Home-Based Trading Career Pathway & Journey...

[WklyOptions]

Hi, T2W,

WklyOptions here on my 1st post on this Home Trader thread. I just wanted to introduce and share with you my trading background and biases.

1. Home-Based trading career: 10+ yrs full-time solo trading career.

2. Trading products: (a) US-listed Weekly Options on ETFs, Equities; (b) FX options using the NADEX products & platforms.

3. Trading platforms:
a. Weekly Options - primarily use ThinkOrSwim (TOS) with TradeStation backup.
b. FX Options & Binaries - use the NADEX platform with FXCM TWS as backup.

4. Weekly Options strategies:
a. Use multiple time-frame analysis (MACD, EMA(20)). M/W/D/H/M30/M15/M5.
b. Trade duration usually < 8 trading days.
c. Trade strategies: trend reversal & trend continuation setups.
d. Trading Edge: income-strategies w/ selling At-The-Money fattest premiums.

5. FX Options & Binaries strategies:
a. FX asset correlation & comparative relative strength analytics.
b. Multiple time-frame analysis (MACD, EMA(20)). M/W/D/H4/H1/M30/M15/M5.
c. Trading Edge: trend & momentum directional setups on pull-backs.

6. Bet Size: 1st "bet" at 0.5% of acct balance. May attack 2nd time w 1% bet.

7. Max # of open positions at any one time: up to 20 open campaigns maximum. Maximum acct capital "at risk" at any point is (25%).

Well, I hope the above very brief "summary" is clear enough to give you a basic background/organization of my trading procedures.

I look forward to sharing and exchanging of trading & technical analysis topics, ideas, results! I will also post my trades at times to give T2W a real-time "flavor" of how the above approach is applied.

Thank you for your time and attention - please feel free to post here on this thread or PM me (if T2W allows PM?) with your constructive input & questions!

Best regards,

WklyOptions

 

[WklyOptions]

A professional trader's career path requires a broad-based study and application of disciplines related to (a) controlled risk-taking, (b) working with constant uncertainty and random distribution of outcomes (wins vs losses), (c) pressures to perform and profit on a regular basis, (d) procedures to systematize the processes to allow for accurate consistent debriefings and Lessons Learned along the trader's journey!

This does not even take into account the stress(es) for having the proper starting bankrolls, technological platforms, dealing with isolated daily/weekly career paths, etc.

For this post, I thought I'd share with T2W some of the best educational references and resources that I have studied and applied (again, primarily as an options trader). I've tried to include as broad-based as possible some of the disciplines required for success-based trading:

1. Technical Analysis
a. All of the books ($75 orig?) from Tom DeMark were very good - providing a more objective methodology to common technical analysis indicators and tools like trend-lines, cycles, Retracements & Projections, Pivots, Key Support/Resistance levels, etc.
b. Robert Miner's "Dynamic Trader" manual ($150 orig/) and Joe DiNapoli's Fibonacci book ($95 orig?) - both excellent to get well-grounded on the applications of Fibonacci Retracements & Projections, cycles analyses, setting proper Reward-vs-Risk Entry/Exit levels. Both these books were especially helpful early in my career as both authors were/are(?) active traders themselves.
c. DVDs by Dale Wheatley (Option Hunter) - focused heavily on the use of MACD across multiple time-frames for options trading. There are 2 series (each $495 orig?). Although heavy-handed at times, Dale does a very good job of explaining how to attack very specific MACD-based divergences and trend-continuation setups. I think it is a must to help traders lern to apply multiple time-frame analysis.
d. Lesser expensive books/manuals on multiple time frame analysis: (1) "Market Maker's Edge" ($ orig?); (2) "Multiple Time-Frame Analysis & Trading" series of two manuals ($35 orig?) using MACD and EMA(20). These manuals are short and not fluffy - very direct and to the point, designed for traders. They were privately sold/released from the Technical Analysis Study Group back in the late (1980s).

The 2-volumes of (d)(2) above are also the only books I have read/studied that actually provides a template/procedures to go thru step by step the Multiple Time-Frame Analyses. Often books will describe and gloss over the applications of this discipline. However, traders may find (2) above useful b/c they will be repeating a procedure for Multiple Time-Frame Analysis - plus then applying it for trading purposes (Reward vs Risk, Entry, etc). It may be difficult to find (d)(2) -but well worth your time/efforts if at all possible - automates multiple time-frame thinking and trading applications.

