Option Trading - akalawoo

Strangle All the way to the Bank

2007-10-03T05:07:00.000+08:00

2 GOOG OCT CALL 590 BTO 14.6 22:36:50 SLD 19.8 01:00:49
2 GOOG OCT PUT 580 BTO 14.7 22:36:51 SLD 10.0 01:00:44

Net profit: 95

2 GOOG OCT CALL 600 BTO 14.9 01:07:53 33.24% SLD 16.0 01:21:59 33.91%
2 GOOG OCT PUT 590 BTO 14.2 01:07:51 33.42% SLD 13.6 01:22:16 33.58%

Net profit: 94

Total net profit: 189

What is the best thing to do in a cRazy market? Well the best thing is to go for non-direction trade haha... Today is one of the best day to STRANGLE a stock. This is the first time i can take my strangle profit within a day or should i say within a few minutes. My second strangle only took me 15 minutes to make 100 bucks from 4 contracts which is very good.

IV play a major factor. The next coming stock that i will strangle is BIDU...

Defiant bull puts Dow at 14K

2007-10-01T23:47:00.000+08:00

The market is going crankier as the day goes by. It is so hard to put a direction trade now. Bad news coming in today like citibank, UBS and even the manufacturing data come in BAD. Did the Bad news affect the market ? Well not at all. Today the market just skyrocket fuel by BAD news . This is absolutely crazy. It is so hard to do Momentum trading. I wonder when will the market become normal again. Maybe somebody can tell me what is happening in this market?

The only reason that i can think of is the underlying bullishness of the people. Many people want and predict that the fed will cut rate again. Thus many people just buy and buy and buy. Okay i shall wait till the market go bad to normal before i do anything stupid. Yesh i still hold on to my stupid BSC PUT and once it hit my level i will just cut lost and move on with it.

Let see what will happen during the 2nd half of the trading day. WELCOME TO THE CRANKY MARKET ...

No more Free newsletter on Trading

2007-09-21T21:02:00.000+08:00

I amaze by how fast the free newsletter on trading is gone. I guess there are alot people sign up for their newsletter so they stop hiring google for advertising their newsletter. None the less, i upload a free internet marketing free newsletter for you guys to sign up.

Seriously you guys miss out the great opportunity to get the free newsletter on trading. I will still source for some serious stuff for you guys.

FUTURE UP UP UP

2007-09-21T20:15:00.001+08:00

The future indicate that the market will open slightly bullish. With no news and earning today, I guess that the market will bullish first then maybe some profit will be taking place at the later part of the trading hour.
GS seem to be doing well as most of it business profit is outside US. GS has a large number of business in China so most of it profit come from the Asia country. Google likely to hit the 600 Mark soon. A long call seem to be a wise choice for Google. A long Call seem to be a wise choice too. =)

This is just my personal opinion so please do your due deligent.

Free Newsletter on Trading

2007-09-20T12:53:00.001+08:00

Five Minutes a Day
Can Make You a Richer and More Successful Investor...

Investor’s Daily Edge is a free investment newsletter that’s delivered by email before the market opens. In each weekday issue you’ll receive clear recommendations and practical strategies for protecting your portfolio and multiplying your money – whether the market is rising or falling.

This is not a “news” publication, so don’t count on a recap of the biggest stories of the week. Instead, you’ll get a to-the-point analysis of what “the news” means to you – and how you should act TODAY to make the most money with the least risk.

Investor’s Daily Edge is written by a select group of market experts, each with their own style of investing. So whether you are a long-term investor, a short term trader, or a prudent speculator, you can count on useful advice you can take to the bank.

The market is constantly changing... that’s why you need an edge. And that is precisely what you’ll get with Investor’s Daily Edge. It’s yours for the asking. To get your daily edge on Wall Street, simply click on the link at the right side of the navigation bar (Free Newsletter on Trading), fill in your name and email. You can unsubscribe it anytime you want. So with nothing to lose and alot more to gain, just sign up Now.

Bad exit Trade Yet i still make Money

2007-09-19T03:49:00.000+08:00

GOOG SEP 520 3 Call BOT 10.2 SLD 12,14,16
Net profit: 1187

GS OCT 190 1 Call BOT 7 SLD 13
Net profit: 600

Total Net profit: 1787

Argh!! im not very happy... i sold my GS call too freaking early ... if i can slow down by 1 minute, that will make me another 150 buck ... wao kao .... idiotic... it really shoot up till 200. Yesh!! and my call should have profit more. Actually i have another GS contract which is a Put. My strangle earn about 70 buck if i cut my put contract. I just leave it run cos at the most i will lose 60 buck only ... so if this is just the fed rally ... woohoo.. and GS drop back till 190 or 185 ... i will make both way.

Oh when i look at my GS call i just feel like vomiting ... argh!!! it run up to 200... geeZzz... i can make at least another 150 buck which mean even if my put become 0 i still will make from my strangle. Aww man ...

Okay... Well at least im not losing... =)
__________________

Scalp Google All the Way

2007-09-13T06:18:00.000+08:00

GOOG SEP 520 3 Call +184
GOOG SEP 530 2 Put +106

GS SEP 190 1 Put -27.86

Total Net Profit: 262.14

Today is a very busy evening for me. This is the first time that i traded the whole trading hour in AKLTG(my part time working place). I work and scalp at the same time. I scalp 6 time and all are profitable. Actually i make 40 buck on GS and why does it show as a negative ? This is because i have another same put that i brought at a higher price yesterday. Well i'm very happy with my scalping performance today. Perfect Score. I traded Google up and down. I go for the 1 candle movement. I scalp on the 5th candle reversal. Very powerful and super accurate as i combine it with my minimun risk entry. I seem to trade better in a Flat day. Support and Resistance is the best indicator in a FLAT DAY. Tomorrow will be another tired day for me but im looking forward to it. Wealth Academy will start tomorrow. See ya Guys. Happy Trading. :D

Business Equal to Trading

2007-09-12T04:10:00.000+08:00

GS SEP 190 4 PUT -594.86
GOOG SEP 530 PUT -42
GS SEP 195 PUT +18

Total Net lost: -618.86

Well today is my second consecutive losing day. Hmm... am i really sucks? I really dont't think so. Losing trades just show you part of the story. I did cut my losing trade so not to lose so much. The GS 4 Put is belong to a yesterday trade. Yup im sucks that yesterday. Im ought to be killed. Through this losing trade, i realise something that is very consistent in technical reading.

The Minimun Risk Entry is such a powerful entry time. Today i just follow the minimum risk entry and i never get killed. The google PUT is a mistake that why i cut off so early.

I brought the GS 195 sep put too early and took profit too late. Why did i took the profit too late? I never draw my fibonacci properly, as in i draw it too wide, that means my profit target become wider.

Trading is just like a business, Sometime you make money, sometime you lose money. So take it as a lesson and learn something new from it.

GS Make A Spectacular Comeback

2007-09-11T04:26:00.000+08:00

---------------------------
1st half of the trading day
---------------------------
GOOG OCT 520 1 PUT +518
GOOG OCT 530 1 CALL -492
Net profit: 26

GOOG OCT 520 1 CALL +38 (scalp)

GS SEP 185 3 PUT +54 (friday trade + today scalp(make 200))

GS SEP 210 10 CALL -185 (one of the strangle leg)

Total net lost: -67

-------------------
2nd half of the day
-------------------
GS SEP 190 3 PUT -517.43
GS SEP 180 1 Call -162 (sell call)

Net lost: -679.43

Total net lost of the day: -746.43

Well i lost abit but in actual fact i did make some in the first half of the day. The GS 10 call is suppose to be one of the strangle leg that i brought last week. This is another mistake i make on strangle. The time decay is eating up the profit of one leg which is put. Both leg are losing money. But i already cut this call leg and let my put leg run abit as i know today GS will fall.

GS sep 185 3 Put - I was losing 2 Put for about 200++ when GS gap up today. Then when GS reach 183 i buy in another put to average it as i see that GS will free fall. So i have turn my losing trade to profitable trades. =)

The google call scalp is a nice one as it is a 8 candle reversal scalp =)

I just cant figure out how come GS can ride up to so freaking high in a bearish day for most of the day. Im waiting for the reverser till i vomit blood. It come at abit too late. It only started to vomit in the last 30 minutes of the trading day. If base on MRE, this trade really make me look stupid. What a bad day !!! I still contispate on some loses. ARgh!!! It will be another rollarcoaster week. I shall see how the market perform tomorrow.

Jumpstart to Trading

2007-09-08T23:14:00.000+08:00

Hey i have just added a few articles. These articles will benefit to people who are new to trading. By knowing how to read Japanese Candlestick, it will be easier to understand the charting too. Often i got alot of question on when is the best time to trade. Seriously i don't think there are any best time window to trade. Different kind of trader will trade in different market window. So it really depend on the individual. I will continue to write some articles and compound it. The purpose of doing this is to educate those people who do not have any trading knowlegde. Through the compilation articles on trading, I hope that you guys can pick up the basic from my blog then procced on to further trading education.

Newbies Guide
- How to create an online account / virtual account
- How to draw support and resistance lines
- How to read Japanese Candlestick
- Market Window

Financial Sector Fight Against the Market

2007-09-08T04:59:00.000+08:00

GOOG OCT 510 2 Put +537
GOOG OCT 540 2 Call -483
Net Profit: +54

GOOG SEP 530 1 Call -422
GOOG SEP 520 1 PUT +198
Net Lost: -224

GS SEP 185 2 Put +56.5

Total Net lost: -113.5

The Market is very bearish today but if you just look and base on today performance, Financial sector are doing well. GS has been going up and up. I made some money through scalping GS.

The Google strangle that i lose money is not really a PURE strangle. Actually it was suppose to be a scalp that i traded on wed. I brought a call and i expected it to go up. Yes the option did go up by 30cent, but i was abit greedy and i didnt take profit. Then immediately it went down. Actually im not losing alot when it go down, most probably 100++, then i was considering to buy a put for protection. That why i went to buy a put. Yeah, Stupid me as the slippage is 80cent and is not a PURE STRANGLE. When google Tank to 518 today, i still lose money as the slippage is wide and the time decay is freaking scary.

This is a lousy trade and i should have close it early. I really have to get my psychology right.

No Sweat Strangle GS

2007-09-07T04:09:00.000+08:00

GS OCT 185 2 Put +116.5
GS OCT 175 2 Call +36

Net profit: +152.5

This is a nice strangle that i brought a few days ago. I brought it on tuesday. At first the slippage was about 50 cent. So today when i go back home and open up my IB woot. I make money from both my call and put. Wonderful !!:D I just love it as this is the best part for this strategy. Yeah it seem to work on GS too. Nowaday i use this strategy is because i have limited day trade and so i have to roll over my trade for the next day. Slowly i have to create a system to suit my small account. GS is the next stock that i pick on to test it out. I just love the stress free method by using the power of option. Wow!!

Today i learn something new from Bill (OU Instuctor). It is somthing like buying a stock but using option. The main benefit of it is i can keep on profit taking as the stock move up, thus it reduce the fear of the market turn against you as you have limited your loses. The wonderful thing about option is it can reduce your risk in trading. It act as a leverage too and you can make use of option to make profit even when the market go sideway.

If you are dead serious and interested in learning option strategy, Do come down to Amara Hotel at 6.30pm (07/09/07) for a preview by OptionUniversity. I know is abit late to tell you guys about this wonderful news but the course will only start on this coming november. If you are really interested, you can just drop me a mail at akalawoo@gmail.com to ask for more detail.

My Daily Small Profit

2007-09-06T03:49:00.000+08:00

GOOG OCT 510 1 Call +768
GOOG OCT 530 1 Put -722
Net profit +46

GS OCT 150 5 Put +142.5
GS OCT 210 5 Call -132.5
Net profit +10

GOOG SEP 530 1 Call +88
GOOG SEP 510 1 Put -32
Net profit +56

Total Net profit +112

I didnt trade much today as im quite tired. The market is very bearish yet google is having such a strong run. Im not really surprise with such a run since technology stock has been doing quite well lately. Just have to wait for the break out of 530 from Google. We shall see how it going to react the next few days. Yawn i shall go to bed now

happy trading

Free Forex Trading Platform

2007-09-05T04:42:00.000+08:00

Hey guys, if you are interested in trading forex and you do not no which forex Platform to use, I have a recommendation. Do check out the links Under Free Forex Course and Platform. The 2 links are absolutely free.

You can open a demo account to paper trade and get the hang of it.
You can make use of the tools that they provide.
One of the link even give you free 5 days course.

You have nothing to lose, and Maximun gain =)
Happy Trading...

Daily Winning of GS and Google

2007-09-05T04:11:00.000+08:00

(Buy from Friday)
GOOG OCT 540 CALL +408
GOOG OCT 490 PUT -382
Net profit: 26

(Buy from Friday)
GS OCT 185 Call +128
GS OCT 165 Put -102
Net profit: 26

GS SEP 180 Call +88 (2 hours)

Total Net Profit: $140

Today the market react very nicely. I scalp GS to take some profit. From the insight i should have wait for it to mature. GTS1 work for even when buy on friday but the earning drop due to the time decay. I press wrong button today when im going to close another strangle strategy. I wanna sell but i press to buy. Then i just brought another leg to make another strangle. If not i will be able to profit it. It seem like the strategy work for GS too. = )

Seem like the market is doing quite well now but anything can happen. We shall see how it perform tomorrow. Well technology stock seem to be going strong. =)

How to Draw Support & Resistance

2007-09-04T02:02:00.000+08:00

Ever wonder what are those lines after lines when you see those stock chart ??
Ever wonder what are Support and Resistance lines ??
Well if you have all the Question Mark on your head. Feel free to visit my link http://otakalawoo.com/support-and-resistance/ .

