Very good technicals and fast paced action triggers.
GBPJPY is a combination of JPY weakness led by US fed rate hikes while GBP strength triggered by brexit delays and bette than expect fundamental data.
http://fxmesh.com
james16 Chart Thread
- #139,881
- Dec 5, 2016 4:29am Dec 5, 2016 4:29am
Very good technicals and fast paced action triggers.
GBPJPY is a combination of JPY weakness led by US fed rate hikes while GBP strength triggered by brexit delays and bette than expect fundamental data.
http://fxmesh.com
- #139,882
- Dec 5, 2016 8:40am Dec 5, 2016 8:40am
- | Commercial User | Joined Aug 2006 | 12,004 Posts
if you watched my monthly video here
we activated shorts in the group last night a bit lower down
Price may still go sideways and chop around giving a deeper retrace too since we are in a sideways market
have a great week folks, great early volatility this week
Inserted Video
we activated shorts in the group last night a bit lower down
Price may still go sideways and chop around giving a deeper retrace too since we are in a sideways market
have a great week folks, great early volatility this week
- #139,890
- Dec 6, 2016 4:19pm Dec 6, 2016 4:19pm
- | Commercial User | Joined Aug 2006 | 12,004 Posts
Can Mike or anyone from the j16 group answer a couple of questions about the options section ? i am focusing on equities instead of forex , but I didn't realise how big of an account it takes to actually make a decent income from stocks, as you are trading 1:1 leverage . I have been checking out options as a means to gain some leverage on stocks whilst also keeping risk at a a safe level (by using spreads in which risk is limited ). Im wondering if KevinS focuses on similar trading styles to the core j16 approach (pin bars , engulfing etc) , and...
Can Mike or anyone from the j16 group answer a couple of questions about the options section ? i am focusing on equities instead of forex , but I didn't realise how big of an account it takes to actually make a decent income from stocks, as you are trading 1:1 leverage . I have been checking out options as a means to gain some leverage on stocks whilst also keeping risk at a a safe level (by using spreads in which risk is limited ). Im wondering if KevinS focuses on similar trading styles to the core j16 approach (pin bars , engulfing etc) , and...
First off, YES options can be traded very successfully with a 2-3k account! Now that being said, I fully subscribe and teach everything that Jim/Mike recommend about approaching the learning process. Demo demo demo first, then switch over to small live trades after 3-6 months of success on demo. Options perform no differently, and other than taking a little extra effort to learn all the new terminology and vocabulary, they are the best thing ever imo! Options already have the added element of leverage pre-built into them (1:100 I am referring), so the 1:1 margin problem with equities is solved. I am aware and monitor the price patterns (pinbar, engulfing bars, etc), but focus more on the option decay curve and the passage of time (which is the only certainty when it comes to trading).
My personal trading styles, and what I teach to new students is that of maintaining a delta neutral, theta positive approach. All that means is a fancy way of saying I don't care if the market goes up or down, I just create option positions that benefit from the passage of each day (time decay).
So not knowing how much you know about options, I am seldom if ever a net purchaser of options as a standalone trade, that is fighting against time decay (negative theta). It can be done, but imo much more difficult to be profitable on a consistent basis when you are only buying options (long calls, long puts). My approach is that I sell options (creating positive theta), and then hedge off that unlimited risk through the execution of buying accompanying options. It does take time to fully grasp, but I have had countless traders tell me that once that light bulb went off, they never looked at trading the same way again. I would be more than happy to help answer any questions you have, and also have created a comprehensive tutorial section in the pf. Basically takes a new trader that knows nothing, and holds their hand through 12 months of a boot camp, options foundations program.
I hope that helps and here is an intro to options video I made earlier this year to give you an idea of how I teach.
Inserted Video
Awesome response , thanks Mike and Kevin !
At at the moment my main concern is whether or not one can actually utilise the options directionally , but without theta decay being an issue !
Im saving for a trading account, but really want to join the pf as soon as I can scrape the funds together . I've been reading around some basic options websites like option alpha and I will check out your videos too , are there any other resources you'd recommend ?
Thanks for the time taken to respond
At at the moment my main concern is whether or not one can actually utilise the options directionally , but without theta decay being an issue !
Im saving for a trading account, but really want to join the pf as soon as I can scrape the funds together . I've been reading around some basic options websites like option alpha and I will check out your videos too , are there any other resources you'd recommend ?
Thanks for the time taken to respond
- #139,894
- Dec 6, 2016 7:04pm Dec 6, 2016 7:04pm
- Joined Dec 2012 | Status: On Life's Path | 2,076 Posts
Awesome response , thanks Mike and Kevin ! At at the moment my main concern is whether or not one can actually utilise the options directionally , but without theta decay being an issue ! Im saving for a trading account, but really want to join the pf as soon as I can scrape the funds together . I've been reading around some basic options websites like option alpha and I will check out your videos too , are there any other resources you'd recommend ? Thanks for the time taken to respond
Example:
TWTR(twitter)-18.23
Bullish?
Buy>>Jan 16 Call>>2.56 ($256)(expires Jan. 20)
Option has $33 premium so will have approx. $1/day time decay as there's approx. 31 trading days before expiration.
Cost = $256 vs. $1,823 if buying 100 shares of stock.
Max. Loss = $256
- #139,895
- Dec 6, 2016 10:04pm Dec 6, 2016 10:04pm
Awesome response , thanks Mike and Kevin ! At at the moment my main concern is whether or not one can actually utilise the options directionally , but without theta decay being an issue ! Im saving for a trading account, but really want to join the pf as soon as I can scrape the funds together . I've been reading around some basic options websites like option alpha and I will check out your videos too , are there any other resources you'd recommend ? Thanks for the time taken to respond
The guys who founded thinkorswim created tastytrade after they sold to TDAmeritrade. They offer a ton of free stuff, so give it a look if you are seriously committed to learning options. Feel free to drop me a line anytime you want and I'll try and start checking in here more regularly.
{quote} Very welcome Ir1sh. Yes options can be used in a directional bias, I have just had less difficulty using them in a non-directional way. The guys who founded thinkorswim created tastytrade after they sold to TDAmeritrade. They offer a ton of free stuff, so give it a look if you are seriously committed to learning options. Feel free to drop me a line anytime you want and I'll try and start checking in here more regularly.
Right. At the moment i'm just trying to use my time efficiently until I get an account saved up. In other words is it worth learning PA etc if when I go live I won't be able to actually utilise that knowledge on stocks.
Thanks for the heads up, it would be nice to see some options discussion in this thread! I understand you look for delta neutral trades, but is it still viable to take a weekly chart trade, say a nice pin bar , and use some kind of bull call spread? I've a lot to learn about both the J16 method and options too, just wondering how the two mesh together..... do you ever take directional plays on stocks and if so, would you focus on bull call/ bear put spreads?