2. Trading Psychology
a. Mark Douglas has a book called "Trading in the Zone". A MUST read - to help deal with the challenges and internal stressors of having to deal with uncertainty and random distribution of outcomes.
b. Ari Kiev - "Trading to Win" - a detailed look at the mental challenges and decision-making biases of professional traders dealing with large trade $$$ size.
c. Van K Tharp - "Trade Your Way to Financial Freedom" - important book dealing with critical concepts of bet-sizing, the R concept, designing your own systems, and often-unseen personal biases that can sabotage trading efforts.
d. Jack Schwaeger (spelling?) - all his Market Wizards books and sequels. Good historical reading on personal challenges and insights of the best traders.

Well - that's enough for now - at least some critical starting points for new T2W newbie traders to get going. More critical concepts will be shared soon.

Regards,

WklyOptions

 

[WklyOptions]

Hi, T2W members,

Well, back from a great vacation in the Bahamas! Just love all that blue ocean water and white sand beaches!

Back to trading focus now...

Since reading thru the many "New Posts" threads, there are many new members that seem to have minimal trading experience (and chart analysis). This post is to give newbies some ideas to explore and spend time/effort towards mastery:

1. First - you must FOCUS on your objective(s). Why do you want to go into trading now? Posts are littered with opinions, fantasy expectations, etc. There should be only 1 reason to trade = to make a profit on EVERY trade! Of course I understand we can't win 100% - but the focus is to profit EVERY trade. And manage the losing trades to break-even (or exit at a small loss to the bankroll).

What I've found most interesting - most forum visitors just enjoy posting, asking questions, debates, pros/cons, provide news/economic reasons, etc. But - not really involved in generating PROFIT via trading.

How many T2W shoot for a minimum $1k (USD) per profitable trade? How often?

2. Part of the FOCUS is to follow T2W traders that actually trade - and post their trades to be critiqued and reviewed by the T2W community.

3. Do newbies have a trading blueprint or plan? Has this been thoroughly back-tested on a systematic basis? Can it be executed systematically by someone other than the trade develop him/herself? Has it a positive profitable EDGE?

Personally - I don't really care what indicators, logic, markets, instruments traded, etc. - I only really focus on following traders/T2W members that show consistent profitability. And- is the methodology repeatable, transferable to other markets, transferable to other traders?

Over the last couple of weeks, the US markets have been digesting back and forth and there have not been any strong weekly options setups. Hence my vacation to the Bahamas (esp w Memorial Day long wknd).

However, as a professional trader, I also do maintain swing trades usually with durations of between 2-12 weeks. These trades have profit targets of at least 2% per week x duration. So a 12 week trade must close out at least at (+25%) or better.

I choose the swing trades very selectively - to make sure it does not get exposed thru earnings report release dates, etc.

Later today - I will post two new swing trades with new entries. I will outline the technical reasons, plus the target objectives. I will post it under a separate thread under the Home Trader thread as "Options Swing Trading".

I can even discuss details of its technical analysis and/or options mathematics to any interested T2W members.

We are here to share and learn and discuss/debrief. But my perspectives will always be from the stand point of how best to (1) lock up profits, and/or (2) absolutely minimize losses.

In my opinion, it is not at all difficult to earn $2k or more per month - there are many ways shown here in T2W to achieve this profit target.

Many traders/newbies if given an additional $2k per month can almost be "financially free" above and beyond their monthly expenses.

This is what active trading is all about - to focus - to force the learning process and stay on track to achieve monthly profits - ultimately to gain freedom.

Beyond active trading - of course there needs to be passive trading and investing methods as well. But these passive sources of income are entirely off topic in this thread.

I only urge strongly for newbies and members - don't spend too much time debating news, theories, indicators, etc. Focus instead on systems backtesting methods and systems results. Then focus on modeling and following traders that can openly post and achieve break-even or winning trades (with minimal losses).

This is after all T2W - a trading forum for trading members. So - let's all learn to trade with much higher standards and focus!

Look for the two swing trades soon...

Thanks!

WklyOptions

 

[NVP]

Hey there W............

excellent posts............looking forward to any further input/comments you make ...........a few profitable calls usually raises the interest on threads

N

 

[WklyOptions]

Hey there W............

excellent posts............looking forward to any further input/comments you make ...........a few profitable calls usually raises the interest on threads

N

Gd mng, N,

Thx! Also enjoy reading thru your posts - esp enjoy the direct, no-nonsense commentary on your part! Keep it up!

Btw - I do trade FX thru FXCM initially - but now enjoy also trading on NADEX.