Please give me some feedback as do you think it help you understand what is support and resistance. Thank you very much for visiting my humble blog. Happy trading.

How to Create an online account (optionsexpress)

2007-09-02T05:53:00.000+08:00

I have just write up an article on how to create an online account (optionsexpress) and virtual account for trading on my website. If you are interested to know more about it, feel free to visit How to Create an online account.

3 Easy Way To Manage Your Greed

2007-08-31T20:48:00.000+08:00

There are several way to control or manage your greed. These are the following ways...

Systemize your trade

- Set your profit target even before you went into a trade. Put stop loss to protect your losses and let it run automation.

Take profit off the table and Let 1 run ...

- If you have more than 1 contract and you are in a winning position, Take profit first and let 1 or 2 of your contract to let it run. At least if the trade turn against you, you wont be losing.

Being the Third person

- Ask yourself question. What will the Gurus do ? what will the professional do ?

I sincerly hope that the above methods will help you to do well in your trading when greed slowly creep into your brain.

Trading without stress in a confuse market

2007-08-31T04:07:00.000+08:00

GOOG OCT 510 Call +88 (ATM)
GOOG OCT 510 Put -52

Net profit: 36

GOOG OCT 520 Call +108 (OTM)
GOOG OCT 500 Put -72

Net profit: 36

I traded google yesterday when google is at 510. Today i took profit when google traded at 511.

Well i know for sure is not the price of the google that make the profit but is the OPTION of the google. This is the power of option strategy. Seriously when i traded this way, i really have no stress haha. ;D Im still in the mist of finding out how the greek really work for this kind of strategy.

Im looking forward to attend OptionUniversity course which is run by AKLTG this coming november ... ;D

What is Greed in trading?

2007-08-30T19:56:00.000+08:00

Greed is an inordinate wanting, a longing that is out of control. Greed by its very own definition can never be satisfied.

Every trader or investor will experience Greed at least 1 time during trading. Without the Greed factor, there wont be the wanting to trade. Greed make a person want to risk their own money to make MORE MONEY. You need to be Greed with proper control will be an aid in trading.

"The point is, ladies and gentlemen, greed is good. Greed works, greed is right... and greed, mark my words, will save not only Telder Paper but the other malfunctioning corporation called the USA" by Gordon Gekko in "Wall Street"

- How often did you take profit and realise that you took it too early?
- How often do you rush into a trade because of the greed of wanting not to miss the opptunity to trade?

I will share how to manage your greed on the next article.

GS vomited but i profited

2007-08-30T02:19:00.000+08:00

GS OCT 170 PUT BOT 7.50 SLD 8.9

Net profit: 140

Er im happy because i make money. But im not happy with my performance because i lose 200 buck profit as i too quick to take my profit at the opeing bell... geeZ

I wanna buy a call when it hit 168 as i know it just the stupid fake the gap thingy. But i have limited day trade and yes im not at home so my body system tell me not to trade.

Some thoughts to ponder

What will you do if you see dow at 90+ at the opening bell and you wont be free to monitor your stock? Will you take profit like what i did? or will you just let it run? or will you just put a stop lost?

Strangle Google

2007-08-29T03:45:00.000+08:00

Brought it on monday when google around 512

GOOG OCT 540 C -172
GOOG OCT 490 P +268

Net profit : 96

Brought it on yesterday when google around 515

GOOG OCT 530 C -262
GOOG OCT 500 P +368

Net profit : 106

This is the strangle strategy that i used and make a small profit ;D. The above prove that not much different between the 2 set of strangle. I notice that VIX play a big part as i brought it when VIX is low as compare to today. I choose these OTM contract because it is relatively cheap like around 1k + per contract. The total slippage between the 2 set of trades is roughly around 40cent - 60 cent which i find it quite cheap. As im writing this post, google just drop another 3 bucks. 8-)

News is the catalyst for this strategy to work!! ;D
Wanna say thanks to Jack and Chiu for telling me more about my this strategy as i can buy cheaper option (OTM) and also take note about the IV , VIX thingy.

Small notes: This post is not to show that how much i make but to share that this strategy does work and i havent lose money using this strategy ;D

FEAR in Trading

2007-08-26T20:22:00.000+08:00

What is FEAR ??

Fear in its myraid forms is the most uniquitous of trading emotions, followed in a close second by its partner, greed. So common are these two emotions that they have become cliches to represent in simplicity the whole of the complex trading experience. Fear in a nutshell is something that we afriad, worry and also dun feel at ease with.

We fear of everything, from small losses to total financial ruination, even when we are winning we also fear that we will lose all the money back to the market. We fear failure. We even fear success. We fear of unknow, and in trading everything is unknown because the future is not knowable. We fear the news, and we fear there will be no news. In a nutshell, we are afriad or we are afraid we will become afraid.

"Applying fears to hopes, and hopes to fears, Still losing when i saw myself to
win" by William Shakesphere

Terrible Trading week

2007-08-25T02:41:00.000+08:00

My pitfall on GS

This week is the most terrible trading week for me. From making 30% of my partfolio till losing 20% of my partfolio. What i really did wrong is my psychology.

What really affect my psychology are the following factors...
- Greed and Fear
- I cant scalp too many time due to the small account
- Let my emotion take control of my trading system

My mistake mainly come from the fact that im greedy. I have 2 scalp which can make 50 buck respectively but i didnt not profit take as make a lost of 150 each. I let my scalp to run over next day which affect my whole trading system. I lost quite alot of money on time decay as im holding on to my sept contract put which at first making 1.3k last thur when it hit 158 and when friday open i make a lost of 200 buck then i can make back 100++ buck on the day itself and monday but i did not take it.

After this week, it really prove me that trading need the right frame of mind and the right psychology if not you will be beaten by the market. Always trust the indicator and the system that you have set for yourself. If you let your feeling take control of your trading you will difinately suffer from it.

This week i didnt trade on google as im too focus on GS. Google has been doing quite well recently and i guess it will pause for a while and rally up. If google break above 530 and the market is doing well i will just buy a long call. Recently the trend of google is it will react according to the nasdaq which it dun usually does it.

i will be watching GS too for the next week as it is going a sideway trend which might break up or break down depending on the subprime issue.

Anyway im still quite happy with my trading no doubt i make a loss of 20% of my partfolio. I will do better next week and not let my feeling take control of my trading.

Happy Trading =)

Update for the Week

2007-08-19T20:29:00.000+08:00

I was busy on thurday and friday that why i did not update the blog. Thurday i make about 600 buck from Google trading system1. I didnt capture my winning trade as i have to rush out to airport to show my friend around.

My GS almost drop till the predicted 155 on thur which hit its low at 158. With the news that the market has make 10% correction, the market immediately rebound and so do GS stock rebound from 158 till 170 at the close and close up by 6 buck. Then on friday before the market open the FED cut the discount rate from 6.25% to 5.75%. The whole market from bearish change till Super bullish so do GS from 170 jump till 180.

My sept GS put contract from profiting till break even. I did make 100 buck when GS drop from 180 till 170 and close back to 175.

Has the market recoverd?

Personally i dun think that the market has recovered as the subprime and credit issues still havent resolve yet. What unlce Ben did was to put a "bandage around the wound" to stop the wound from bleeding. Without the rate cut, Friday might be a very bearish day since the Japan market closes it low on friday and most of the asian market has suffered from it.

Analysis on Goldman Sach GS

According to my technical analysis, GS might still hit my 155 level or even below at 146. This is because the techincal analysis shown a third Elliott forming up soon. First wave it hit 179 low and 2nd wave it hit 158 low and third wave will hit at ?? . From my analysis it will most likely hit at 146.

When will GS hit the 146 level ?

Most likely it will hit that level either next week or first week of september. If it never hit it, most likely it will form another trend. Therefore i will keep a close look on the market next mon and tues which will be very crucial.

overall both my account grow by 10% for this month at the moment.

Being Burn on Google ??

2007-08-16T04:21:00.000+08:00

GOOG 510 AUG 10 CALL BTO $8.70 SLD $2.8

Net Loss : - 5.9k :'(

GS 180 SEPT 2 PUT BTO $15.30 SLD 16.30 (1130 - 1245)

Net profit : 200 ;D

GS 180 SEPT 3 PUT BTO $15.30 SLD 16.30 (0148 - 0221)

Net profit : 300 ;D

Net lost -5.4k :'(

I have a mix feeling today too. The only mistake that i make is that i should not wait for google to tank then i start to cut lost but i still cut it as i know it will tank down.

Nowaday im in sync with GS. I just know how it going to react and smack right there like a bull eyes. Anyway im making 300++ on my GTS1 which stand for google trading system 1.

If you guys read my blog, you will know that even when i lost almost 6k, i still make money as a whole. This google failure trade is MAINLY due to GREED. I already have a system but i didnt follow my system which turn out to be a painful lesson. I will come back even stronger as you can see when i lost 6k immediately im earning back 1 k (300++ from GTS1 & 500 from GS) ;D

That why when trading alot depend on your psychology. Without the correct psychology you cant trade or invest as you will tend to defeat your ownself through THIS THING call GREED AND FEAR. My google trading system(GTS) which i discover during the course of trading google consistently profitable. This GTS dont have any fault to blame as i have more than 3 chances to break even my this trade.

Why i lost 6k in google ??
- Mainly because of my greed
- Didnt cut lose and let it go deeper
- Didnt follow my own set of rules
- Im using GTS3 which is the most risky strategy as compare to GTS1 and GTS2.

read more ...

Mix Trading Day

2007-08-15T04:08:00.000+08:00

I still have position in my account which are Goldman Sach(GS) and Google. I have a mix trading day today. I earn alot from GS vomitting but i lose quite alot from google vomiting too. The disappointment come from my beloved stock google. I have at least 3 time to break even my google call but i didnt do it . I violate my own rule and google trading system. For today google didnt react to the opposite of market trend but it did short reverse a few times ....

Read More ...

Google love to go against the market

2007-08-14T04:07:00.000+08:00

GOOG AUG 1 PUT BOT 12.70 SLD 13.30

Net Profit: $58

Yeah I just love to trade google. im waiting to take profit also from google call tomorrow. ;D ... Im making abit from GS vomiting. :) which i brought at 179 last monday.

So do you guys still think subprime/credit problem over yet ??

read more at www.otakalawoo.com

Welcome to my new personal .com

2007-08-12T20:36:00.000+08:00

Hey i just have a new personal domain http://www.otakalawoo.com/ . I will break up my writing entry as the following:

http://www.otakalawoo.com/

- My own trading Strategy (Google)
- Option basic
- Technical analysis
- Fundemental analysis
- Daily Trades
- Many More Stuff to be included

otakalawoo.blogspot.com

- Daily Trades

For those who are new to my blog, i would like to say a BIG WELCOME to the world of trading. For those who visited my blog, i would like you guys to visit my new domain otakalawoo.com as i have put up many interesting stuff regarding trading and options.

As promiss , i have already write up my Google Trading System strategy 1. You guys will be able to read it at my new site http://www.otakalawoo.com/ .

Thank you guys for the support of visiting my blog. I will make it better and informative as i can in my new site.

Interesting US market - Subprime problem

2007-08-11T04:50:00.000+08:00

The downside of having a small account

I just landed myself in a cold turkey treatment yesterday without knowing it. ZzzZzz but i still making money from my sept put contract on GS which i just let it run ... haha guess i have to use another account to trade till i GET OUT OF JAIL being a day trader ... My release date will be next week wed or thur, im not very sure ... yawn

Interesting US market - Subprime problem

Do you really think that the market will recover next week ?
Do you think that the subprime problem will be ease by the injection of fund ?
Do you think that the market will not tank?

Personally i think that this is just the beginning of the subprime problem as it just spread globally. Alot of action being taken to cover the seriousness of the subprime effect. The fact that it is still a major concern to the FED and globally, it will still pose a problem and lead to a tanking in the whole world market.

From the technical analysis point of view , it is good for the market to take a correction or tank as it has been having a hell of bull run for the pass few months. I think is a 52 months bull runs if im not wrong. It is very healthly for a correction so that the market can have another major bull run which i think will most likely start on oct this year.

So i shall just see and go with the trend =)

Have a nice weekend

Good day to trade Goldman Sach

2007-08-10T04:40:00.000+08:00

BOT GS 180 1 AUG PUT $2.20
SLD GS 180 1 AUG PUT $2.60

Net profit: $38 (13mins)

BOT GS 180 1 AUG PUT $3.30
SLD GS 180 1 AUG PUT $4.50

Net profit: $118 (3hrs 20mins)

BOT GS 180 1 AUG PUT $4.30
SLD GS 180 1 AUG PUT $5.10

Net profit: $78 (2hrs)

Total profits: $234

I just love the way the market react today. It is just so predictable ;D. I trade till i cant trade anymore, maximum 3 trades ZzzZzz . Indicator just tell me the whole story for today. I didnt manage to maximise my gain but im still happy with $234 profits today. ;D.... Seriously speaking even when i win money i still feel tired after finish trading.

Trading sap alot of my energy from just sitting there ... reading the news and doing some of my stuff.

Today i never trade google is because im concentrating on trading GS. If i have traded google i will still make money as my system work when google are moving either up or down it dosent matter as long as it move. For today, i will be able to gain both way of google making up and down... so nice =)

Will the subprime continue and spread to asian country ??? you will know the result soon :P
Singapore market will likely to tank on friday 10 of aug.

Market is Crazy !!!

