Saturday, March 11th, 2017

My winning options trading strategy – what do u think?

Like many others, I deleted my whole principle twice making the trading of options in the past. In the process, I found a simple technique that has helped me recover my money and do something. . . that’s how it works: I keep a handful of actions on a daily basis for some weeks and get a good sense of their upper and lower limits. I have $ 10,000 in my trading account. Once I see a population close to one end of these limits, I place my first bet (buy call or put) that is approximately $ 500 (5% of my total). When my batch average price falls below about 30% to 40% of the current contract price, I can buy more contracts to reduce the average. Basically i chase the stock price in motion by averaging several times (only if it is in the opposite direction) and stay in the vicinity until it bounces off something a little and then I sold it all to benefit some calculations and discovered alguno.Hice that on the basis of my strategy of betting on the assumption that my first bet is 5% of my total cash reserves that literally can pursue the change of stock price by 50% in the opposite direction and still win money. Of course if the stock price goes beyond that point, I do not want to have more funds to continue – but that hasn’t happened todavía.Tan simple and this strategy may seem silly, I have money using this strategy in each of my past 18 offices – every time I had to up to an average of 3-4 times before I made $ – and turned a $ 2,000 to $ 10,000 in the last two months. Average $ per lap was about 30%. If these values in the direction of my investment (call or put) at once, then sell for a profit of 30% up – but from my first bet is small – the pequeño.Me would benefit is that the criticism of this strategy and tell me it will continue to work in the long run or not.

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4 Responses to “My winning options trading strategy – what do u think?”
  1. linda101 says:

    hopefully you are calculating the theta decay, that will have a large Impact either way.

  2. zman492 says:

    There are thousands of ways to lose your entire principle trading options. I think you have just found a third way.

    Every successful options trader I know has learned how to limit risk. You are choosing to increase risk when a position moves against you. I believe that is about as sure a recipe for failure as you can find.

    I am not a big fan of short-term trading, even though I do a little of it myself. One of the common principles of short-term trading is “Let your winners run and cut your losses.” It appears you are doing just the opposite.

    If you want to trade options successfully, I urge you to learn about using volatility and “the greeks” to choose your positions and lower your risk. These are not secrets. They are discussed in many very good books on options.

    That will not be a quick process, and since you are already trading you may night have time to learn what you need to learn. Therefore I have one specific suggestion: Take half your money off the table now. If you started with $2,000 and you take $5,000 out of your account and use it for safe investments, you cannot hurt yourself as badly. If you can keep up the same results you will be back to $10,000 soon enough. If not, at least you will not have lost everything again.

  3. Luigi says:

    Your method is similar to the method to “beat” roulette – pick a color (red or black) and every time you lose double the bet. The problems are 1) you only win $1 every time you win, and 2) in the end you run out of money.

    A better method may be to close positions if they have a 15% loss (thus limiting your losses) and sell half of a position that has doubled (thus getting YOUR money out and letting the winning position ride). I haven’t tried this; it’s likely you will have many more losing trades than winners, but if the market goes into a strong trend one way or the other you could make a small fortune.

    Good luck.

  4. john d says:

    ooh instead go for trading in forex…its simple and m broker gets me very good strategies to invest in this market…maybe you can get money through investing through him

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