Thx,

WklyOptions

 

[WklyOptions]

Hi, T2W members,

As more relatively new traders (or pending traders) are joining the T2W community, I'd like to offer new traders a free ePDF short manual called:

"The Fastest Way to Track Big Money Order Flow Blueprint"

This ePDF was written for trading interns/clerks at the Family Office that I was at previously. It was a PowerPoint presentation that was then printed out as an ePDF training manual and study guide for group discussions. It has the following contents and focus:

1. The time frame(s) that best track the "Big Money" order flow.
2. The priority and implementation of defining the "trend".
3. The use of multiple time frame analysis & the MACD to exploit low-risk setups.
4. The critical role of calculating the "R" (Reward vs Risk ratio).
5. The management of winning and losing open positions.

The methods described in this ePDF included examples using stock & forex case studies. However it is just as effective (perhaps even more so) for using options-based strategies.

Note: the examples provided include both Long & Short trades.

2nd Note: this ePDF has basic contents using standard price charts and the MACD indicator as its primary tool (plus multiple time frames analysis). It is a brief "Cliffs Notes" guidelines for the trading clerks/interns - but I believe it still contains excellent technical analysis "value" for T2W newbies/traders.

In closing - no matter HOW a chart is analyzed - the newbie trader MUST find a consistent, coherent, and high-confidence methodology to identify the dominant trend(s). He/she MUST also be able to reliably identify a good pullback point of attack - versus a reversal of the main trend. Achieving BOTH skills here allows the trader to then move to the next level - money management, bet-sizing.

If the T2W Staff gives its blessing and approval, I will send out the ePDF study guide to newbies/traders requesting one. Just PM me directly with your active (and accurate email please). I will batch-send the ePDFs this coming weekend.

Thank you.

WklyOptions

 

[redtag12]

Hi, T2W members,

As more relatively new traders (or pending traders) are joining the T2W community, I'd like to offer new traders a free ePDF short manual called:

"The Fastest Way to Track Big Money Order Flow Blueprint"

This ePDF was written for trading interns/clerks at the Family Office that I was at previously. It was a PowerPoint presentation that was then printed out as an ePDF training manual and study guide for group discussions. It has the following contents and focus:

1. The time frame(s) that best track the "Big Money" order flow.
2. The priority and implementation of defining the "trend".
3. The use of multiple time frame analysis & the MACD to exploit low-risk setups.
4. The critical role of calculating the "R" (Reward vs Risk ratio).
5. The management of winning and losing open positions.

The methods described in this ePDF included examples using stock & forex case studies. However it is just as effective (perhaps even more so) for using options-based strategies.

Note: the examples provided include both Long & Short trades.

2nd Note: this ePDF has basic contents using standard price charts and the MACD indicator as its primary tool (plus multiple time frames analysis). It is a brief "Cliffs Notes" guidelines for the trading clerks/interns - but I believe it still contains excellent technical analysis "value" for T2W newbies/traders.

In closing - no matter HOW a chart is analyzed - the newbie trader MUST find a consistent, coherent, and high-confidence methodology to identify the dominant trend(s). He/she MUST also be able to reliably identify a good pullback point of attack - versus a reversal of the main trend. Achieving BOTH skills here allows the trader to then move to the next level - money management, bet-sizing.

If the T2W Staff gives its blessing and approval, I will send out the ePDF study guide to newbies/traders requesting one. Just PM me directly with your active (and accurate email please). I will batch-send the ePDFs this coming weekend.

Thank you.

WklyOptions

Good Morning,i would be very interested in this PDF.mY Email address is [email protected]
Many thanks Mike.

 

[NVP]

hey W

send me the pdf [email protected]

and dont be a stranger on my thread ...would love to hear more

N

 

[be-positive]

Hi, T2W members,


If the T2W Staff gives its blessing and approval, I will send out the ePDF study guide to newbies/traders requesting one. Just PM me directly with your active (and accurate email please). I will batch-send the ePDFs this coming weekend.

Thank you.

WklyOptions

Why not just post the pdf link here, so all that are interested can download

 

[WklyOptions]

hey W

send me the pdf [email protected]

and dont be a stranger on my thread ...would love to hear more

N

Hi, N,

The ePDF will be sent out to your email - Sun evening.

And thx for being open on your thread - will go over my FX swing setups this wknd and hopefully make a worthwhile post of some value/merit over on your thread soon!

Have a great wknd - wonder if California Chrome will break the 30+ yrs since the last Triple Crown winner...

Thx.

WklyOptions

 

[WklyOptions]

Why not just post the pdf link here, so all that are interested can download

Hi, Be-Positive,

Good question. It is certainly possible. However, hopefully if I can share enough posts, trading ideas/observations, options-related solutions for those who ask options questions, etc., for the T2W members - I hope it will not be too much nor unreasonable to ask for an active email for comms outside of the forums/threads.