2007-08-09T03:55:00.000+08:00

GOOG 510 AUG 1PUT BOT 2.3 SLD 2.8

Net Profits: $48 ;D (1hr)

GS 190 AUG 1PUT BOT 3.4 SLD 4.6

Net Profits: $118 ;D ;D

Total Profits: $166

I shall say that my GOOG trade is beautiful. I trade it without any emotion cos i know google will come back since it go so high up at 525 and my target price for it to drop is 520 which it did hit but i play safe so i profit take at 521. ;D

My GS trade is giving me alot of problem. I brought it yesterday at 194 when GS is at its high just before the fed annonuce the news. After the fed annonuce the news, GS went down as what i have expected. So i wait for it to hit the level that i want it to hit which is at 187. So it just hit there and bounce back to 194 within 15mins.

So i was earning 300 , then 200 , then 100, then 0, then -100 .

But i still hang on to it as i see no reason for GS to went up within 15 mins . That is super crazy!!! so when it cool down abit it go back to 191 and i can profit about 50 buck but i did not.

To cut the story short, GS went up to 198 at 10plus today and i was losing about 200++. So from profit taking, i was preparing to cut lost but i didnt as my indicator didnt show any signal to cut lost. Then at 2pm SG time GS just vomited from 198 till 189 ... woo ... ;D

What i really want to say --- Trading is a whole lot of emotion game. For me im kind of emotionless as i read the indicator but no matter how emtionless i am, I still experience a great deal of pressure from the market.

IF you have Heart Problem ... Please do not trade high profile stock ;D

What a week of trading ... Even a strong heart will become a weak heart.

How i keep posting winning trade on google is because i have a system. A system that allow me to check my emotion which dun let my greed and fear take control.

Im most willingly to share my system of trading google with you guys BUT it wont be benefit to you as this system is i created for my own personality. Therefore a good trader is a person who can create their own system through learning the basic skill of technical analysis and fundmental analysis.

Just like even a striker who person a same role have different kind of strategy/system for them to get pass the defender and bring the ball to the net. Good Player are those who create their own special skill through basic kicking, passing, tackling and many more.

I will share with you guys some of my strategy this coming weekend as i have to rush for my project . Im still a university student = ( But you guys have to test it out on paper first and see if it suit the way you trade.

Happy trading guys =)

Google is dangerous to trade if you don't have a system

2007-08-08T04:26:00.000+08:00

GOOG 500 4 CALL BOT avg 15.9 SLD 19.7

Net profit is $1523 ;D

I brought the call at Last friday, I was averaging call when it went down on friday so i held on till Monday. Monday the price rise up and i dun want to average again so i just let it run. So Today as i know that the FED is going to speak and this mean the prices will go up and down. Then i make use you the price surge and straight away i took my call profits.

Thats why i didnt post any yesterday as im looking after my call position.

This Averaging strategy is HIGHLY DANGEROUS if you dun have a huge account . For me i have 10k so im okay with it. To be frank, my 4 call postion lose about 1k on friday.

The main reason i held on to it is because i see no reason why the market can crash down during the last hour.

This average strategy is one of the strategy i use to trade on Google but is also the most HIGH RISK strategy which i only use 3 times during the time i traded on Google. I prefer to use a less risk but consistent return of 100 buck a day strategy =)

Thank you guys for loving my blog

2007-08-08T00:59:00.000+08:00

KJ said...
Lawrence,

I am really inspired by your blog. I too would
like to create something like yours, to share the knowledge, hope you don't
mind. May I check with you, do know know anything about ETRADE?

I
currently holding an OptionsXpress acct, din know they suck so commissions.
Thought if we trade 10trades, we just pay a total of USD15? Any advise?

hi Kj,

Im not very sure about ETRADE but i know that they provide some useful tools. When i find out more about ETRADE i will difinately share with you guys.

The commision in OX work in this way ...

- No matter how many contracts you buy (be it 1 or 100) you have to pay $14.90
- which mean for every transaction you have to pay $14.90

- so to make it simple ... if i buy 1 contract on google i have to pay $14.90, then when i sell the 1 contract on google i have to pay another $14.90. Therefore the commision to buy and sell an options is $30.

hi online options trading,

I traded google for almost 3months plus. I have make alot of loses and wins. Overall i have grow my account trading google. i will share with you guys soon on the trading system that i use to trade on google. =)

regards,
Lawrence

Optionsxpress the best paper trading platform

2007-08-05T18:18:00.000+08:00

manojsai said...
nice blog.which site do you use for paper trading and which site would you recommend for paper trading in options.

Hi manojsai ,

Thank you for spending your precious time on my blog = ). Personally i would recommand you to use Option Express for paper trading.

1. OptionsExpress is FREE as long as you DONT FUND IT.

2. OptionsExpress provide WEIGHT to your Trading. ($15 commision per trade). If you can consistently profitable in OX paper trading, When you use Interactive Brokerage (IB) commision which is roughly $1 , you will have a good time making alot of money.

3. OptionsExpress provide WONDERFUL CHART, TOOLS and other Stuff

With the above 3 points that i mention, i really think that OptionExpress is the best paper trading platform for the moment as it really hone my scalping and day trading skill. = )

Happy trading

The Power Of Implied Volatility

2007-08-04T19:43:00.000+08:00

I really amaze How Option can Benefit you regarding of the stock price.

My GS 180 call and 185 put option Price suddenly increase even though the STOCK price (181+-) never move.

This is because of the change in implied volatility - one of the fundamental (but yet basic 101 options knowledge).

On my GS, Im buying ATM / OTM options. I was paying for extrinsic value. So, if a change in the direction in my favour (delta), and/or a surge in implied volatility (which my position will benefit because of the long vega), will help me make money.

That's the reason.

Rollarcoaster Ride on GS and Google

2007-08-04T04:13:00.000+08:00

GS 185 1 PUT BOT 11.9 SLD 12.4
Net profits: $48 ;D

GS 180 1 CALL BOT 13.4 SLD 13.8
Net profits: $38 ;D

GOOG 520 PUT BOT 14.3 SLD 15.3
Net profit: $98

Total Profits: $184 ;D

Wao today i saw something happening during the Last 30 min of the trading day. My GS 180 call and 185 put option Price suddenly increase even though the STOCK price never move. I really amaze how option can work for you. I will go research more. Today make a decent amount even when the market super crazy, just like having a rollar coaster ride. The Last 10 mins is like when the ride reach its peak and FREE FALL ... woooo.... ;D

Trading Google without Fear

2007-08-03T01:14:00.000+08:00

GOOG 520 1 PUT BOT 15.9 SLD 16.4

Net Profit : $48

GOOG 500 2 CALL BOT 19.2, 18.3 SLD 19.1

Net Profit : $66.50

Total Profit : $114.50

Yeah... I just love the way i trade. No fear whatsoever the market doing. Im contended with 100 buck everyday . It just took me like 1 hour to make 100 buck . I start trading at ard 10 and taking my profit at around 1130. My system work best for the opening period. The shortest the time to make my 100 buck the happier i am as i dun like to wait haha. Happy trading!!

Trading Google can be dangerous

2007-08-02T07:11:00.000+08:00

Trading Google can be dangerous if you do not equip the right skill to trade it.

GOOG AUG 510 6 CALL
BOT at (15.2,15.2,14.2,13.4,12.6,12.3)

SLD at 14.20

Net Profit $239.5

Yesterday i never post winning trade because i was constipating my 5 contracts of google. My own rule tell me not to trade on yesterday but i broke it. I broke not only 1 rule but a few rules yesterday. The most important rule is i should let the price to reach its target before i take either a call or the put depend on the direction(bullish or bearish).

I should be able to take both my PUT and CALL contract but i didnt. I cut lost on my 1 put contract as google going up ... and brought a CaLL which is abit stupid as it will increase my risk. then from then on i know that google cant really go up as it keep on going down so i just avg it as it went down ... At a point actually i can make about 40 - 80 but i dun want so i have to constipate my 5 contracts when the market close.

The feeling is so ARGH!!! >:( ... but im okay and cool with it because i have this encounter not too long ago. So when market open bearish today which i kind of expected. I knew that google will just be bullish haha ... then i went in another call when it at around 510. When it hit around 514 i knew that i just have to sell all my call to take profit as im wont be able to monitor the stock and play safe to take money first. ;D

I still satisfy with my strategy and i really have to stick to my strategy haha. ;D I found that it will be easier to trade google having 10k capital than 5k using my strategy 8-)

Just to update... I have make around 3k during the month of JULY. ;D My capital is 10k. so i make around 30% this month =)

-------------------
WARNING!!!!!
-------------------
The last thing i want to say is please do not trade GOOGLE if you do not know how i trade it and you not sure what you are doing. Trading google without knowing how to trade is THE FASTEST WAY TO BREAK YOUR ACCOUNT!!!! ;)

I love Google

2007-07-31T01:08:00.000+08:00

I have been away for the pass 5 days to help out in an event call wealth academy. This is an event teach people personal financial and creating multiple stream of income thorough investing, writing books, selling ideas and many more... It was a fruitful event for me as i learn alot through coaching people and get to meet other interesting people.

So today i back to post my trade. As you guys know i love to trade google as is a no brainer things for me to trade. My strategy has been proven time and time again.

Here is my winning trade for Google

BOT GOOG 500 1 CALL 19.70
SLD GOOG 500 1 CALL 23.60

Net Profit: $388

BOT GOOG 520 1 PUT 16.40
SLD GOOG 520 1 PUT 13.10

Net Loss: -$332

Total Net Profit: $56

This is a no fear game ... Less risk greater gain. Powerfu stuff !! i rather gain 50 dollars everyday without any fear and almost have 90% of winning chance =)

My Daily Trade on Google and GS

2007-07-25T02:46:00.001+08:00

GS Aug2007 220P Net profit $333 (4 puts)
GOOG Aug2007 500C Net profit $245.75
GOOG Aug2007 520P Net profit $213

Total Net profit $791.75 ;D

Well nothing to say actually cos i just stick to my plan. GS i just buy put and put and put and put ... Goog i buy call and put. Wao i found out something that really open my eyes big big...

Just now i buy a 500C and a 520P when goog is at around 500 buck. When the Google stock move up my Call earn more than the lost of my put ... so when Goog hit 518 ... my call become deep deep in the money and my put become out of the money. Wao then i realise this is the safest way to trade Google ... and also realise the power of delta and the stuff about options ... lol

And also according to my research Google will just make a small U turn at least 1 time and also It like to go against the market. ;D Weird stock but i love it ...

My consistent winning Trade on Google (Thur/Fri)

2007-07-21T05:20:00.001+08:00

Thurday (Bullish day)

BTO GOOG July 540 4 Call - ($19.4 , $19.1, $18.5, $16.5)
STC GOOG July 540 4 Call - $18.80 (4hours) (opening window period)

Nett Profit: $163

Got Cheated by ox chart at first, then the price suddenly drop... panick abit but when the chart back to normal, i study the chart again and brought the last call at 16.5 which really make back everything . Job done for today ... happy trading

Friday (Bearish day)

BTO GOOG Aug 510 1 Call - $25.6
STC GOOG Aug 510 1 Call - $26.6 ( 92sec ) (opening period)

Nett Profit: $98 ($2 commision)

Faster scalp =)

BTO GOOG Aug 520 1 Put - $12.7
STC GOOG Aug 520 1 Put - $13.1 (20mins) (2nd window)

Net Profit: $38 ($2 commision)

Total Profit: $136

Everybody buy a put today sure win for most of the stock but ... for google you must buy a call and you will win a jackpot!!! I started to love google for being such a unique stock.

If you guys follow closerly to my day trade and scalping on Google, you guys will already notice that google like/love to go the oppsite direction of the Market trend of the day. I can make money from a put and call from whichever direction the Google run.

To trade any stock, you need to study the stock closely. Once you know the stock inside out, it become a 2nd nature of taking profit naturally. Study Hard and Make Your Own Strategy

My Scalp on Google (Tues/Wed)

2007-07-19T00:47:00.000+08:00

Tuesday

BTO GOOG July 540 Call - $20.20
STC GOOG July 540 Call - $20.40 (7mins)

Nett Profit: $18

BTO GOOG July 550 1 Put - $10.60
STC GOOG July 550 1 Put - $10.80 (9mins)

Nett Profit: $18

Waiting for it to stable first then see if i have any entry. i will be back again ... =)

BTO GOOG July 550 3 Put - ( $11 , $10.3 , $9.4 )
STC GOOG July 550 3 Put - $10.80 (2 hours)

Nett Profit: $164.75

Total Net Profit: $200.75 ($10.75 commision)

It feel so good that my strategy work according to my plan. Stick to it without fear. 2 months plus of effort spend analyzing goog finally paid off.

Wednesday

BTO GOOG July 550 1 Put - $15.40
STC GOOG July 550 1 Put - $16.00 (10mins)

Nett Profit: $58 ($2 commision)

yeah im fine with 60 buck hehe as i just come back home.

Most of the trades i do it at the opening bell which is the first window period for scalper like me to be active. 12.30 to 1.30 is for another window period to place a day trade. The second window is the closing window which is from 2 - 4 . As a singaporean i usually dont stay up till 4am in the morning so i traded most of the time at the opening window.

So you need to know what kind of trade is good for which period of the day. It will either make or break you . Good luck guys with your trading styles. =)

My Consistent Scalp on Google ( Friday / Monday )

2007-07-17T09:27:00.000+08:00

Last Friday

BTO GOOG July 540 Call - $19.10
STC GOOG July 540 Call - $18.70

Nett lost: $40

BTO GOOG July 550 2 Put - $11.70
STC GOOG July 550 2 Put - $12.10

Nett Profit: $80

BTO FLR Aug 110 Call - $11.90
STC FLR Aug 110 Call - $12.30

Nett Profit: $40

Total Net Profit: $72.50 ($7.5 commision)

Yeah!! My strategy on Google work well. If i stick to my rule i will be able to make my CALL too which will give me another 90 bucks. Well it okay i learn something new on Google. Im getting better and better with Google. The Contrarian will love Google as it like to go oppsite of the Nasdaq. Weird !!

