I bought TVIX in the high $17’s
More on this later as well as fun with options.
Update: I won’t lie. I took a stab in the dark here.
Currencies and bonds, which I use as indicators, are a mess.
If it feels like I am being arrogant when I don’t post what I am thinking, its not intentional.
I am busy getting drunk buying stocks during market hours and you wouldn’t expect Michelangelo to teach you how to be an artist. Some of this is just instinct.
The way I see it, if we continue to trade in this range (SPX 1370-1270), at current levels, there is more room for downside than upside.
I will use July 22nds close as my stop with July 7ths as a last resort.
Regarding options: I know enough about options to know that I don’t know enough about options.
Its been in the back of my mind lately that trading every day is unnecessary.
(I should be clear and say that watching the market everyday is what made me good, but now I want to move on to bigger and better things)
If I could just nail some out of the money index options at intermediate inflection points, I could retire and sit on a beach sipping colourful drinks with umbrellas inside of them. (at 26 years old)
Options are tricky because if you take the same underlying and the same day and put it into a parallel universe, the price of those options can be different.
Unless there is a clear edge in trading the volatility of a certain stock (another topic), I usually stick with index options as they are more reliable.
So today I opened a bunch of paper option trades.
I bought puts and sold calls for the Sept 11 expiration (I was going to go out to Sept 30 due to bad luck but I don’t intend on holding these until expiration anyway)
I used tradeMonster’s free trading platform that I signed up for via CBOE.
It has a bunch of cool tools, it looks clean and classy as well. Btw its web based so there is no download.
The goal is to do this until I know how different strikes react in different conditions, like the back of my hand.
Fuck what you read in textbooks and say what you want about paper trading, nothing beats real world experience.
I will never forget the first time I tried to buy an option at market price and found myself down over 20% as soon as it got filled.
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You are mentally ill.
What did I say?
Maybe so but I am also TBTITW (The Best Trader In The World)
I am sincerely trying to improve my blogging and people skills
I think Guido was referring to this:
The Dunning–Kruger effect is a cognitive bias in which unskilled people make poor decisions and reach erroneous conclusions, but their incompetence denies them the metacognitive ability to recognize their mistakes.[1] The unskilled therefore suffer from illusory superiority, rating their ability as above average, much higher than it actually is, while the highly skilled underrate their own abilities, suffering from illusory inferiority. Actual competence may weaken self-confidence, as competent individuals may falsely assume that others have an equivalent understanding. As Kruger and Dunning conclude, “the miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others” (p. 1127).[2]
you speak the sooth.. as my dad used to tell me in his own convoluted overly simplistic way
“Studipidy is a disease of ignorance’..
A tautology of sorts.. but I guess that’s the point of such prescient advice.
My returns have no bias. Therefore you are wrong.
I am the best. Its really that simple.
Get it playa. Improving people skills when among the many unwashed challenges the greatest.
Thanks bro. The unwashed had me feeling down for a minute but I’ll be alright.
kudos, a couple of calls at the money on bidu friday, sell before the close today,and would be taking the rest of they year off. good post……….and fuck the unwashed.
Indeed. Trading every day is for the birds.
I’m just so damn good at it.
HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!!!!!!
Companies like Barclays and Credit Suisse hire the best traders in the world and pay them millions of dollars. So what are you doing here? Why don’t you go tell them you are the best trader in the world?
Tell me I am your favourite blogger then I will answer your questions.
LOL!
I will tell you that you make me laugh. Perhaps this has always been your intention…and I thought you just had poor people skills. And I will admit that I keep coming back just to see what you are going to say next. You are a good trader, but this part does not make you as unique as you think. You say a lot of outrageous things and this is what keeps your readers coming back. It is an old marketing tactic that happens to work. You gotta have a gimmick. (sic)
But alas, thehusband is my favorite blogger for I am in love with him and he is my favorite everything. Sorry go2 – it’s just that I am already spoken for.
For the record, it was a joke.
HA – well isn’t that the point?
You are either a douche or a turd sandwich, can’t decide.
This is becoming an entertaining diversion.
I bought GLW in the mid 17.20’s ahead of earnings
Watch how I do both technical and fundamental analysis
Some would call that an earnings gamble. It is neither technical nor fundamental analysis.
Check my previous “fundamental” post regarding GLW
Wish me luck.
I do say, is that octopus smoking a pipe?
Sure is.
Holey Shiite, It’s Greg Solomon. LOL
Well said @yogi..an entertaining diversion indeed.