market direction

[wackypete2]

hehe... I'm inviting ODT back here to comment on your pocket money trading.

Peter

 

[N Rothschild]

funny thing is, that is my pocket money trading

 

[leovirgo]

lol dick told you not to post that!

yeh this was todays day trading, stuck 1k in an old spread bet account just to ease the boredom!

Just curious, this broker allows you 1475 / 200 = 7.5 margin for SPX? This doesn't even count other open trades. You were playing 4-5 markets on the same day. Which broker is it, I'd like to open an acct with them

How come Waterfield can print your statement?

 

[rawrschach]

His other open trades were in the real market, not here afaik

 

[wackypete2]

I picked up a few ES contracts earlier this morning at 1179. I'm a short term trader so looking to exit later today around 1183/84 level. I think i'm relatively safe here after yesterday's large drop and getting in below the close. We'll see.

Peter

 

[wackypete2]

The premarket run-up was quicker than I expected. Took off 4 contracts @ 1185 for +6. Holding 2 contracts. No hard exit strategy on those yet but def not looking to make losers out of them.

Peter

 

[advfntrader]

rothschild do you trade for a living ?

 

[wackypete2]

sold last 2 es contracts @ 1187 for +8
did well posting live forex trades in leovirgo's thread too.
Done for today and it's still early yet.


Peter

 

[rawrschach]

Here's hoping corn makes it above 364 today after 3 weeks of bs.

 

[Waterfield]

Just curious, this broker allows you 1475 / 200 = 7.5 margin for SPX? This doesn't even count other open trades. You were playing 4-5 markets on the same day. Which broker is it, I'd like to open an acct with them

How come Waterfield can print your statement?

SPX has very low margins for most SB agencies. It's IG index.
I've known him for a while and he sent it to me.
He's down in London so you'll end up getting some drunken late replies I reckon.

Phil.

PS. Advfn, are you serious?

edit: added margin reqs. open stoploss = to 6.4

 

[N Rothschild]

**** knows about margin etc, thats just a spreadbet account i use for the lulz now and again, i was only active in the ES no other trades on. my main account is with a futures broker in the US where i have all my posostion trades which are outlined in this thread

yes i trade for a living

 

[leovirgo]

**** knows about margin etc, thats just a spreadbet account i use for the lulz now and again, i was only active in the ES no other trades on. my main account is with a futures broker in the US where i have all my posostion trades which are outlined in this thread

lol.. I haven't used my SB a/c for ages. Ability to play 4 cars with £720, with stoploss order in, is smashing. I do have an a/c with IG but I never used it for SPX. Spread looks ok, too.

 

[Waterfield]

Cheeky buggers off to Gordan Ramsays tonight.

 

[N Rothschild]

the king has returned

 

[N Rothschild]

quick example here of why its so important to know whats happening in the pits!

highlighted area, market had come down to new lows, quite a bit of buying, your usual TA bs divergences looking like it was going to bounce etc etc. if you had been aware of what was happening in the pits, via sqawk box and the like, you would have known the locals were short and had been selling the very lows and as the market bounced a little they were trying to push the market to new lows to hit the stops. well 9 times out of 10 these guys get what they want..market broke the lows and took out a ton of sell stops!

a real easy trade!

 

[montmorencyt2w]

The only way to know what will work for you is to backtest various ideas. However, this is extremely difficult with options. So the alternative solution is to 1) read some books and 2) learn on the job.

Options are priced extremely efficiently these days, so you're not going to find a bargain. If it's cheap, that's because there is a reason.

So what is the average "cost of doing business" if you are hedging a trade with options?
i.e. on average, how much of your potential profit on a trade do you sacrifice by hedging it with an option? (I guess it is impossible to answer in simple terms, but maybe some examples?).

 

[N Rothschild]

ok, say you want to go long the ES, and you wanted to risk 10 grand. in the money puts, about 1,000$. so you would be able to buy 10 of them! 10 options = long 10 futures in the underlying. which is 500$ per handle. so the underlying would need to move 20 handles (200 points) to be in the money come expiration. so anything > 200 points = profit (hence these are position trades). In many cases you may well reach your target before expiration there for the options may well still be worth something which reduces the % cost from your final profit.

 

[N Rothschild]

Here's hoping corn makes it above 364 today after 3 weeks of bs.

finally, close of 375!

 

[FXTrend240]

you still short ES? 512 tick charts seems to show things that time doesn't, somehow.

 

[rawrschach]

Tick chart are awesome, makes a huge difference for daytrading imo.