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Where can I learn more about Price Action like those in James16 charts? 9 replies

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james16 Chart Thread

  • #133,041
  • Nov 19, 2014 9:36am Nov 19, 2014 9:36am
Quoting turnip15
{quote} Perhaps the pin is a false break down and the next move is up ?
^^
Hero calls followed by margin calls...
  • #133,042
  • Nov 19, 2014 11:08am Nov 19, 2014 11:08am
Quoting PhAnTi'
{quote} ^^
If the price breaks the trend line there may be some move to the upside.
  • #133,043
  • Nov 19, 2014 12:08pm Nov 19, 2014 12:08pm
There was a nice bearish engulfing on the hourly(1.59250) on GBPUSD> I was not watching the charts so I missed it. There is another one forming but the location is not great....
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  • #133,044
  • Nov 19, 2014 12:39pm Nov 19, 2014 12:39pm
Did anybody take this trade....the trade is stuck at FTA but if it breaks that there may be a few pips here.
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  • #133,045
  • Nov 19, 2014 1:34pm Nov 19, 2014 1:34pm
Quoting JoeNY
I've done my fair share of Equity option trading. Of the 4 brokers I have option accounts with, all automatically close any "in the money" options a few minutes before expiration if account is insufficient and give you the cash. If you wanted to buy the stock, you have to call them in advance and notify them of your decision provided your account has the capital for it. Call your Broker in advance for their policy. IMO, option trading because of time decay is a sham for those with little capital. You may have a chance if you know how to use more...

Joe

Thanks for the feedback. I spoke with two brokers for options trading one is TradeKing and another OptionsXpress. OptionsXpress charges $30/- for placing each trade and that is expensive compared to TradeKing which is 5 dollars per trade. When I asked the reason for this diff in broker fee tradeking says risk is less with Optionxpress because we dont need to buy underlying stock if that kind of situation arises. However it is good to know the policies of the broker before we trade.

Now coming to trading strategies I am applying the same strategies I use for Fx trading to Options trading. I have a friend who is into options trading and he helps me out with the trade selection sometimes. Thanks for your suggestions and I will visit the Fools thread and see if I can get something.
  • #133,046
  • Nov 19, 2014 4:25pm Nov 19, 2014 4:25pm
Quoting prasad99
Did anybody take this trade....the trade is stuck at FTA but if it breaks that there may be a few pips here. {image}
Didn't take it but that is a small pin bar heading into a strong flip zone after a very strong bearish move. Personally I would close. Nice trade though good luck.
  • #133,047
  • Nov 19, 2014 5:17pm Nov 19, 2014 5:17pm
Quoting prasad99
{quote} Joe Thanks for the feedback. I spoke with two brokers for options trading one is TradeKing and another OptionsXpress. OptionsXpress charges $30/- for placing each trade and that is expensive compared to TradeKing which is 5 dollars per trade. When I asked the reason for this diff in broker fee tradeking says risk is less with Optionxpress because we dont need to buy underlying stock if that kind of situation arises. However it is good to know the policies of the broker before we trade. Now coming to trading strategies...
Don't listen to a broker's excuse as to why one charges more than the other to buy/sell the exact same product. It's about profit for the broker & NOT about having less risk @ one broker. I'll say again, you will never be required to buy the underlying stock if you're only buying options. If you pay $200 for an option, the most you can lose is $200 & will never be required to have any more money even if the underlying goes to zero. The only way you could be required to buy the underlying is if you sell options. I've been holding options in my account every day for the past 15-20 years & I've never had to buy the underlying.

If you can afford to fund a $10K account, Interactive Brokers charges anywhere from $.40 to $1.10 per trade for options. I was with Tradeking for a while & they're OK too with commissions lower than many. OptionsExpress has better research tools but not worth the higher commissions if you trade often.
  • #133,048
  • Edited 6:03pm Nov 19, 2014 5:41pm | Edited 6:03pm
Quoting JoeNY
I've done my fair share of Equity option trading. Of the 4 brokers I have option accounts with, all automatically close any "in the money" options a few minutes before expiration if account is insufficient and give you the cash. If you wanted to buy the stock, you have to call them in advance and notify them of your decision provided your account has the capital for it. Call your Broker in advance for their policy. IMO, option trading because of time decay is a sham for those with little capital. You may have a chance...
Hi Joe,

I would have to say one of the main benefits of options trading is that it requires so much less capital than to trade the underlying stock so I think someone with limited capital is much better off to trade options than stocks. I can get so much more exposure with options than with the stock. The time decay is definitely something to pay attention to but not too difficult to cover that cost. I could take almost any stock portfolio & cut the dollar amount required by 75% and still have the same exposure to the upside & dramatically reduce the downside risk. The reason money managers don't suggest this is because they get paid for AUM.

Example:
XYZ stock trading @ $50
Buy 100 shares of stock = $5,000 investment
Buy 1 $45 call(equivalent to 100 shares)=$500 investment

Stock goes to $60:
Stock investment profit =$1,000 (20% return)
Option investment profit =$1,000 (200% return)

Stock goes to $30:
Stock investment loss = $2,000 (40% loss)
Option investment loss =$500 (100% loss)
***Better to have 100% loss than 40% loss when looking @ dollar amount.
***I didn't allow for premium (time decay) but going far enough in-the-money removes most of the premium.

GE (General Electric)
Current Stock Price = $26.92
Jan. 25 Call = $1.99
So paying $7 premium for an option that expires in 2 months.
100 shares = $2,692 investment, $25 Call = $199 investment
***Even if I had the money, why invest nearly $2,700 when I can invest $200 & have the same profit potential?