Yesterday (Monday)

BTO GOOG July 540 Call - $20.30
STC GOOG July 540 Call - $20.80 (3mins)

Nett Profit: $50

BTO GOOG July 550 2 Put - $11.20
STC GOOG July 550 2 Put - $11.50 (intraday)

Nett Profit: $60

Total Net Profit: $106 ($4 commision)

Yeah!! My strategy on Google work again. This time i stick to my rule. i almost freak out when google chiong up till 559 lol , lucky i automate my trade. My strategy still have to tweak abit to maximise the gain as my current strategy only limit to a small range of goog spike. As expected Goog like to spike up and down so when it spike up . i just buy another put to avg down my opening put and set my target profit and i go to sleep . Hehe..

My call is a 3mins scalp then the put is a intraday trade.

How to Counter Your Fear In Trading

2007-07-13T19:31:00.000+08:00

The author - Lawrence

The FEAR that i encounter during the trade
- I fear that my winning trade will become a losing trade
- I fear that my losing trade will not be able to become winning trade

During Off-trading
- I fear that the market will turn against me
- I fear that i wont be able to make it back home on the opening of market.

The Measure that I take to COUNTER the FEAR
- Stick to my plan and stategy
- Have my Target profit and Stop lost
- Practice and practice
- Look at the indicators
- Automate it

Conrad

I fear my own Powers of Attraction!

So I am not going to read this post again before I start trading!

Seriously, my deepest but not the only fear is that my pride could be ruling my head without me realizing it until its too late. Its not easy being a coach and admitting you've made a mistake. So pride tends to rule in situations like those.

My solution is simple:
Cut Loss. Even if its too late, just cut loss. And then tell everyone that you were an idiot.

Jack

My fear is having too many winning trades in a row, making me think that I am in the fantasy land.

My fear is that I am able to guess where the market goes correctly.

My fear is that I am able to say to myself I am never wrong.

So, the catch is to stick to my own trading systems, and automate the trades. This is what Tom Gentile says:

1. When you are still looking for the trade, the computer is your employee and you are the boss.
2. But when you are in the trade, the roles reverse. The computer is your boss and you have to be the employee to listen to the computer. Let the trade do what it is supposed to do.

Zand

Well my fear is simply Pride !!!
Staying Humble is a challenge, and I work very hard to stay that way.

Jmot

My earlier fears stems from my trading account. My heart sinks when I know that my trading account is going deeper and deeper into the reds. I used to always look at my trading account as a gauge of my trading performance. I realized that my emotions are tied to my trading account to the extent that it has also influenced my trading decisions and judgment.

Something which I consciously try to avoid doing now. I try to focus on the quality of my trades and try to improve them instead of how they will affect my trading account.

Someone out there share the same experience?

Benard

My fears:

1. Holding on to a position and some trashy news or major unexpected world event happens that causes the market to tank, and I do not have the stop loss in place to take money off the table. The market takes all my profits away.

2. Holding on to a losing position and sweating while it continues to either tank or move sideways.

3. Reporting to my son that I stubbornly held on to a losing trade instead of trading my plan, aka, behaving like an idiot!

My learnings to far:

1. Easy to read and talk about cut loss. Emotionally hard to do as we all want to win. Having done some major cut loss, its now easier. I guess practice makes perfect. If a trade/scalp is not going my way, I will cut loss without hesitation. Yes, it may reverse and go my way later after I cut loss. No matter because it could also go the other way! I'm learning to trade my plan. Easy to read about, talk about, very hard to do.

2. I'm working out my stop loss positions to be activated for my value stocks as well in case I don't have time to react to market conditions

3. Trade with the trend. If trend reverses against me, I cut loss. Hard to fight the trend, and harder to keep hoping day after day that tomorrow will be better.

4. After cutting loss on a losing position, I feel better, mind feels at ease, feel calmer and can think better. Easy to talk about, hard to do.

Thoughts

These are a few guys that have share their experience in trading. I hope that You will be benefit from these sharing. To know more about the psychology of trading, you can feel free to visit the trading forums - http://www.patterntrader.proboards106.com/ , or visit my mentor blog conrad - http://www.conradalvinlim.com/

I hope that there will be more people sharing their thoughts and opinons. Thank you very much for visiting my newly born blog. Have a nice day trading =)

My Humble Ride on Google and GS.

2007-07-13T07:16:00.000+08:00

Did you get a ride from the MAD BULL RUN ?

GS July 210 1 Call (12.90 - 13.90) - $98
GS July 210 1 Call (13.30 - 13.60) - $28

GOOG July 550 1 Put (17.70 - 17.10) - (-$62)

GOOG July 540 2 Call (14.00/13.70 - 14.50) - $126

Total Net Profits - $190

I trade on Goldman Sach (GS) and Google (GOOG) daily. I will just ride on the market sentiment. You will not get 100 percent winning trade. The most important is to minimise your loses and maximise your gain. You have to know your stock inside out so that you will know the pattern of the stock.

" Know yourself, Know the enemy,
100 battle, 100 win" by Sun Tze

Do you know that even on a very bullish day, Google will not really react or follow the market as it make a bearish run initially and make a come back during the last hour to make a positive gain of +0.80...

My Consistent Scalp on Google.

2007-07-12T01:05:00.000+08:00

GOOG July 550 1 Put - $58 (6mins)
GOOG July 540 1 Call - $28 (3mins)

Total Profit: $86

IB - Interactive Brokerage
OX - Option Express

Wao IB Rox!! woohoo ... lol ... i feel like im flying without the weight and the stuff that i can do in IB is alot better and efficiency than in OX. Nonetheless OX still provide me a good 6 months training. Those who like to day trade or scalp, I really recommend you guys to paper trade and train yourself using OX paper trading platform.

OX give you the weight of having 30 buck commision and you have to trade it using market order as the virtual platform will filled you slowly if you using a limit order.

So if you can consistently profitable paper trade using OX, Im pretty sure you will make alot more when you trade REAL money on IB platform.

My Consistent Profitable Trade on Google and GS.

2007-07-04T19:58:00.000+08:00

My winning trades ...

07/03/2007 O STC .GOPGV - GOOG JUL 520 Call 1 $19.70 $14.95 $1,955.01
07/03/2007 O STC .GOPGV - GOOG JUL 520 Call 1 $18.60 $14.95 $1,845.02
07/02/2007 O BTO .GOPGV - GOOG JUL 520 Call 1 $19.50 $14.95 ($1,964.95)
06/29/2007 O BTO .GOPGV - GOOG JUL 520 Call 1 $18.00 $14.95 ($1,814.95)
20.13

Total Realized Gain for GOOG $20.13

GS
07/03/2007 O
STC .GPYGB - GS JUL 210 Call 2 $13.40 $14.95 $2,665.00
07/02/2007 O BTO
.GPYGB - GS JUL 210 Call 2 $11.60 $14.95 ($2,334.95) 330.05
Total Realized
Gain for GS $330.05

Total Realized Gain $350.18

Yeah!! im happy with the trade so far and my testing on Goog. . One thing i still fail to exercise is letting my profit run. For example i should just take 1 contract from GS to make a profit and let the other contract run.

I realize that i have the patience to wait for a losing trade but i dun have the freaking patient to wait for winning Trade. One very good example is goog. i knew that goog will go up to 532 but i miss the profit taking due to busy or miss the target ... i still have alot of refining to do . especially the emotion and plan...

Trading really need to HAVE the CORRECT patience ...

i use the word COrrECT cos you need to have PATIENCE to see your profits run ... but you do not need to have PATIENCE to see your trade losing and hoping that it will come back.

Pre holiday market RALLy ... GS and GOOG run wild during the the last 30 mins ...

Hot Tips ...

The day before the US holiday will most likely to be a bullish day.

Why ?

Part of the reason is due to the self fulfilling prophecy and the holiday mood.

Day Trading - Your Dollars at Risk

2007-07-04T19:37:00.001+08:00

Day Trading is very dangerous if you do not know what you are doing because the US market is very volatile. If the market goes aganist your trading, then you will make a lose within a day. It is a HIGH RISK HIGH RETURN GAME.

I chance upon this following article which is from the website of US Securities and Exchange Commision. This article educate or warn the investor or people the danger about day trading.

The Article ...

Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in quick profits. Day traders usually buy on borrowed money, hoping that they will reap higher profits through leverage, but running the risk of higher losses too.

While day trading is neither illegal nor is it unethical, it can be highly risky. Most individual investors do not have the wealth, the time, or the temperament to make money and to sustain the devastating losses that day trading can bring.

Here are some of the facts that every investor should know about day trading:

Be prepared to suffer severe financial losses

Day traders typically suffer severe financial losses in their first months of trading, and many never graduate to profit-making status. Given these outcomes, it's clear: day traders should only risk money they can afford to lose. They should never use money they will need for daily living expenses, retirement, take out a second mortgage, or use their student loan money for day trading.

Day traders do not "invest"

Day traders sit in front of computer screens and look for a stock that is either moving up or down in value. They want to ride the momentum of the stock and get out of the stock before it changes course. They do not know for certain how the stock will move, they are hoping that it will move in one direction, either up or down in value. True day traders do not own any stocks overnight because of the extreme risk that prices will change radically from one day to the next, leading to large losses.

Day trading is an extremely stressful and expensive full-time job

Day traders must watch the market continuously during the day at their computer terminals. It's extremely difficult and demands great concentration to watch dozens of ticker quotes and price fluctuations to spot market trends. Day traders also have high expenses, paying their firms large amounts in commissions, for training, and for computers. Any day trader should know up front how much they need to make to cover expenses and break even.

Day traders depend heavily on borrowing money or buying stocks on margin

Borrowing money to trade in stocks is always a risky business. Day trading strategies demand using the leverage of borrowed money to make profits. This is why many day traders lose all their money and may end up in debt as well. Day traders should understand how margin works, how much time they'll have to meet a margin call, and the potential for getting in over their heads.

Don't believe claims of easy profits

Don't believe advertising claims that promise quick and sure profits from day trading. Before you start trading with a firm, make sure you know how many clients have lost money and how many have made profits. If the firm does not know, or will not tell you, think twice about the risks you take in the face of ignorance.

Watch out for "hot tips" and "expert advice" from newsletters and websites catering to day traders

Some websites have sought to profit from day traders by offering them hot tips and stock picks for a fee. Once again, don't believe any claims that trumpet the easy profits of day trading. Check out these sources thoroughly and ask them if they have been paid to make their recommendations.

Remember that "educational" seminars, classes, and books about day trading may not be objective

Find out whether a seminar speaker, an instructor teaching a class, or an author of a publication about day trading stands to profit if you start day trading.

Check out day trading firms with your state securities regulator

Like all broker-dealers, day trading firms must register with the SEC and the states in which they do business. Confirm registration by calling your state securities regulator and at the same time ask if the firm has a record of problems with regulators or their customers.

Some thoughts...

I agree with most of the points that this article stated except for one. Yes there are day traders who borrow money to trade but not every traders. If you are really interested in day trading, please paper trade first and have a plan to trade it profitable consistently. All the best for all inspiring day trader.

Charateristic - Day Trading

2007-07-02T19:51:00.000+08:00

Characteristics of a Day Trader

This article will focus on professional day traders - that is, those that trade for a living, not simply as a hobby or for a “gambling high”. These traders are typically well-established in the field and have in-depth knowledge of the marketplace. Here are some of the prerequisites to day trading:

Knowledge and Experience in the Marketplace
Individuals who attempt to day trade without an understanding of market fundamentals often end up losing money.

Sufficient Capital
One cannot expect to make money day trading. Day traders use only risk capital, which they can afford to lose. Not only does this protect them from financial ruin, but it also helps eliminate emotion from their trading. A large amount of capital is often necessary to capitalize effectively on intra-day price movements.

A Strategy
A trader needs an edge over the rest of the market. There are several different strategies that day traders utilize, including: swing trading, arbitrage as well as trading news, among others. These strategies are refined until they produce consistent profits and effectively limit losses.

Discipline
A profitable strategy is useless without discipline. Many day traders end up losing a lot of money because they fail to make trades that meet their own criteria. As they say, “Plan the trade and trade the plan.” Success is impossible without discipline.

Day Trading for a Living
There are two primary divisions of professional day traders: those who work alone and/or those who work for a larger institution. Most day traders who trade for a living work for a large institution. The fact is these people have access to things individual traders could only dream of: a direct line to a dealing desk, large amounts of capital and leverage, expensive analytical software and much more. These traders are typically the ones looking for easy profits that can be made from arbitrage opportunities and news events. The resources to which they have access allow them to capitalize on these less risky day trades before individual traders can react. Individual traders often manage other people's money or simply trade with their own. Few of them have access to a dealing desk; however, they often have strong ties to a brokerage (due to the large amounts of commission spending) and access to other resources. However, the limited scope of these resources prevents them from competing directly with institutional day traders; instead, they are forced to take more risks. Individual traders typically day trade using technical analysis and swing trades - combined with some leverage - to generate adequate profits on such small price movements in highly liquid stocks.

Trading
Day trading demands access to some of the most complex financial services and instruments in the marketplace. Day traders require:

Access to the Trading Desk
This is usually reserved for traders working for larger institutions or those who manage large amounts of money. The dealing desk provides these traders with instantaneous order executions, which can become important, especially when sharp price movements occur. For example, when an acquisition is announced, day traders looking at merger arbitrage can get their orders in before the rest of the market, taking advantage of the price differential.

Multiple News Sources
In the move "Wall Street" Gordon Gekko says that 'information is the most important commodity when trading’. News provides the majority of opportunities day traders capitalize on, so it is imperative to be the first to know when something big happens. The typical trading room contains access to the Dow Jones Newswire, televisions showing CNBC and other news agencies, as well as software that constantly analyzes various other news sources for important stories.