I do not spam and I follow a privacy policy to all emails. In addition for future ePDFs, options-based and FX based scans and charts/analyses, I have found it easier for me to just send things direct from the server/desktop to my email management system. I can just open up the email system, write/attach/send immediately.

My focus on the T2W forums/threads is to share/contribute/give value-added observations as best as possible. However, for more detailed Q & A dialog, I use emails (and PMs if absolutely necessary only). I find it more worthwhile being personal and direct via email communications one-on-one. In my communications to new friends here at T2W, and other forums, by using email - it is more personal and direct and intimate in my opinion.

I respect the point you are making. I just want to develop and forge new T2W trading friends - and I much prefer to communicate via emails and PMs.

Thx for your input, Be-Positive! Enjoy the weekend.

WklyOptions

 

[kc8flq]

Possible setup?

Thanks for the PDF WO.

Was going thru the charts today looking for setups according to the requirements spelled out fairly well in the pdf, thought I would post it here.

I like the daily for T1 trend identification and the lower T3 t/f would be 1H if I'm not mistaken.

So here is the daily and hourly charts for G-U.

Not sure this is one that I'd take tho, with that significant BRN at 1.7000.

 

[timsk]

I hope it will not be too much nor unreasonable to ask for an active email for comms outside of the forums/threads. . .

. . .I do not spam and I follow a privacy policy to all emails. . .

. . .My focus on the T2W forums/threads is to share/contribute/give value-added observations as best as possible.

Hi WklyOptions,
No, I'm afraid this is not acceptable to T2W.

There is absolutely no reason for soliciting e-mail addresses in order to send out pdfs - or anything else. If you're happy to distribute your work, please do so publicly on the boards. If, subsequently, members choose to contact you privately - that's their decision. You say you're not a spammer but, unfortunately, this is precisely the tactic that spammers use. If your reason(s) for being a T2W member are genuine and you wish to participate in the forums for the benefit of the whole community, then the best way to achieve that goal is to do it openly, publicly and transparently and not privately behind 'closed doors'.

Thank you for your co-operation!
Tim.

 

[WklyOptions]

Hi WklyOptions,
No, I'm afraid this is not acceptable to T2W.

There is absolutely no reason for soliciting e-mail addresses in order to send out pdfs - or anything else. If you're happy to distribute your work, please do so publicly on the boards. If, subsequently, members choose to contact you privately - that's their decision. You say you're not a spammer but, unfortunately, this is precisely the tactic that spammers use. If you're reason(s) for being a T2W member are genuine and you wish to participate in the forums for the benefit of the whole community, then the best way to achieve that goal is to do it openly, publicly and transparently and not privately behind 'closed doors'.

Thank you for your co-operation!
Tim.

Hi, Tim,

Ok, thx for info & heads up! Not a problem.

Will post to T2W community.

Regards,

WklyOptions

 

[WklyOptions]

Thanks for the PDF WO.

Was going thru the charts today looking for setups according to the requirements spelled out fairly well in the pdf, thought I would post it here.

I like the daily for T1 trend identification and the lower T3 t/f would be 1H if I'm not mistaken.

So here is the daily and hourly charts for G-U.

Not sure this is one that I'd take tho, with that significant BRN at 1.7000.

Hi, KC,

Great post & effort at learning and focusing on details. Lack of focus is a serious and very common skill-deficit amongst traders.

I have attached my fx chart on the G-U:

1. Daily on left side, H1 on right side.

Comments:

A. Yes - the T1 Daily shows good upside momentum - it is right at the previous Key High pivot zone - the highest risk = breaking out of a previous Key High zone.
B. Must be willing & ready to fire a 2nd bullet if the trade setup & Entry fails.

C. Very good - H1 chart showed the wide-range red bar with the T3 MACD Fast Line < 0 = okay for trade setup filter.

*** Learning Point ***

D. Note the very next T3 green bar - this is an "inside bar" completely in the shadow of the previous wide range red bar. For our setups - "inside bar" does not count as part of the setup phase.

***
E. The 2nd green bar shows PRICE moving > wide range red bar. PLUS - the T3 MACD Fast Line here has turned to the upside = confirms resumptions up upside trend & momentum bias.

F. The Buy Entry is = above the T3 2nd green bar's high. You can use whatever pips buy-stop or use options-based call/call spread strategies to enter = ONLY IF the T3 2nd green bar's high gets taken out.

G. However, G-U returned back down into the T3 trading range - and the T3 MACD Fast Line turned back down.

*** Learning Point ***

This trade setup = no BUY Entry = the setup is then negated as the T3 MACD Fast Line turned back down.