Sorry, probably wrong thread for this but hey, wouldn't be the first time someone's done it :-)
  • #133,049
  • Nov 19, 2014 7:28pm Nov 19, 2014 7:28pm
Have been busy with futures lately...

Some nice setups on FOREX now...

GBP/JPY.. BE now.

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  • #133,050
  • Nov 20, 2014 6:47am Nov 20, 2014 6:47am
Quoting srt
{quote} Hi Joe, I would have to say one of the main benefits of options trading is that it requires so much less capital than to trade the underlying stock so I think someone with limited capital is much better off to trade options than stocks. I can get so much more exposure with options than with the stock. The time decay is definitely something to pay attention to but not too difficult to cover that cost. I could take almost any stock portfolio & cut the dollar amount required by 75% and still have the same exposure to the upside & dramatically...

Guys

I am really thankful for all your responses but this is a thread related to FX trading using J16 PA methods. So we can take the options discussions offline or on another platform if required.
  • #133,051
  • Nov 20, 2014 6:49am Nov 20, 2014 6:49am
Quoting prasad99
{quote} Guys I am really thankful for all your responses but this is a thread related to FX trading using J16 PA methods. So we can take the options discussions offline or on another platform if required.
It's no problem P, a lot of us trade different markets and vehicles. I encourage it. In fact for the new website options will be a big part of it, so it's good timing anyway

Keep it up guys
Mike
  • #133,052
  • Nov 20, 2014 8:14am Nov 20, 2014 8:14am
This thread is pretty huge.

Can anybody share a myfxbook as a proof of credibility before I spend my next month reading this whole thing ?

Thanks !
  • #133,053
  • Nov 20, 2014 8:15am Nov 20, 2014 8:15am
Quoting Insidertrade
This thread is pretty huge. Can anybody share a myfxbook as a proof of credibility before I spend my next month reading this whole thing ? Thanks !
greeeeeeeeeeeed....

...
Hero calls followed by margin calls...
  • #133,054
  • Nov 20, 2014 8:23am Nov 20, 2014 8:23am
Quoting mbqb11
{quote} It's no problem P, a lot of us trade different markets and vehicles. I encourage it. In fact for the new website options will be a big part of it, so it's good timing anyway Keep it up guys Mike

Mike


It is fine to discuss options trading if you say so. Guys feel free to post views on options trading.
  • #133,055
  • Nov 20, 2014 8:41am Nov 20, 2014 8:41am
Quoting PhAnTi'
{quote} greeeeeeeeeeeed.... ...
Excuse me pal, I must have a bug, I dont see any statement or myfxbook link. Can you post them again ? Must come from my browser or my eyes
  • #133,056
  • Nov 20, 2014 8:43am Nov 20, 2014 8:43am
Quoting Insidertrade
{quote} Excuse me pal, I must have a bug, I dont see any statement or myfxbook link. Can you post them again ? Must come from my browser or my eyes

really what does an fxbook report have to do with a strategy? ... Nothing.
Hero calls followed by margin calls...
  • #133,057
  • Nov 20, 2014 8:46am Nov 20, 2014 8:46am
Quoting PhAnTi'
{quote} really what does an fxbook report have to do with a strategy? ... Nothing.


Yup, barely nothing, a part from proving that its profitable. Or, at the very least, that the teachers are profitable I know this profitability and this credibility thing is just so irelevent for most people, but I'm some kind of a maniac. You know, trying to know if what i'm going to invest my time in is the real shit or just another smoke screen...

You know that there is a lot of smoke screens on trading forums ? a lot of big name guru with a solid (and sometimes agressive !) fanbase ?

After all those years and all those countless threads of profitable guys "giving advices" and countless gurus, most people feel like asking a statement or myfxbook as a very, very good filter to filter out the trash / rambling. After all, that's what all professional traders do, don't they ?

Hope I'm not being rude by asking that

You know they is litteraly TONS of guys out there who are saying " you needs years " , or " you need comitment ".

The fact is we dont have 5 years to test one gazillion systems because we just live 100 years on this planet.

Thats why i'm just trying to know if people are the real deal here.

PS: The fanbase / the size of the thread are not proof of success for me.
  • #133,058
  • Nov 20, 2014 9:30am Nov 20, 2014 9:30am
my trade from last night

Wasn't as smooth as I hoped

Before and after charts from the PF

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  • #133,059
  • Nov 20, 2014 9:47am Nov 20, 2014 9:47am
Quoting Insidertrade
This thread is pretty huge. Can anybody share a myfxbook as a proof of credibility before I spend my next month reading this whole thing ? Thanks !
Welcome Insider

I know it's a sea of sharks out there so I understand. Hopefully spend a few weeks checking out what we do and you'll see what we are about. I personally trade fx/stocks/futures but I do share my trades in real time with our private members. I do here sometimes as well as you'll see if you go through my thousands of posts/charts free here. Many do not pay a dime for our services and this thread is absolutely free. So you can check us out see what we do and if you don't like it always move on at no cost to you but some time. I think you'll see what we do is logical and simple and you'll give it a second look and we'd love to help you too

Best of luck in your journey!
Mike
  • #133,060
  • Nov 20, 2014 9:51am Nov 20, 2014 9:51am
only other trade i'm in at this point. Shorted on open of epay. Nice break of rising TL huge beob, and nice PPZ to line up with the rising TL break.

Most of my risk is off now as i've moved my stop above the pullback to this area

can see the monthly offers a similar view and is easier to see the TL
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