Analytical Software
Trading software is an expensive necessity for most day traders. Those who rely on technical indicators or swing trades rely more on software than news. This software typically contains many features, including:

Automatic pattern recognition - This means that the trading program identifies technical indicators like flags, channels and even more complex indicators like Elliott Wave patterns.

Genetic and neural applications - These are programs that utilize neural networks and genetic algorithms to perfect trading systems to make more accurate predictions of future price movements. (see Neural Trading: Biological Keys to Profit.)

Broker integration - Some of these applications even interface directly with the brokerage, which allows for instantaneous and even automatic execution of trades. This is helpful for eliminating emotion from trading and improving execution times.

Back testing - This allows traders to look at how a certain strategy would have performed in the past in order to predict more accurately how it will perform in the future (although past performance is not always indicative of future results).

Combined these tools provide traders with an edge over the rest of the marketplace. It is easy to see why, without them, so many inexperienced traders lose money.

Conclusion

Although day trading has become somewhat of a controversial phenomenon, its prevalence is undeniable. Day traders, both institutional and individual, play an important role in the marketplace by keeping the markets efficient and liquid. Some argue that individuals should stay away from day trading, while others argue that it is a viable means to profit. And although it is becoming increasingly popular among inexperienced traders, it should be left primarily to those with the skills and resources needed to succeed.

by Justin Kuepper

Introduction - Day Trading

2007-07-02T18:59:00.000+08:00

I will be running a series of Day Trading articles this week. Starting from Introduction of Day Trading , then follow by characteristic , your dollars at risk , psychology, and many more ...
Some people may already know why i run this articles. Im a scalper and day trader by nature. If you check out my archive, you will know that i earn most of my money through scalping(meaning earn money within an hour) or day trading(within a day). You guys can also check out the investing forum at the right navigation bar - my link to see more of my daily winning trades.

An Introduction - Day Trading

Day trading is defined as the buying and selling of a security within a single trading day. This can occur in any marketplace but is most common in the foreign-exchange (forex) market and stock market. Typically, day traders are well educated and well funded. They utilize high amounts of leverage and short-term trading strategies to capitalize on small price movements in highly liquid stocks or currencies. Day traders serve two critical functions in the marketplace - they keep the markets running efficiently via arbitrage and they provide much of the markets' liquidity (especially in the stock market).

The Controversy

Search "day trading" on Google and you will see why there is controversy! The profit potential of day trading is perhaps one of the most debated (and misunderstood) topics on Wall Street. Countless internet scams have capitalized on this confusion by promising enormous returns in a short period. Meanwhile, the media continues to promote this type of trading as a get-rich-quick scheme that always works. The truth lies somewhere in the middle. There are those who engage in this type of trading without sufficient knowledge (or some even admittedly for a gambler's high!); however, there are day traders who are able to make a successful living.

Many professional money managers and financial advisors shy away from day trading, arguing that in most cases the reward does not justify the risk. They often cite that no day trader is world renown, whereas icons like Warren Buffett and Peter Lynch (see The Greatest Investors) are a testament to the success that can be attained by more traditional forms of investing. Conversely, those who do day trade insist there is profit to be made. They say the success rate is inherently lower as a result of the higher complexity and necessary risk of day trading, combined with all the related scams.

Overall, the street remains divided on the issue. At the very least they agree that day trading is not for everyone and involves significant risks. Moreover, it demands an in-depth understanding of how the markets work and various strategies for profiting in the short term.

By Justin Kuepper,

My Humble Option Trade on Google

2007-06-30T05:57:00.000+08:00

06/29/2007 O STC .GOPSW - GOOG JUL 530 Put 1 $17.70 $14.95 $1,755.02
06/29/2007 O STC .GOPSW - GOOG JUL 530 Put 1 $15.00 $14.95 $1,485.02
06/29/2007 O BTO .GOPSW - GOOG JUL 530 Put 1 $14.60 $14.95 ($1,474.95)
06/25/2007 O BTO .GOPSW - GOOG JUL 530 Put 1 $16.40 $14.95 ($1,654.95) 110.14

Total Realized Gain for GOOG $110.14

Phew i waited and waited for 3 days and finally i can take my put profits ... i still have a call and 2 puts postion lol ... whichever way it go i also dun care.

Why did i hold for 3 days?

The candlesticks chart telling me that an evening star 3 days ago. Then follow by a Hammer and a doji. So all the infomation tell me to hold my puts position. =)

Technical Analysis (Candlestick Chart)

2007-06-28T20:15:00.000+08:00

What is a Candlestick Chart ?

A candlestick chart is a style of bar-chart used primarily to describe price movements of an equity over time.

It is a combination of a line-chart and a bar-chart, in that each bar represents the range of price movement over a given time interval. It is most often used in technical analysis of equity price patterns. They appear superficially similar to error bars, but are unrelated.

History of Candlestick

Candlestick charts are said to have been developed in the 17th century by legendary Japanese rice trader Munehisa Honma. The charts gave Honma and others an overview of open, high, low, and close market prices over a certain period. This style of charting is very popular due to the level of ease in reading and understanding the graphs. Since the 17th century, there has been a lot of effort to relate chart patterns to the likely future behavior of a market. This method of charting prices proved to be particularly interesting, due to the ability to display four datapoints instead of one. The Japanese rice traders also found that the resulting charts would provide a fairly reliable tool to predict future demand.

Layout of Candlestick

Candlesticks are usually composed of the body (black/red or white), an upper and a lower shadow (wick). The wick illustrates the highest and lowest traded prices of a stock, and the body the opening and closing trades. If the stock went up, the body is white, with the opening price at the bottom of the body and the closing price at the top. If the stock went down, the body is black/red, with the opening price at the top and the closing price at the bottom. A candlestick need not have either a body or a wick.

Some Pattern of Candlestick

There are multiple forms of candlestick chart patterns, with the simplest depicted at right. Here is a quick overview of their names:

1 .White candlestick - signals uptrend movement (those occur in different lengths; the longer the body, the more significant the price change)

2. Black/Red candlestick - signals downtrend movement (those occur in different lengths; the longer the body, the more significant the price change)

3. Long lower shadow - bullish signal (the lower wick must be at least the body's size; the longer the lower wick, the more reliable the signal)

4. Long upper shadow - bearish signal (the upper wick must be at least the body's size; the longer the upper wick, the more reliable the signal)

5. Hammer - a bullish pattern during a downtrend (long lower wick and small or no body); Shaven head - a bullish pattern during a downtrend & a bearish pattern during an uptrend (no upper wick); Hanging man - bearish pattern during an uptrend (long lower wick, small or no body; wick has the multiple length of the body.

6. Inverted hammer - signals bottom reversal, however confirmation must be obtained from next trade (may be either a white or black body); Shaven bottom - signaling bottom reversal, however confirmation must be obtained from next trade (no lower wick); Shooting star - a bearish pattern during an uptrend (small body, long upper wick, small or no lower wick)

7. Spinning top white - neutral pattern, meaningful in combination with other candlestick patterns

8. Spinning top black/red - neutral pattern, meaningful in combination with other candlestick patterns

9. Doji - neutral pattern, meaningful in combination with other candlestick patterns

10. Long legged doji - signals a top reversal

11. Dragonfly doji - signals trend reversal (no upper wick, long lower wick)

12. Gravestone doji - signals trend reversal (no lower wick, long upper wick)

13. Marubozu white - dominant bullish trades, continued bullish trend (no upper, no lower wick)

14. Marubozu black/red - dominant bearish trades, continued bearish trend (no upper, no lower wick)

Personally i use candlestick chart for technical analysis. With a few combination of the candlestick, you will be able to predict up to 90% accurate the way your stock will react. The above 14 pattarns are simple and basic stuff of candlestick. There are plenty of combination of candlestick that will help you to analysis the stock.

Example when a solid white small candle follow by a large soild red/black candle(bearish englufing), the stock will normally go downward or go sideway.

Personally i love candlestick chart as it's not only providing 4 information by itself and when it combine with a few candles, they tell you more information. It is eyesight/user friendly for most of the people as compare to line or bar charts. Hope that the brief introduction on candlestick chart (technical analysis) will open up your world into trading =)

The 5 Day Pre Earnings Game

2007-06-27T19:51:00.000+08:00

What is the 5DPEG?

This is a question that is commonly asked through emails and private messages that I get as frequently as twice to three times a week. So to put aside the task of having to answer this repeatedly, please read on …

CONRAD’S 5 DAY PRE-EARNINGS GAME

Very simply, its a simplification of an age old earnings strategy that I have taken, modified and taught, which is more than just a $50 winning strategy. The one thing that my students have come to realise is how consistent this is if you stick to the guidelines. And that is the key to its popularity … CONSISTENCY.

To trade earnings, one always trades the security right up till the day BEOFRE the announcement of the earnings report. This way, profits are taken off the table before the unpredictable gap that sends the stock either way upon announcement. There is no way to know where the stock will go after its announcement as there are way too many variables involved. Traders that attempt to second guess the gap are gambling on their wager going the right direction. The gains for being correct are usually not as great as the risk they undertake if the gap is against them. This is because of a phenomenon known as the “Volatility Crush”. Still, there will be those who gamble iin the market.

In the 5DPEG, students learn to qualify a stock with 10 simple steps involving a bit of fundamental research and technical analysis. These ten steps introduces the student to the discipline of researching before trading. It breeds a good trading habit that most people ignore … due diligence.

After qualifying the stock, students then plan their trade … another disciplne which is often lost in the heat of the trading battle. The plan is simple: identify your time target, profit target, stop loss and return on investment. If they are using Options, they will learn the dangers of using the wrong option and risk minimization by understanding Options Greeks.

Once the student has a plan, the next discipline kicks in … knowing when and how to make an entry with minimal risk. How many times have you put on a trade, only to see it losing money before the close of the session?

My students use the leverage of market sentiment, events, sector sentiment and general political awareness to avoid making a risky entry. They then apply one of two Minimal Risk Entries that they learnt and wait for their entry patiently. Most of the time, this entry has proven profitable as students are known to profit take on their profit targets the next day.

Those who don’t reach their profit targets then stick to the trading plan till one of three things happens: 1. Profit target is achieved … 2. Time target has arrived … 3. Cut loss at a predetermined level of tolerance.

Actually, there is a 4th … students also learn to identify Japanese Candlestick formations to defend their positions.

These habits are so automated with the 5DPEG that students unwittingly learn the best habits a good trader must have … the ability to overcome fear and the will to resist greed. This way, the student become emotionless and will trade with confidence. They also learn a more valuable lesson …

By cutting your losses early and letting your profits run, the 5DPEG will give you a success return on no less than 80%. So out of 10 trades they will have 8 profitable trades. But if for some unforseen reason, the tables turn and the ratio kicks back a 30% success rate, by cutting their losses at $30, 7 losing trades will mean a loss of $210. Their 3 winning trades will turn around a minimum profit of $150, should they stick to the trading plan. Thus the loss for sticking to the rules in an unlikely 3:7 ratio, is only $60 in 10 trades.

But because they learned to let their profits run and to use stop losses to protect their profits, they are likely to recoup this $60 loss, by letting these 3 winners run for another $20 each to break even or even make some. So what’s the worse that can happen? They don’t lose much.

In my 2 plus years of sharing this simple strategy, I haven’t met anyone who has had a worse return than 60% of winning trades.

Finally, but certainly not the last beautiful thing about the 5DPEG, is that the student will gain experience and confidence without having to stomach major losses to kill their spirit and account. This experience allows the student to stretch the parameters of the 5DPEG and explore more strategies that will improve their trading styles.

Through the 5DPEG, they will have learned to read and understand reports, analysts’ opinions, market sentiments, company balance sheets, everything you need to know about EPS, PE ratios, insider trades, relative strength etc etc etc …. and armed with this knowledge, they will come back with more sophisticated questions that can only help them grow into more savvy investor/traders.

So, its quite evident that I have discovered a simple but truly effective way for novices to trade and learn about trading without the major risks while picking up good trading habits along the way. And that is not all that the 5DPEG has to offer …

Some of my older students are now multiplying their positions to make exponential profits. You go do the math.

Be it a simple (and affordable) $50 strategy with a great learning curve, or a great profitable strategy with minimal risk, the 5DPEG has opened the world of trading to many of my students and the principles of what I teach and what they learn have all come from this humble little game.

Many want to learn it. Many others wished they knew about it sooner. And then there are the few who want to own it. But there is only one true 5DPEG and everyone knows where to find it.

I remain, its humble creator,

Conrad.

Here are some of the student who have benefits from 5DPEG ...

Hi Conrad,

Thanks for the knowledge that you have bestow on me….
I’ve made quit a handsome quantity of money (even tho’ it paper / virtual
trading but I treat it as if it real money)
on the following stock. CROX
(designer, manufacturer and marketer of footwear for men, women and children
under the crocs brand) and NGA ((North American Galvanizing) .

Never
thought making money soooo easy.

Cheers
(name removed for privacy)

Hi! Conrad
I can not believe my eye on the result of 5 DPEG trade.
Just
follow the step one by one.
The result was incredible with $5000 virtual
capital the gain in 3 days is more 20%

Can we learn how to place advance
order to automat the profit take on our next meeting on July 20 !!!

Thanks Great coach

Cheers

(name removed for privacy)

This is an article by conrad's student Kenny Tran ...

Last week, after finishing the 5-day tutorial with Conrad, I started to play the
5DPEG game (designed for novice traders). It’s really simple to earn money with
5DPEG game. Although it isn’t a big sum of money, you can make it consistently
throughout the month. Let’s say you make average US$50 a day by playing the
5DPEG game (part-time). You can earn an extra US$1,000 per month (or S$1,600)
beside your salary. Not bad right?

