?

 

[Lúidín]

Would you mind explaining that order to me?

When I am not at my laptop, I use my mobile phone to look at some basic charts and then I use options to limit my risk, as I can only lose the premium paid, in this case $200 plus commissions.

I put in the order above, in case the SPX pulled back a bit more, which would result in the VXX rising, thus lowering the price of the put - in this instance it was not filled, but that is fine.

I was anticipating a rise in the SPX after a drop, which would result in the VXX falling, thus increasing the vale of the long puts.

Target would have been looked for if the trade was filled, which it was not.

I might have also used a stop, it all depends on what charts look like after trade filled.

Whatever happens, my max risk is capped at $200 plus commissions.

Clear?

 

[hhiusa]

When I am not at my laptop, I use my mobile phone to look at some basic charts and then I use options to limit my risk, as I can only lose the premium paid, in this case $200 plus commissions.

I put in the order above, in case the SPX pulled back a bit more, which would result in the VXX rising, thus lowering the price of the put - in this instance it was not filled, but that is fine.

I was anticipating a rise in the SPX after a drop, which would result in the VXX falling, thus increasing the vale of the long puts.

Target would have been looked for if the trade was filled, which it was not.

I might have also used a stop, it all depends on what charts look like after trade filled.

Whatever happens, my max risk is capped at $200 plus commissions.

Clear?

Yes! What was the trade value?

 

[Lúidín]

Yes! What was the trade value?

Control 500 shares of VXX on short side...500 x approx $20...$10K value

Margin = $200..being amount of premium paid as buying puts

As you can see from pic..my anticipation was correct this time, but my entry level was a little too low, hence I missed the trade as I was not monitoring, which is fine and does not bother me.

 

[hhiusa]

Control 500 shares of VXX on short side...500 x approx $20...$10K value

Margin = $200..being amount of premium paid as buying puts

As you can see from pic..my anticipation was correct this time, but my entry level was a little too low, hence I missed the trade as I was not monitoring, which is fine and does not bother me.

What was your net profit on the trade?

 

[Lúidín]

What was your net profit on the trade?

The trade was not executed as my limit level was not hit.

If it had dropped back a few cents I would have been filled at 0.40, now at 0.68, so profit if closed now would have been

500 x (0.68 - 0.40) 0.28 = $140 less commissions of approx $6 to $10

The main reason I use options is when I am away from laptop, so I know my max risk at all times. These are daytrades, very rarely hold overnight, but again, depends on what charts look like..might hold if I think more profit might be had the following day..but I then run the risk of gaps, as options cease trading at 16:15 EST and reopen at 09:30 following day

 

[hhiusa]

The trade was not executed as my limit level was not hit.

If it had dropped back a few cents I would have been filled at 0.40, now at 0.68, so profit if closed now would have been

500 x (0.68 - 0.40) 0.28 = $140 less commissions of approx $6 to $10

The main reason I use options is when I am away from laptop, so I know my max risk at all times. These are daytrades, very rarely hold overnight, but again, depends on what charts look like..might hold if I think more profit might be had the following day..but I then run the risk of gaps, as options cease trading at 16:15 EST and reopen at 09:30 following day

So you didn't make any money? What was your total risk of loss?

 

[Lúidín]

So you didn't make any money? What was your total risk of loss?

Correct..no money made or lost as my order was not filled.

Total risk was $200, but that is only if long put held until expiration on Jan 08 and it expired worthless..I could have easily put in a stop order at 0.30 to limit the potential loss to $50 plus commission.

I find options very handy when on mobile phone, as I can still make some money while keeping my risk level small. The big risk is the charts are very limited, so my analysis is not as good as it would be when at laptop, but that is fine once i dont trade too big and take on too much risk.