I took the short option position and then watched the market move lower putting my "puts" in the money. I had a short stop loss placed but was expecting about a $0.25 move in the option. It got to $0.20 and then the market took off. My stop-limit order was not filled as the market moved through the position after it was triggered. Then we witnessed the market close at record highs for the following two days.
I have had some serious reservations about the RSI method as it takes a "counter" approach to the market and might be more useful for using equities with a large position size, tight stop-loss and small profit targets. I'm not that trader and therefore I'm looking for a new method that properly captures the trend and stays with that trend instead of trying to fight the heavy wave.
I have had some serious reservations about the RSI method as it takes a "counter" approach to the market and might be more useful for using equities with a large position size, tight stop-loss and small profit targets. I'm not that trader and therefore I'm looking for a new method that properly captures the trend and stays with that trend instead of trying to fight the heavy wave.
I've been playing poker this past year with a group of friends and have been doing pretty well. I've often read how traders use their skills for playing poker and I've realized that I've taken my risk management knowledge from trading to poker but I have totally failed to correctly impliment these skills in my trading. Basically during a game of poker I'm not betting large until I know I have a hand that has a significant chance of winning. I've had a pair of Aces (Texas No-limit Holdem) and the flop gave me nothing and I folded. Why not do the same with Trading. Look for the setup that gives you a great chance of collecting money and then go for it, otherwise just "fold." Developing......