This is my humble paper profit with
5DPEG game after 4 days.

Though it’s only paper profit, I’m really proud of it for
start because I know I didn’t gamble with the stock but I got it with the
knowledge learnt from Conrad and my effort.

Conrad is my mentor and a professional trader. I learn alot of trading skill and psychology from him. The 5DPEG is one of the manay strategy that he has created. There are still alot of testimony from alot of student that have benefit from the 5DPEG strategy. If you are interested in learning the 5DPEG strategy, just make a comments here or drop me an email akalawoo@gmail.com. Please state your name, country, contact no and email.

How To Make Money in Trading

2007-06-27T03:30:00.000+08:00

I guess alot of people would love to make money. Only crazy people dun like or love money. Any saint people will want to have plenty and tons of money. I know alot of people will think that playing or trading stock is very easy as long as you know how to buy or sell a stock.

Well in actual fact yes, it is very easy to trade stock but to make money out of it, it quite difficult.

Here are some question for those who want to go into trading :

- Do you drive without a license ?
- Do you not bargin for a shirt,pants,dress and etc if you are shopping ?
- Do you work in a specific field without having the degree/knowledge of the field ?
- Do you want to get married without knowing your partner ?

Actually i have tons and tons of question for those who want or interested in trading. The ultimate question is :

- Do You understand the stock that you are trading ?

If dun understand the stock that you are trading, then DO NOT TRADE IT. You will not lose any money if you dun trade the stock. When you trade a stock you lose money immediately through commision and slippage the very least.

If you can spend tons of money + time on education and shopping.
Why cant you just do the same when you trade on stock?

How often when you buy a stock, you start to lose money. When you sell a stock and it start to make money.

I just hope that you will do your due diligence on trading before you start to trade. Do not worry about the missing of opptunities as there are always opptunities out there waiting for you when you know how to trade it properly.

If you know how not to lose money when you trade, that is where you will make moeny

7 Deadly Trading Sins

2007-06-25T19:10:00.000+08:00

I chance upon this article by Ryan Jones yesterday while i was researching on options. I find it quite meaningful and some of the sins i do encounter personally. So i hope that you guys will be benefit from this article.

1.Focusing a majority of time on technical analysis and trying to predict price action.

Do you know how many indicators have been created for trading? Approximately two and the both do essentially the same thing. Funny thing is though, there are a million different names for them. 99% of all indicators that are derived from price action do essentially the same thing. Do you know what that is? Most indicators simply tell you where price action is now compared to where it has been in the past.

There is no indicator out there that is derived from price action that will tell you where the market is going to go. Many traders may say that they agree with this, but how they practically apply indicators, and more importantly, by the vast amount of time they spend looking for and/or creating that "perfect" indicators says differently.
There is a time and place for indicators and technical analysis, but don't waste most of your time trying to get that perfect one. You will be far better off understanding what they are, finding one that you are comfortable with and then spend your time making sure that other areas are being taken care of (i.e. expectations, money management, etc.). Those who system hop looking for that perfect one never spend the time to build a foundation and usually end up losing.

2.Buying short-term, out of the money options.

For a long time, options have been the beginning ground for many, many traders. They were for me. Buy short-term, out of the money options (because they are cheap), and you have the potential of amassing a huge return in a short period of time. Uh huh.
What you have is a fast track to losing money. I could be a little off on this, but there are better odds that you will walk into a casino and come out a winner. The only way you should buy short-term out of the money options is if you have one KILLER market timing strategy; you then could amass a fortune.

Truth is, there are four things that could happen for you to lose buying these types of options, and only one very unlikely event that will produce a profit. Think about it. If you buy an option and the market goes in your favor, but not past the strike price + whatever you paid for the option, AND within the time period of the option, you lose.
If the market stays the same, you lose. If the market moves against you, you lose. If the market moves in your favor but not to the strike price, you lose. You have A LOT going against you. This type of option buying is common with traders, but you should stay far away from it.

3.Asking your broker what type of money management strategy to use.

There is one decision that every single trader makes when they place a trade whether they put any amount of thought to it or not. That decision is trade size. Every time you get into the market, you are making a trade size decision. Do I trade one, two, more, etc. This is the SINGLE most important trading decision that will affect your long-term success (or failure) in trading.
Many traders rely on what they feel is a good trade size, and many traders end up asking their broker, who then tells them "never risk more than 1% - 2% of your account on any given trade". Well, that sounds good and all, but it is the most inefficient money management strategy you can use. If they say "trade one contract for every $10,000 in your account", that is also one of the worst money management strategies you can use.

Most traders spend a majority of their time on technical analysis (where to get in and where to get out), but look where that has gotten most traders. You, you spend some serious time learning and understanding money management strategies. Proper money management can magnify profit potential dramatically AND at the very same time, keep you from blowing your account out when the system or strategy doesn't work out. This is critically important if you want to stay in the game.

4.Over-Trading

I actually have two deadly trading sins that are money management related. Make no mistake about it, after speaking with thousands upon thousands of traders, after going through more than one lesson of my own, overtrading (too much risk in the account) is the NUMBER ONE ACCOUNT KILLER by far.

Even those who understand money management principles can be guilty for several reasons. But the first thing is to understand what would be considered overtrading for your account size, risk levels, goals and trading strategy being implemented. For that, you need to understand first and foremost the consequences of various money management strategies in order to implement the right one. Secondly, you need to understand the realistic expectations of your trading strategy, including worst case scenario. Only then will you know whether the money management strategy is too risky for that particular trading strategy.

5.Under-educating

Does an airline pilot fly a plane after reading a few books on the subject? How about a brain surgeon? Or perhaps a few seminars on top of the books properly prepare them? How about any skilled profession. Yet, the level of trading education that exists at the time of the first trade is dismal at best. Do you know how much education I had before I bought an option? I knew how to buy an option, and that is about it.

If 95% of traders lose, that might be the first hint that this requires some skill before you can expect to be successful, and even then it is not assured. Education is not learning about a strategy, or learning about a system that has 75% winners. It is UNDERSTANDING what is out there, why and what gives it any chance of actually making money in the long run. That goes far beyond learning to buy when the blue line is crossed and sell when the red line is crossed.

To make things worse, the amount of foundational education that is available is scarce. Everyone is pushing the seminars about buying above the blue line and selling below the red and all your dreams will come true. This is part of the reason that I require traders to go through one of my courses on any given specific strategy before they can access the rules or signals. You must build a foundation of understanding before you can expect to successfully trade.

6.Expectations of trading for a living.

Given all of the above, you may or may not have this expectation anymore based on where you are at (if you had it at all). It amazes me how many traders believe they can trade for a living yet knowing that most people don't and most who have tried have failed. I promise you as sure as I am sitting here right now thinking about how I am going to bag me one big rat, if you are guilty of the trading sins above, the probability of you ever trading for a living is next to none.

7.Bringing ego into trading decisions.

Ego blinds people. This is almost always inextricably linked to many of the above. Many traders come into this endeavor knowing that most are not successful, or at least learn it pretty early on; yet that doesn't stop them from doing the EXACT SAME THINGS that others are doing. This cannot be contributed to anything other than ego.

"I'm different", "yeah, others may not have succeeded, but I have a medical degree" or law degree or engineering degree, or you fill in the blank. "I know many aren't successful, but I'm not like them, I will be successful my first year". Uh huh.

Approximately 65,000 traders are going to read this article and perhaps 100 will stop and say, "you know, I can't keep doing what everyone else is doing and expect to succeed?. Most will continue doing what they have been doing and most will never be successful. I've learned this because I have bee in the industry for a long, long time. Ego is a killer and you need to slay it before it slays you.

About the Author

Ryan Jones is considered one of the trading industries "most complete traders". Starting his trading career at the early age of 16, he had traded nearly every major market and strategy by the age of 21. At the age of 26, Ryan signed a book deal with John Wiley making him one of the youngest authors ever in the field of futures trading. His book, The Trading Game, Playing by the Numbers to Make Millions is still considered to be the authority on the subject of trading and money management by many leading traders. Ryan's advanced experience and knowledge across many trading fields such as Technical Analysis, Option Trading, Money Management and the S&P have lead to several trading feats, including turning a $15,000 account into over $107,000 in less than 90-days short-term trading the S&P (real money).

The 6 Most Dangerous Options Trading Errors

2007-06-23T15:18:00.000+08:00

Have you ever lost money trading options before, or has someone told you that options are a losing game? That is probably because the methods being used to trade options were faulty or overly simplified. My mentor Conrad identified the follow 6 reason why the majority of option players fail to make money.

1 Inappropriate selection methods

Selecting the right stock (and the best corresponding option) is the first step in successful option trading. Some option traders will take a situation they just read about in the news as an option play. Others tend to look at longer-term measures like a stock’s valuation as an indication of its short-term potential. This mismatching of time frames is one of the biggest mistakes made by those who trade options. My staff and I sort through the entire universe of stocks with listed options, in order to pinpoint only those situations that look most attractive for sharp movements. The Option Advisor uses a methodology based on not one, but all of the key shortterm factors that drive stock prices — technical, fundamental, and sentiment.

2 Betting against trends

Trends in prices, whether up or down, have a tendency to last longer than people expect. Most traders lose the bulk of their money betting against trends. I’ve specifically developed my indicators to tell me not only the nature of the trend, but also the investing public’s view of the current trend. What I’ve found is that a prevailing disbelief of an existing trend gives a confirmation that the trend will continue, since there’s money on the sidelines that will eventually be convinced to buy into the trend before it ends. Thus, my approach in buying options with the trend allows you to trade on the right side of the market.

3 Inability to take a loss

Sure, everybody loves to hear about gains and profits, as this is what we all seek to achieve. While “loss” has negative emotions attached to it, the key is not to be emotional in trading, but rather to stay objective in all trading decisions. If the market is not validating my analysis, I have specific exit rules that get my subscribers out of option purchases before their expiration, so that big losses are often avoidable and capital can be preserved for future trades that are likely to be more profitable.

4 Lack of discipline

Many option traders fail because even when they do have gains, they let them slip away by not knowing when to get out and take a profit. Often, you should be taking a profit when the position is moving most obviously in your favor. What I’ve been able to teach option traders is that a mechanical system for entry and exit prices must be in place before the trade is initiated. I pre-determine the highest price that should be paid to enter the option, and the subsequent price that, when reached, will automatically force profits to be taken. This allows traders to prevent profits from slipping away, and enforces the discipline necessary in any successful trading approach.

5 Poormoney management

Every smart option trader knows that even with a winning approach, money management is crucial in building an account’s value. The primary consideration is how much to invest in each trade every month. Often, amateur option players come into the business and make some nice gains right off the bat. Then, thinking this is a simple way to riches, they let all their capital (including all their profits) ride on a subsequent trade that wipes them out. Then they vow to never trade options again. The answer here is to first know the rules of the options game: there is great upside on winning trades, while you can also lose all of your investment in a particular option trade. Clearly no matter how good your approach, you will never win 100 percent of the time, and you should not allocate all (or even the majority) of your trading capital to any particular trade. How much do you invest? Each month, I tell Option Advisorsubscribers how much of each portfolio’s cash reserves to devote to the recommendations in a particular newsletter.

6 Consensus thinking

Amateur traders tend to bet with consensus thinking, which is a sure way to lose in option trading over time. Whether it’s an article in a national publication, a hyped new product or a “tip” you’re betting on, Wall Street has a way of already discounting such news before it becomes widely disseminated. By that time, smart traders are looking for opportunities to bet opposite from the conventional wisdom. I’ve learned that you can use options very successfully in contrarian bets. Understand that a contrarian does not always “zig” when other say “zag,” but rather looks for extreme viewpoints that are apt to spotlight the key turning points in stock prices. That’s what defines true contrarians, and that’s a major reason why I’ve been so successful for those who subscribe to the Option Advisor.

By Conrad - (my mentor)

10 Famous Quotes for Trading

2007-06-22T03:22:00.000+08:00

There are some meaningful and aspiring quotes that i have read from books or i heard from my coaches. Today im going to share with you guys. Hope that it will inspire you and you might use the quotes as a daily reminder or as a form of motivation.

"Trading is hardwork, laborious and boring, just like any other jobs. If you are excited about it, you are gambling" by Conrad

"There is no calamity greater than lavish desires. There is no guilt than discontentment. And there is no greater disaster than greed." by Lao Tze

"Its not about being right or wrong, rather, its about how much money you make when you're right and how much you don't lose when you're wrong" by George Soros

"Luck is what you have left over after you give 100 percent" by Langston Coleman

"In the bussiness world, the rearview mirror is always clearer than the windshield." by Warren Buffet

"Experience is a hard teacher because she gives the test first, the lesson afterwards." by Vernon Sanders Law

"Human beings, by changing the inner attitudes of their minds, can change the outer aspects of their lives." by William James

"The only that overcomes hard luck is hard work." by Harry Golden

"A goal without a plan is just a wish." Antonie de Saint-Exupery

"If i can do it, so can you" by Adam Khoo

Thinkorswim (TOS)

2007-06-20T10:53:00.000+08:00

Just a few comments about TOS platform:

1) You can actually stream a few charts at the same time in TOS platform. You can do so either in "TOS charts" or "Prophnet".

2) Commission cost is $1.50 per contract (and not $2 to $3). You just need to know how to get it.

3) The live chat support is excellent because the helpers were all ex-floor traders from the OEX pit at CBOE. Compared to IB which is a pure online discount broker without any techical support, you can make a judgment.

4) Shadowtrader live commentary every night from 9:15am to 11:30am EST and from 1:30pm EST to 4:00pm is free for TOS users. Lots of education materials on how to scalp the market or how to read a particular chart. By far, OX and IB cannot even match that.

