'The Expert', what exactly was he on about?

[Lúidín]

As mentioned, you will quickly see what happens if you start executing exactly when the price breaks above previous high. If you are not fast, and think you know that the market is now going up, then you might just be in for one little surprise. What you have to realize, is, that anyone who predicts market direction for daytrading (long term investing is diff of course) does not really know what they are talking about, and to be successful you have to adapt to price changing, even if it means losing 4 times in a row, but, you will make sure you keep the losses small, and when it does move in your favor, then you lock your profit in. Scaling in and out is another game, but if you can't crawl first, then you will find it very hard to walk tall.

As the tws charts are crap, if you maximise the 30 min bar, you can change to candle to see it better.

 

[danjuma]

Are you subscribed to market subscriptions for US Stocks Data Bundle?
Is your account funded yet with any money?

Yes to both questions. However, if I am not mistaken, I think one needs to pay additional fees to get the deep book /level 2. I don't believe it's part of the US stocks data bundle.

Thanks for all the tips and encouragement. Will try again tomorrow and feed back.

 

[Lúidín]

I think you should have the levels on the booktrader showing with normal subscriptions, you can open a ticket with IB to see why you don't see all the bid/asks for SPY?
Have you tried your live account login to see if it works there.

 

[danjuma]

I think you should have the levels on the booktrader showing with normal subscriptions, you can open a ticket with IB to see why you don't see all the bid/asks for SPY?
Have you tried your live account login to see if it works there.

Logged into my live (funded) account; not there. I checked the subscription info, looks like the deep book is an additional paid subscription.

Took a trade today (demo of course). Shorted the break of the previous 30min bar high (@208). Ended up -$58. Had to close as coming to end of today's session. Though thinking about it now, I don't know why I opted for short when the 30m and 5m trend was clearly up! Have attached some pics.

 

[Lúidín]

There is nothing wrong with being wrong, but why did you stay in so long after it went against you?

The only way to learn is by doing what you are doing, but you must change as you go or you will just keep doing the same thing.

There are many ways to trade, and you must find one that suits you.

Do not be afraid to try different charts or setups, as what I suggested is only a guide, and you are the only one who knows if it suites you or not. The timeframes do not really matter once you can react to what you see, and don't make the big mistake of holding on to losers, as that is what will stop you from making money.

This is another setup, but more suited for trading the open. If not on laptop it would be slightly different with more than one chart, but it suits me and that is why I have it this way.

Lúidín

 

[Lúidín]

You also have another option if you don't want to put a lot of money into your trading account, and that is to daytrade using options.

You need to be very selective, as the spread will be very wide on most stocks, so it is best to pick the most liquid, like AAPL.

AAPL moves fast, which is what you want when daytrading, but again, if you stick with losers you will lose, that is a guarantee.

The other advantage of using options is that you know your max risk, what you pay, can not be exceeded, but you have to watch the delta and not pick a strike with a too low delta.

Lúidín

 

[Lúidín]

This is where IB is hard to beat, as it is very hard to get good charts for options and very few will beat IB here. No one can tell you what to do, but it is always better to trade the way that carries the least amount of risk, and for most they will not know as they have not got any experience and can only go on what people say, most of whom will only talk about what they have read somewhere.

Lúidín

 

[danjuma]

This is where IB is hard to beat, as it is very hard to get good charts for options and very few will beat IB here. No one can tell you what to do, but it is always better to trade the way that carries the least amount of risk, and for most they will not know as they have not got any experience and can only go on what people say, most of whom will only talk about what they have read somewhere.

Lúidín

Hello Lúidín, many thanks for the reply and encouragement. Yes, I admit I stayed in too long when I was losing. Options are not something I have really considered. Sounds all Greek to me. I think I will stick with stocks. futures or forex for now until I gain more experience before dabbling into options. I will keep at it and keep practicing until I figure out what suits me. Can't do any more trades this week as I am working in the afternoon today and tomorrow. Happy trading sir.

 

[Lúidín]

Do not underestimate the advantages of using options for daytrading "certain" stocks, as the ability to cap your loss per trade should not be dismissed lightly, especially if you do not have a good deal of experience with losing.

Normal option analysis can be very complicated, but if you are daytrading for very short periods then there is no need to delve into the nitty gritty of options analysis, nor use complicated strike combinations to try and capitalize on changes in volatility or premium decay.

