Folks - this doesn't work

A discussion of the merits of a particular method of trading is fine. However, we won't allow badgering of others in the forum or demainding to see their trading results. -- RTT Admin



Edited 3 time(s). Last edit at 09/11/2014 01:02PM by rttforumadmin.

Another one of those guys......I hope you didnt spend your hard earned money learning to trade or going to Gary's classes just to realize it doesn't work.

If you have been struggling with success I ask that you just don't quit, ask for help. If your not doing it then allow the people here that are to enjoy the site without your NOISE.

I assure you that it does work. Any simple system that gives you buy and sell signals works if you learn the ability to manage risk. That's all this is....oh and managing you, that is certainly the hardest part. Here are a few of my last trades using Gary's system. I have included losers because they most certainly do occur.

7/31 BIIB Puts 233 entry exit 8/8
7/31 GILD Puts 233 entry exit 8/4 small loss
8/8 PXD Calls 233 entry exit 8/12 small loss
8/19 CLB Calls 233 entry exit 9/4
9/2 CVX 9/2 Puts 233 entry Still going.
9/8 AMZN Puts Still going.



Edited 1 time(s). Last edit at 09/09/2014 04:31PM by fireman1984.

Fireman,

Thanks for posting trades - that's always helpful. I noticed for some of the stocks you trade that the options have a high bid ask spread. Like for example, BIIB it could be approximately around 10%.

Have these stocks with bid-ask spreads around 10% impacted you negatively. I notice that they have "awesome" runs sometimes, but unless your % correct on trades is high, the premium hits me hard.

Thanks in advance!

Sonicwave

Sonicwave,

As long as you are trading small you rarely have to buy at the ask and sell at the bid. As long as the stock is not moving hard you can generally cut the bid and ask in half. This works if you are trading big charts and not e charts. You have to wait a few minutes to be filled like that and trade during quiet times. And yes biib makes some nice runs. Sorry to butt in on your question to Fireman.

TD Ameritrade and TOS have something called the MARK. I'm sure other brokerage firms have it or something similar.
The MARK is the mid-price between the bid price and ask price. Here's an example, if the bid is $12.00, and the ask is $12.50 the MARK will be $12.25 Using Think Or Swim you can get both your buy and sell orders filled at the MARK price.

Sonic,

BIIB can have some outrageous spreads and if they are I will not trade them. I pay a lot of attention to open interest and sometimes volume when it comes to options. If you look at stock that generally trade greater than 250k shares per day and move greater than $4 a week you should not see huge spreads. In my experience, the more open interest and volume in the option you are wanting to trade, the smaller the spread is going to be. For example if you look at BIIB at the close of today. Looking at the OCT 330 PUT the open int is 869 and the spread is .50, I would certainly trade that. Trading only big charts on a stock that moves well you can make up .50 in a hurry. Also as ncptech stated, on anything under 10 contracts I rarely pay the bask or receive the bbid. I try to be greedy when its time to get out!

Thanks guys!!