By Greeksman

Thanks for the input especially for the commission cost.

Daily Winning Options Trading

2007-06-20T04:04:00.000+08:00

06/19/2007 O STC .GOPGV - GOOG JUL 520 Call 2 $15.00 $14.95 $2,985.00
06/19/2007 O BTO .GOPGV - GOOG JUL 520 Call 2 $14.70 $14.95 ($2,954.95)
06/19/2007 O STC .GOPGV - GOOG JUL 520 Call 2 $15.50 $14.95 $3,085.00
06/19/2007 O BTO .GOPGV - GOOG JUL 520 Call 1 $14.20 $14.95 ($1,434.95)
06/19/2007 O BTO .GOPGV - GOOG JUL 520 Call 1 $16.30 $14.95 ($1,644.95) 35.15
06/19/2007 O STC .GOPSK - GOOG JUL 490 Put 3 $6.80 $14.95 $2,025.01
06/19/2007 O BTO .GOPSK - GOOG JUL 490 Put 3 $7.20 $14.95 ($2,174.95) -149.94
Total Realized Loss for GOOG ($114.79)
GS
06/19/2007 O STC .GPYGD - GS JUL 220 Call 3 $10.70 $14.95 $3,195.00
06/19/2007 O BTO .GPYGD - GS JUL 220 Call 3 $10.20 $14.95 ($3,074.95) $120.05
Total Realized Gain for GS $120.05

Total Realized Gain $5.26

See the commision ... 15Us dollars per trade. Today i donate US$135 to OX ... i think OX love me alot ... lol ... At least now when my trade goes wrong way i know how to make it back ... so not that bad ... and must have patient and calm when trading...

DO NOT FORCE TO TRADE ... Not everyday can make money and also There are Plenty of Opptunity for you to make profits ...

The chart dun bluff you ... the only problem is how you read it and analysis it. A good day overall especially in GS ... and also goog too ... ;D

Go with the waterflow... and you will benefit will the flow ... go against it or predict it ... you will have a miserable death ... well you may get Lucky sometimes ... so happy hunting ...

Psychology of Options Trading

2007-06-19T19:54:00.000+08:00

What are the most important things you need to know about Option Trading?
- Not the strategies
- Not the tools
- Not the money

It is all about the psychology of the trader - emotion, mindset... There are alot of fear and greed in trading which are from the human beings. You will be asking when should i buy or when should i sell. Should i buy more to cover the lost or just cut lost. There will be alot of distration around you. From your family, friends and so call other gurus.

Example : A novice trader will buy and sell because a friend say the stock will be going up or down. The novice trader just trade by NEWS from the friend.

What your mind concieve, your mind can
achieve

The Human brian is the most powerful tool that God has given to us. It can either make you or break you. If you cant control how your brain think and your emotion, dun trade. Just like when you are unsure of where is the stock going... moving up or down... DUN TRADE!!!

5 simple strategy to control your emotion and mind while Trading:
- Have a Strategy/plan
- Stick to the strategy/plan
- Set profits target
- Set stop loss
- Automate the Trade

If you follow the 5 simple strategy, you will be able to control your mind and emotion. You will be having a fun and stress-free time while doing trading. So have fun and trade happily.

Internet Trading Brokers - Thinkorswim

2007-06-18T18:50:00.000+08:00

Yo Guys today is the last topic on Internet trading brokers. I will cover Thinkorswim. Thinkorswim is a rather new internet trading brokers. They founded in 1999 and headquartered in Chicago, is a leading online brokerage company specializing in options.

They support retail and institutional traders through their own trading platforms which are widely recognized as the industry’s best for execution, professional analytics and real-time position management.

They have revolutionized the option industry by teaching and executing complex, non-directional option strategies with single-click functionality that has now become the industry standard. Thinkorswim continues to evolve the financial marketplaces by delivering products that benefit the customer whether you are hedging, speculating or enhancing returns.

Thinkorswim is like a combination of OX and IB. I shall elaborated further now.
Benefits:
- Nice chart like OX but only can stream a chart at a time
- Plenty of educational tools
- User friendly platform (easy to use the trading workstation)
- Rather cheap commision per trade ... 2.50 - 3 bucks

The trading workstation is more or less similar to OX. I would prefer thinkorswim than OX, but i will still use the chart from OX. The platform that i will use is IB because im a scapler and a day trader so i need the lowest commision rate platform. So What Kind of Platform you need ?
dun wait and go check it out yourself =P

Interactivebrokers

2007-06-16T21:19:00.000+08:00

Hey guys I just finish my exam ... phew!! what a relief ... okay as what i have promiss ... i shall continue with the internet trading brokers topic. Today i shall tell you guys about this very cool and sopiscated broker .

IT is none other than IB (Interactive Brokers)

Interactive Brokers conducts its broker/dealer and proprietary trading businesses on over 60 market centers worldwide. In its broker dealer agency business, IB provides direct access ("on line") trade execution and clearing services to institutional and professional traders for a wide variety of electronically traded products including options, futures, stocks, forex, and bonds worldwide. In its proprietary trading business IB engages in market making for its own account in about 6,500 different electronically traded products. Interactive Brokers Group and its affiliates now trade 18.7% of the world’s exchange traded equity options*, and executes approximately 500,000 trades per day.

Benefits of IB :
- One of the cheapest commision rate - approx 1US per Trade
- One of the Fastest streaming online trading plateform
- Able to perform Stop lost, conditional , double last , and all sort of automate commands
- Able to Keep track of all the stock if you do your due diligence

The only problem i find that is IB didnt give any charts or nice charts and also is quite complicated to trade on IB if you are a computer idiots. You will need to have a certain knowledge on computer to find it easy to trade on IB.

Nonetheless IB is still a professional trading plateform that use by many traders around the worlds. Even Conrad and Adam khoo are using it. If you are a day trader or short term trader, I would really recommend you to check IB out as they will really benefit your pockets. DANGER!! --> (able to fake the markets!!)

Internet Trading Brokers - OptionExpress

2007-06-11T20:30:00.000+08:00

Do you know which online trading platform to setup?
Do you know that different online trading platform will suit differnt kind of trader?
Do you have difficulty on setting up an internet trading platform?

Today im going to share with you guys the BENEFITS of 3 trading platforms.

- Optionexpress (https://www.optionsxpress.com.sg/login.asp)
- Thinkorswim (http://www.thinkorswim.com/tos/client/index.jsp)
- Interactive Brokers (http://www.interactivebrokers.com/en/main.php)

Starting from optionexpress

--------------
Optionexpress
--------------
The best thing about optionexpress is they provide excellent tools. Tools like beautiful user friendly streaming charts that will help in your trading. you can choose to view it in candle stick, bar and line chart.

They let you to put up a watchlist and you can run it in streaming too. They also provide a virtual platform to polish up your skill and get familar with the tools. Easy to trade with option strategy like spread, straddle and strangle as spoon feed you with the neccessary key in option.

Well good stuff always come with a PRICE !!
Yesh they have an averagely high commision charges on per trades - US$14.95
So in acutal fact you will need to spend US$30 on just buy and sell the stock/option.

What i like and love most about optionexpress is the chart which has the following qualities:
- User friendly
- Informative
- Nice Candle Stick chart
- Easy setup TA chart - macd/dema/stochastic and many more ...
- Streaming

So i really recomand you guys to go check it out and play around with the chart. I wont recommend you guys to fund the account unless you are monthly/yearly trader aka investor or long term trader. So please do your due diligence before you act on it.

If you have any enquiry, just drop me a mail - akalawoo@gmail.com

2007-06-09T05:25:00.000+08:00

06/08/2007 O STC .GOPFU - GOOG JUN 510 Call 2 $9.00 $14.95 $1,785.02
06/08/2007 O BTO .GOPFU - GOOG JUN 510 Call 2 $7.60 $14.95 ($1,534.95)
06/08/2007 O STC .GOPFU - GOOG JUN 510 Call 2 $9.10 $14.95 $1,805.02
06/08/2007 O BTO .GOPFU - GOOG JUN 510 Call 2 $8.20 $14.95 ($1,654.95) $400.14
Total Realized Gain/Loss for GOOG $400.14

06/08/2007 O STC .GOPFU - GOOG JUN 510 Call 2 $8.00 $14.95 $1,585.02
06/08/2007 O BTO .GOPFU - GOOG JUN 510 Call 2 $8.90 $14.95 ($1,794.95)

lost 210

whaha ... ZzzZzz nvm .... first time cut i happy ... wao really hor if cant chase the bloody thingy just cut it ... GooG dun play play will die

oh cRAp ... got fool by GooG ... ZzzZzz but no regrete la ... i rather make 190 for today than none lol

yeah the main thing is dun make a lost... today im happy to make 200 buck =) quite cool about it... stick to the rule and you will not fall .. ...

What are Option Tradings

2007-06-04T20:04:00.000+08:00

Have you wonder what are options?

Do you know that Options is a tool create to trade stocks especially for those expensive stocks.

Definition: An option contract is an agreement between two parties to buy/sell an asset (stock or futures contract as an example) at a fixed price and fixed date in the future.

It is called an option because the buyer is not obliged to carry out the transaction. If, over the life of the contract, the asset value decreases, the buyer can simply elect not to exercise his/her right to buy/sell the asset.

There are two types of option contracts - Call options and Put options. A Call option gives the buyer the right to buy the underlying asset, while a Put option gives the buyer the right to sell the underlying asset.

American options can be exercised anytime between the date of purchase and the expiration date. European options may only be redeemed at the expiration date. Most exchange-traded stock options are American.

A simple example: lawrence buys a Call option contract from Sarah. The contract states that lawrence will buy 100 Microsoft shares from Sarah on the 5th May for $25. The current share price for Microsoft is $30.

Note: this is an example of a Call option as it gives lawrence the right to buy the underlying asset.

If the share price of Microsoft is trading above $25 on the 5th May, then lawrence will exercise the option and Sarah will have to sell him Microsoft shares for $25. With Microsoft trading anywhere above $25 lawrence can make an instant profit by taking the shares from Sarah at the agreed price of $25 and then selling the shares on the open market for whatever the current share price is and making a profit.

The $25 value, which is stated in the agreement, is referred to as the Exercise (or Strike) Price. This is the price at which the asset will be exchanged.

The date (in this case 5th May) is known as the Expiry (or Maturity) Date. This date is the deadline for the option contract. At this date, the option buyer is to decide if a transaction of the underlying asset is to occur.

Outcomes: Let's imagine that at the expiration date, Microsoft is trading at $30, then lawrence will buy the shares from Sarah at the agreed $25 and then he can sell them back on the open market for $30 and make an instant $5.

Alternatively, if Microsoft is trading at $20, then buying the shares from Sarah at $25 is too expensive as he can buy them on the open market for $20 and save $5. In this situation, lawrence would choose not to exercise his right to buy the shares and let the options contract expire worthless. His only loss would be the amount that he paid to Sarah when he bought the contract, which is called the Option Premium - more on that a little later. Sarah would, however, keep the option premium received from lawrence as her profit.

In the real world of exchange traded options, transactions don't really take place between two people like I've explained above. The process of Novation actually removes the identity of who is on the other side of the trade. You simply Buy or Sell an option contract from the exchange without knowing who is on the other side.

2007-05-30T20:01:00.001+08:00

Hi all ... i havent been trading for this past few weeks due to the heavy project and also work commitment. Nonetheless i have been monitoring the stock market. I have just started to trade again recently. I have just make a system to trade more consistantly and efficiently.

05/29/2007 O STC .GPYFD - GS JUN 220 Call 3 $11.30 $14.95 $3,374.99
05/29/2007 O BTO .GPYFD - GS JUN 220 Call 3 $10.50 $14.95 ($3,164.95) $210.04
Total Realized Gain/Loss for GS $210.04

yesterday trade.. hehe the first test to my new system work ... so i will continue to test it out .. so watch it for the latest news.

2007-03-31T04:25:00.000+08:00

03/30/2007 O STC .GPYDT - GS APR 200 Call 4 $8.10 $14.95 $3,225.00
03/29/2007 O BTO .GPYDT - GS APR 200 Call 4 $9.50 $14.95 ($3,814.95) -589.95
Total Realized Loss for GS ($589.95)

another small and painful lesson learn ... WAO this time is computer Glitch ... or i should say i press wrongly ... geeZ

11065517 .GPYDT GS APR 200 Call 8.4 8.6 STC 4 Limit 10.50 OCO GTC 3/30/2007 12:11:53 PM
11065518 .GPYDT GS APR 200 Call 8.4 8.6 STC 4 Stop 8.50 OCO GTC $8.10 3/30/2007 12:17:14 PM 3/29/2007 4:25:34 PM

i thought by cancel the OCO limit at 10.50 ... it will also cancel the stop 8.50 ... but it didnt ... and it fill me at 8.10 ...

I only notice when im trying to cut lost at 8.80 ... then i realize .. ZZz

It didnt fill me at 10.50 ... ZZzz even the day high is 10.70 ... well this is my mistake too ... >:(

OCO must cancel both trade ... lesson learn 600Buck ... gee

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03/30/2007 O STC .GPYDT - GS APR 200 Call 4 $8.70 $14.95 $3,464.99
03/30/2007 O BTO .GPYDT - GS APR 200 Call 4 $9.10 $14.95 ($3,654.95 )

-$190

emotion blunder + technical Blunder = 800 Bucks Geez

this week trades 4 win 2 loses ... make a profit of 20 bucks gee
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March report

Total Trades: 21
Winning Trades: 14
Losing Trades: 7

This month make a lost of $380 >:(

Lesson learn
- control your emotion when you just make a blunder/lost
- Try not to trade for that day
- Understand OCO and OTO ... and how the cancel work ...
- Cut lost early

Seriously this month i nv did very badly as compare for jan and feb... I learn alot of new stuff in trading ... Learn how to trade in a bearish day and bullish day. overall i lost most of my money in commision ... 30bucks * 21 = $620 ... lol =X

well no excuses ... =) shall come back APRIL

2007-03-30T04:07:00.000+08:00

03/23/2007 O STC .GPYDT - GS APR 200 Call 3 $13.20 $14.95 $3,944.98
03/22/2007 O BTO .GPYDT - GS APR 200 Call 3 $13.20 $14.95 ($3,974.95) -29.97
Total Realized Loss for GS ($29.97)

lost on commission .. press too slowly ... zzz actually can make 30 bucks ... lol ... zzz ... nvm is okay ... no confidence that gs can climb up ... duno where it will go ...