It all depends on what you are trying to achieve, the length of time you are trying to achieve it in, and how much money you are willing to risk to try and gain a certain amount.

Lúidín

 

[danjuma]

Hello Lúidín, hope you are well my friend. Actually since you mentioned options, my interest has been piqued and I have been doing a bit of reading on them. Sorry I have not posted much. Apart from the fact that I have not had time to paper trade because of work and other commitments, I have also been doing a bit of reflection with regards to the best strategy/method that will suit me. Will start posting again soon.

Now

Do not underestimate the advantages of using options for daytrading "certain" stocks, as the ability to cap your loss per trade should not be dismissed lightly, especially if you do not have a good deal of experience with losing.

sounds quite interesting. Will look at this. Any tips you can give would be much appreciated.

Realistically, with he nature of my job, I have limited hours during the day (from 16.30 gmt) and limited days during the week (about 2 -3 times a week) to day trade. So I really have to sit down and think realistically the best strategy to adopt.

 

[Lúidín]

My suggestions as follows.

Read up on Delta & Theta and forget the rest for now.
http://www.com/the-greeks.aspx

Only trade one stock for now, and that is AAPL.

Only place 2 trades per week for now, on Wed and Thu night.

Only buy a Call if you think AAPL price will Gap up for next days open.

Only buy a Put if you think AAPL price will Gap down for next days open.

If you think you can do this, tell me why you think it is a good idea and how you are going to pick the right strike to trade?

Lúidín

 

[danjuma]

My suggestions as follows.

Read up on Delta & Theta and forget the rest for now.
http://www.com/the-greeks.aspx

Only trade one stock for now, and that is AAPL.

Only place 2 trades per week for now, on Wed and Thu night.

Only buy a Call if you think AAPL price will Gap up for next days open.

Only buy a Put if you think AAPL price will Gap down for next days open.

If you think you can do this, tell me why you think it is a good idea and how you are going to pick the right strike to trade?

Lúidín

Okay sir, will start on this from next Wednesday. Once again many thanks for your assistance, support and encouragement.

 

[Lúidín]

Okay sir, will start on this from next Wednesday. Once again many thanks for your assistance, support and encouragement.

NP, as I know exactly what it is like starting off. Many will have you believe that it is very easy to make money trading, but you will find that they are either selling you something, or not trading themselves.

It is very hard to make money consistently, but only if you are not consistent in what you are doing. If you focus on too many things then you will get confused and not make any real progress. One market, one stock, one method. It is all about making money, and to make money trading you might have to do things that you don't like, or that don't come naturally to you, but seeing as the flip side is losing all of your money and making you feel like a fool, then anyone with a small bit of common sense should realize that the quicker they get down to the business of trading, the better.

I have no doubt you can, and will, make money by trading options the way I speak of. But, you must realize that in order to do so you must be willing to stay at it, and keep trading, as all positive outcome trading results are based on a certain amount of trades, and the more you do, the better you get, and the better your results get.

Your biggest nightmare is drawdown, so, make sure you limit that at all times and the road becomes an easy one to travel.

I, and many others, do laugh when we see the car salesmen at work, for, the truth is that they cause you more bad than good, and put more obstacles in your way that you need ever encounter.

How do I know this, easy, cause I was once top of the class when it came to fools, until such time as I told myself that all of these experts are just talking out their arses, and just wasting my time and money:idea:

Lúidín

 

[Lúidín]

If you look at a 30 min chart for AAPL, then you can easily see the gaps and it will give you an idea of what type of move you can expect to see at the open, and, what can happen if you decide to hold and close out near the close of day.

Lúidín

 

[danjuma]

http://www.com/the-greeks.aspx

That link does not seem to work?

 

[Lúidín]

http://www.theoptionsguide.com/the-greeks.aspx

 

[AllLosingTradesFor2Years]

Hey! Just found this thread! I was wondering the same thing and I created my own thread to ask too!! Lol https://www.trade2win.com/threads/the-expert.241319/

 

[AllLosingTradesFor2Years]

All stuff and nonsense.

All egotistical nonsense designed to attract people.

Don't get mislead by my posts in that thread - a sprat to catch a mackerel !!

Don't waste your time with any such claims - trading requires personal analysis, formulation of a strategy and the development of a robust plan.

Simple as that !!!

Hi! If you don’t mind, can you point me on the right path? I have been trying for years and I have found myself stuck