KC - it's okay to have failed setups! In fact, as part of any robust trading approach, there will be many trading setups that fail.

The important point is NOT to have taken an "incorrect" Buy Entry off the "inside bar" (since the inside bar is a null bar effectively).

Another thing to train your eyes for = learn to identify PRICE and MACD Fast Line momentum changes in the T3 time frames for whatever setups you find.

Well, hope the above info is clear and helpful. Feel free to post any more new charts and setups you find!

Great effort on your study and focus on details! Keep it up.

Best regards,

WklyOptions

 

[kc8flq]

Last week's setup on GU

Thanks for the reply WO,

Very informative info and thank you for the constructive feedback. We learn best from the mistakes we make. So that means I should know a whole lot!! Just ask my wife... Also good to know about IB's.

I was looking over the GU chart earlier and spotted this from last week. It should be fairly simple to see, once you know what you're looking at....now where'd I place my glasses...

Still in a decent uptrend by what PA is showing me. If you look back to mid-April the low wasn't taken out, so until that low is taken out or we make a new swing high by a CLOSE above the most recent swing high, which will give us a new swing low previous to the new swing high. So now that we're all thoroughly confused. ...
Looking back to the 11th, last week, it looks like we had a beautiful setup. The red verticle line marks it on my daily chart. Question, would a valid setup also occur when the fast MACD line turns up from down above the slow MACD and avove the 0 line? At which point we'd flip to the hourly. And only once that candle closed, so it doesn't give the infamous "repaint".

I marked the hourly where an entry would have been possible.
So would this have been a near perfect setup and entry WO or am I just blowing smoke up my own skirt?


K.C.

 

[WklyOptions]

Thanks for the reply WO,

Very informative info and thank you for the constructive feedback. We learn best from the mistakes we make. So that means I should know a whole lot!! Just ask my wife... Also good to know about IB's.

I was looking over the GU chart earlier and spotted this from last week. It should be fairly simple to see, once you know what you're looking at....now where'd I place my glasses...

Still in a decent uptrend by what PA is showing me. If you look back to mid-April the low wasn't taken out, so until that low is taken out or we make a new swing high by a CLOSE above the most recent swing high, which will give us a new swing low previous to the new swing high. So now that we're all thoroughly confused. ...
Looking back to the 11th, last week, it looks like we had a beautiful setup. The red verticle line marks it on my daily chart. Question, would a valid setup also occur when the fast MACD line turns up from down above the slow MACD and avove the 0 line? At which point we'd flip to the hourly. And only once that candle closed, so it doesn't give the infamous "repaint".

I marked the hourly where an entry would have been possible.
So would this have been a near perfect setup and entry WO or am I just blowing smoke up my own skirt?


K.C.

Hi, KC,

I may not be looking at the Daily T1 chart as per your notes above. However, my perspective is as follows:

1. The T1 Daily chart (attached) has MACD < 0 - that will disqualify any BUY setups on T3 at that time.

2. However - there is a wide-range green bar on T1 immediately after the orange arrow region on the attached chart. This T1 bar (after its closing 1 hour session) would have qualified the T1 Daily chart as qualified for possible T3 buy setups.

Be sure you review as to precisely why this T1 Daily wide-range bar qualifies.

Am I missing the time period you are referring to?

Hopefully I've answered the proper question/timing region.

Keep up the strong effort on focusing on the details - that is one of the professional trader's Standards of Excellence habits!

Thx.

Regards,

WklyOptions

 

[kc8flq]

Hi, KC,
1. The T1 Daily chart (attached) has MACD < 0 - that will disqualify any BUY setups on T3 at that time.

Evenin' WO

This cleared up a bit of confusion I had. Thank you..

So am I correct to assume that after a down turn from the fast MACD, as long as it' turns back up and is above the slow MACD and above the 0 line, it's valid to start looking for longs? and vice versa for shorts?

KC

 

[WklyOptions]

Evenin' WO

This cleared up a bit of confusion I had. Thank you..

So am I correct to assume that after a down turn from the fast MACD, as long as it' turns back up and is above the slow MACD and above the 0 line, it's valid to start looking for longs? and vice versa for shorts?

KC

Hi, KC,

Yes - for T1 - buyside requires MACD >0 and FL>SL and FL pointing up. Then can go down to T3 for "orderly pullback" setups.

Pretty simple and clear - avoids ambiguity, excuses, rationalizations...

Keep posting charts - always better to train eyes on as many qualified and non-qualified T1 and T3 setups!

Thx.

WklyOptions

 

[NVP]

Hey W

thanks for the recent PM and information ...........I like Macd's myself and this is a robust and steady strategy for sure ............I wish you all the best for the future

N