This week summary ... 3 win 1 draw... total profit 530... so overall is a good week ... OX commission sucks 30 bucks per trade ... but OX have nice reasearch tool hehe ...

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03/26/2007 O STC .RUPDF - RIMM APR 130 Call 3 $11.80 $14.95 $3,524.99
03/23/2007 O BTO .RUPDF - RIMM APR 130 Call 3 $10.70 $14.95 ($3,224.95) $300.04
Total Realized Gain for RIMM $300.04

yeah it feel so good to start the week with winning trade ... close my this trade as i see hang man + from the study dunno where it will go ... housing bad news just now really make me sit up and look at my chart just nw ... i stick to my chart and study so i make some ... con is coming back ... haha GS back again ... hehe cya

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03/28/2007 O STC .GPYPD - GS APR 220 Put 3 $12.00 $14.95 $3,584.99
03/27/2007 O BTO .GPYPD - GS APR 220 Put 3 $10.90 $14.95 ($3,284.95) 300.04
Total Realized Gain for GS $300.04

03/28/2007 O STC .RFYPI - RIMM APR 145 Put 4 $9.40 $14.95 $3,744.99
03/28/2007 O BTO .RFYPI - RIMM APR 145 Put 4 $9.20 $14.95 ($3,694.95) 50.04
Total Realized Gain for RIMM $50.04 30mins

03/28/2007 O STC .GPYPB - GS APR 210 Put 6 $6.40 $14.95 $3,824.99
03/28/2007 O BTO .GPYPB - GS APR 210 Put 6 $6.10 $14.95 ($3,674.95) 150.04 30 mins

hehe another automated profit take for my gs on put ... cos i have to work .. yawn if not can make more hehe ...
oooh 30min scalp hehe 50 bucks ... not bad argh ... should wait a few more mins ... then can make more ... but dun feel like waiting hehe
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Abit wasted on rimm put ... if i hold on abit more i can earn 400++ .. argh!!! ... but nvm ... i saw another opportunity on GS hehe ... then another 30 mins scalp ... woot 150 buck not bad

hehe shall go slp slp now

this week trades 4 win 0 lose

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er sorry today trade still not yet close ... still the same price when i buy on gs option call ... 9.50 ... just wanna say today gs is sosososo hard to trade ... 3 times i thought it can reach my target ..but it cant ... yawn ... the first time i should just take 50 buck profit ... and trade on other stock ... stupid sia .... total 3 time i can take a profit of 50 bucks ... yawn ...

BEWARE OF WEAK HEART

furthermore today the direction abit crazy ... up and down like rollarcoaster ... In the end it just manage to close on mod gain.
Seriously i have no confident on GS ... that why im eager to close it ...

Well at least im nt losing hehe have FUN tmr

2007-03-22T23:55:00.001+08:00

03/22/2007 O STC .GPYPD - GS APR 220 Put 3 $11.50 $14.95 $3,434.99
03/21/2007 O BTO .GPYPD - GS APR 220 Put 3 $11.00 $14.95 ($3,314.95) 120.04

Total Realized Gain for GS $120.04

yeah this trade is a nice victory ... my first put winning trade and also my first automated trade ... cool sia ... have to make you of the automated thingy... so while im working ... the computer help me sell at the price i want and also help me cut lost ... cool ... im going to make another wave again .... not to crush my account ... ;D

2007-03-22T02:43:00.000+08:00

Date Range 3/14/2007 - 3/21/2007

03/15/2007 O STC .BSCDH - BSC APR 140 Call 4 $10.20 $14.95 $4,064.92
03/13/2007 O BTO .BSCDH - BSC APR 140 Call 1 $9.10 $14.95 ($924.95)
03/13/2007 O BTO .BSCDH - BSC APR 140 Call 3 $10.10 $14.95 ($3,044.95) 95.02
Total Realized Gain for BSC $95.02

GS
03/16/2007 O STC .GPYDR - GS APR 190 Call 2 $12.60 $14.95 $2,504.97
03/15/2007 O BTO .GPYDR - GS APR 190 Call 2 $14.50 $14.95 ($2,914.95) -409.98

03/20/2007 O STC .GPYDT - GS APR 200 Call 2 $8.40 $14.95 $1,665.02
03/19/2007 O BTO .GPYDT - GS APR 200 Call 2 $8.00 $14.95 ($1,614.95) 50.07
Total Realized Loss for GS ($359.91)

Total Realized Loss ($264.89)

haha hi im back again ... last week is my losing week ... as you can see that i make a lost from 15 - 16 for my GS 400+ ... i make 100 from bsc but actually i can make over 800+ and i nv take cos due to greed ... zzz ...

This week still on a winning ... after the 2k+ lost last week ... i rebound on a 2 win 1 lose trade ... and i still make a lost ...

WHY ? cos as you can see I DID NOT CUT LOST ... argh ... so now i MUST set a target to cut lost ... =) I WILL DO IT ...

;D it wont be 10 win 1 lost ... and overall in losing position =)
all the best to all you guys ... and well done for those who making money =) keep learning guys ;D

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03/21/2007 O STC .BSCDH - BSC APR 140 Call 2 $12.10 $14.95 $2,405.01
03/19/2007 O BTO .BSCDH - BSC APR 140 Call 2 $10.00 $14.95 ($2,014.95) 390.06
Total Realized Gain for BSC $390.06

yo hehe .. yeah make a profit of 400 buck from 2 contract ... not bad right ... well that make my trade to 3 win 1 lost ... after the 2k+ lost ... and i win abt 100+ ... which not bad ... at least make ...
if you trade 10 times - 8 times win , 2 times lost ... and you make a lost then you have to take a close look at yourself ... like what i did ... SO CUT LOST !!! ... i will be back again ...
This week is still a winning week havent lost yet ... oh btw for me once my week is a winning week , i will hardly go wrong ... but ... if i make a blunder like lost 1k + then my whole week will crush ... what about you ?? think about it ... Is all in your mind

2007-03-14T00:42:00.000+08:00

03/13/2007 O STC .BSCDH - BSC APR 140 Call 2 $9.80 $14.95 $1,944.98
03/13/2007 O BTO .BSCDH - BSC APR 140 Call 2 $12.60 $14.95 ($2,534.95) -589.97
Total Realized Gain/Loss for BSC ($589.97)

03/13/2007 O STC .GPYDT - GS APR 200 Call 2 $9.50 $14.95 $1,884.99
03/13/2007 O BTO .GPYDT - GS APR 200 Call 2 $11.40 $14.95 ($2,294.95) 409.96

03/13/2007 O STC .GPYPT - GS APR 200 Put 5 $4.40 $14.95 $2,184.98
03/12/2007 O BTO .GPYPT - GS APR 200 Put 5 $6.60 $14.95 ($3,314.95) ($1,129.97)
Total Realized Gain/Loss for GS ($1,539.93)

Total Realized Gain/Loss ($2,129.90)

Sob Sob :'( geez ... First mistake is i buy a put on closing yesterday ... 2nd mistake is never wait for the bear to be bearish ... since i know is a bearish day so i should wait ... ARGH!!! :o ... then once your mind cant think well ... zzz i go buy a call for gs when i knw the price is quite high ... yawn ....

Yesterday i close my gs 200 april call cos dun wanna play earning ... and yet i nv close my put ... zzz cos im losing 200 ... wao should cut cut liao ... yawn ...

The most important lesson i learn is to cut lost ... i always lost big ... should cut it when it small amt... dun wait till it rock bot... ya is a huge pyschology ... ya is very hard to but a put - human tend to be bullish ... zzz have to keep on training and learning ...

nvm ... will come back stronger again ... all the best to all trader out there ... back to mugging =)

2007-03-13T02:25:00.000+08:00

03/12/2007 O STC .BSCDH - BSC APR 140 Call 3 $13.40 $14.95 $4,004.92
03/12/2007 O BTO .BSCDH - BSC APR 140 Call 3 $12.80 $14.95 ($3,854.95) 149.97
Total Realized Gain/Loss for BSC $149.97

yo begin my week in a winning note ;D ... decide to take profit first ... as dun wanna wait till bsc hit my resistant line ... im already reach my target ... stick to my rule ... hehe ... ;)

if it still go up ... it will be good too ... gaga =)

geez it really go up ... and break my resistant ... if i slow for a sec ... i may double my winning ... well no regretes ;D

2007-03-11T20:10:00.000+08:00

Today i read the newspaper ... guess what ... the headline is a guy lost 700k in a months ... he lost alot of money when the market meltdown... He lost alot as he was hype by the easy money that he make earlier on ... 80k ... then he convince his dad life saving of 300k to let him invest ... and poor thing him ... lost 700k + his long time girl friend of 8 yrs .... he did paper trade for a few days ...
Lesson learn ....

- Even in Virtual trade/paper trading ... set your account that suit you ... Dun set it 100k when you cant afford to fund it or even stomach so much money - Formulate your rules and hone your skills

- stick to your winning rules and keep on study and learn new skill ...

- Cut loses and never ever invest on credit ... as your fear will dictate your way cos you cant afford to lose the money

- Learn how to win in a bearish and bullish market ... then trading will be so fun and enjoyable ...
Hope all of you have a happy trading experience ...
feel sorry for that poor guy ...

2007-03-10T05:07:00.000+08:00

03/09/2007 O STC .GPYDR - GS APR 190 Call 2 $15.60 $14.95 $3,104.95
03/09/2007 O BTO .GPYDR - GS APR 190 Call 2 $14.90 $14.95 ($2,994.95) 110.00 Total Realized Gain/Loss for GS $110.00

hello hey i come post again ... i love GS ... very predictable cool ... but today waited for quite a while to reach my target ... almost fall aslp ... zzz make quite a decent profit =) and ya still have option on GS too ... hehe so that why i say i love GS ... oh ya BSC also cool cos about the same as GS ... ;D

oh ya just to wrap up for this week ... a good week for me ... make 20% of my account (5k) ... though my target is just 10% ... still learning from conman ( my jadi )... stealing his skill ... whahaha ...

oh ya i also do some research on wence stock ... rimm seem nice ... just need to monitor more ... anyway my account small small ... cant play with much stock also ... thus i rather concentrate on my fav and predictable GS ;)

see ya guys next week ... have a nice weekend ...

2007-03-09T02:34:00.000+08:00

GS
03/08/2007 O STC .GPYDR - GS APR 190 Call 2 $15.80 $14.95 $3,144.95
03/07/2007 O BTO .GPYDR - GS APR 190 Call 2 $12.90 $14.95 ($2,594.95) 550.00
Total Realized Gain/Loss for GS $550.00

Hi ... yesterday never post cos i never win or lose ... i dun just post winning trades ... i do and will post my losing trades too ... today i just take profit again ... and from the dates you will know that i traded yesterday ... and i sell it now ... to take profit ... =) another good days ... this week still on a winning streak ... i will wrap up on the week after tmr trading day...

Stick to your own winning rules and you wont fail ...
Cut loses or dun lose at all ... and your win will come naturally ... dun let greed take over you ... Always look at your chart carefully and believe it once you plan it...
All the best for all those ppl who are trading and also read from my blog ....

If you have any question on options ... you can either drop me a tag.. or comments ... =)

Bullish US Market

2007-03-07T03:12:00.000+08:00

03/06/2007 O STC .GPYDT - GS APR 200 Call 4 $7.70 $14.95 $3,064.95
03/05/2007 O BTO .GPYDT - GS APR 200 Call 2 $5.80 $14.95 ($1,174.95)
03/05/2007 O BTO .GPYDT - GS APR 200 Call 2 $6.20 $14.95 ($1,254.95) $635.05
Total Realized Gain/Loss for GS $635.05

Hello everybody ... today is a good day especially when you are a buyer ... market is very bullish today as compare to the previous few days ... i brought my options yesterday as i expect that the market will go up ... through some technical analysis that i have make ... 2 days consecutive winning ... hope to keep on winning

- Lesson learn is wait for the stock price to settle down ... and if it never close the gap ... normally it will go up

- Need to be calm and wait for the stock to gain momentum and again see you chart ... decide for yourself if you have to sell it ...

2007-03-06T05:15:00.000+08:00

BSC
03/05/2007 O STC .BSCDH - BSC APR 140 Call 2 $12.50 $14.95 $2,484.97
03/02/2007 O BTO .BSCDH - BSC APR 140 Call 2 $12.00 $14.95 ($2,414.95) 70.02
Total Realized Gain/Loss for BSC $70.02

GS
03/05/2007 O STC .GPYDT - GS APR 200 Call 1 $7.50 $14.95 $735.02
03/05/2007 O BTO .GPYDT - GS APR 200 Call 1 $7.00 $14.95 ($714.95) $20.07
Total Realized Gain/Loss for GS $20.07
Total Realized Gain/Loss $90.09

Today i make a profit of 90 buck after taking off 60 commision dollars even when the market is bearish...

2007-03-06T04:20:00.000+08:00

I start this blog for a few purpose:

- To share my trading experience / lessons that i have learn
- To show my trading profits/loses
- To make a few comments here and there ...