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Joes Options Adventure!

post #1 of 28
Thread Starter 
Biography:

I learned about the stock market during my 7th grade history class. We were learning about the great depression at the time and I really liked the thought of stocks. Ever since I've wanted to be a stock broker without knowing anything about the market. This past year I've actually been doing some research and a little bit of trading. I put in $1,000 and skipped the stock process and jumped straight to options. I made some good trades and some bad, eventually my balance fell to 0. After a bit more research and a lot of great help from the users on this site I'm going to give it another try. I've funded my account with 4k and my first goal is $5k. One of the biggest problems I was having was getting rich fast! It's a slow process to learn so don't jump in the markets thinking your going to get rich fast!
post #2 of 28
Quote:
Originally Posted by beehivesjoe View Post
Biography:

I learned about the stock market during my 7th grade history class. We were learning about the great depression at the time and I really liked the thought of stocks. Ever since I've wanted to be a stock broker without knowing anything about the market. This past year I've actually been doing some research and a little bit of trading. I put in $1,000 and skipped the stock process and jumped straight to options. I made some good trades and some bad, eventually my balance fell to 0. After a bit more research and a lot of great help from the users on this site I'm going to give it another try. I've funded my account with 4k and my first goal is $5k. One of the biggest problems I was having was getting rich fast! It's a slow process to learn so don't jump in the markets thinking your going to get rich fast!
I think many people would love to have that problem

Anyway, good luck, be careful, and if you have less than 200 or 500 trades under your belt, remember that the markets manage to take money away in the most tricky ways...

Your goal should be to trade microscopic amounts of that 5K and get as much as experience as possible while losing the smallest amount of money.

Then, once you are persistently profitable, and are so for a while, you can scale up.

I would also ask why you are going straight to options? I think that it increases your risks of losing your money 100 fold, because now you have to factor in the time pressure of options expiration.

I don't know anyone who jumped straight to options without being successful in stocks, and was successful in the long run.

If it is because options are going to allow you to double your money faster, then be very careful. Very.

good luck.
g
post #3 of 28
Thread Starter 
Strategy:

I will try and only hold from 1-3 days.
My plays are pure T/A (s/r, macd, stochs, and moving averages)
I've never used stops, but before I enter my first trade I will have a stop placed! (I'm still trying to figure out money management with options)

I'll try and do atleast 1-2 trades a week maybe a few more, but I'm still a senior in High School and track just started so I will be a little busy. I will post here whenever I can and if you guys think I'm doing something wrong I will listen to anything! Don't be shy and lets have some fuN!
post #4 of 28
Thread Starter 
[One of the biggest problems I was having was getting rich fast!]

Haha, sorry my English is terrible ! What I meant was I thought I would get rich after a few trades, but it's a lot harder than it seems and you have to put the time and effort into it! Thanks though ^^
post #5 of 28
Quote:
Originally Posted by beehivesjoe View Post
Strategy:

I will try and only hold from 1-3 days.
My plays are pure T/A (s/r, macd, stochs, and moving averages)
I've never used stops, but before I enter my first trade I will have a stop placed! (I'm still trying to figure out money management with options)

I'll try and do atleast 1-2 trades a week maybe a few more, but I'm still a senior in High School and track just started so I will be a little busy. I will post here whenever I can and if you guys think I'm doing something wrong I will listen to anything! Don't be shy and lets have some fuN!
My first bit of advice is: Don't do it.

(options)

I think the sophistication of people that write options (in otherwords the people who you are buying the options from, and who decide the price) is vastly higher than that of people who just play stocks, and so it is a much harder game, imo.

g
post #6 of 28
I have the same problem as you, school/work/interests in stocks. I lost 500$ on my first trade *Bummer* (thanks to Alcoa and China) lol. But i'm still in the process of learning. Now i'm back up, 3$ from breaking even, my opinion is that, try to learn more and paper trade a bit, so eventually you get the hang of it. And no reasearch or DD guarentees 100% accuracy, it just gives you a better edge and chance.
post #7 of 28
Thread Starter 
I defiantly agree with you gamblers, when I have over 50k+ I probably won't trade options very much, but with such a small account it would be hard to make any money at all with stocks?
post #8 of 28
Quote:
Originally Posted by beehivesjoe View Post
I defiantly agree with you gamblers, when I have over 50k+ I probably won't trade options very much, but with such a small account it would be hard to make any money at all with stocks?
Yes, but the problem is that if you guess the direction, or the timeframe wrong with options, you lose...

There is no way to make alot of money starting from 4K, without alot of risk.

Personally, however, I think you have a long timeframe ahead of you to get good at trading, and the best thing to do now is to try to work on your trading technique and avoiding losses without losing your money. This means taking lots of trades, but stopping out with small losses if needed... don't let a small loss turn into a big one.

As Confucius once said

"He who makes a losing trade and runs away, lives to trade another day"

or something like that

g
post #9 of 28
Thread Starter 
Thanks G, I've decided If I get down to 2k I will finally admit you are right and go pure stocks I didn't have very much time to scan anything tonight, but on my watchlist is :

Pot, Ma, Bac, BA
post #10 of 28
Thread Starter 
Bought 6 IKG Mar 20 2010 27.0 Put @ 1.65
Bought 8 YHQ Mar 20 2010 15.0 Put @ 0.18

Was trying to get 17 yhq but only got partial fill
post #11 of 28
Thread Starter 
Terrible entry on AIG. Got impatient and didn't wait for the entry target I was looking for
post #12 of 28
Thread Starter 
Sigh.. I was supposed to wait to see if AIG went to test 28.25 and if it got rejected then go in. Got impatient around 28 and jumped in. Lesson to be learned. Stop is at 25% 1.26
post #13 of 28
Thread Starter 
Looking at spy puts.. I have to leave soon so don't want to have to many open positions. We will see!
post #14 of 28
Thread Starter 
Financials starting to look pretty weak.. BAC at a resistance

ught 12 BYO Mar 20 2010 16.0 Put @ 0.44
post #15 of 28
Thread Starter 
I've decided to use 25 % stops on all my option plays.
post #16 of 28
I agree with Gambler here. Options and Pennies and the quickest way to lose your money if you don't have the trades under your belt, and only have a small amount of capital. Also the fact that you are working your stops, strategy, etc out with live trades is going to eat you alive. And if your money managment is not solid it will go quick.

As Gambler stated, miss the direction, timing, entry, or exit and you are going to get eaten alive.

I lost about 50k in my first year of options trading before I decided that I would take a conservative approach with the money, and trade the options on paper.

If you must trade options, try an approach that is less risky. Covered call writing, and put writing is a good start. You won't make much, but you limit risk.

My two cents....If you need help with CC/Put writing strategies let me know. I'm glad to give you a hand.

Nolander
post #17 of 28
Thread Starter 
Out of my YHQ Mar 20 15.0 Put @ 0.28. Lesson learned.. if you want in something bad enough go at the ask!
post #18 of 28
Thread Starter 
Sold my BAC puts with a 30% loss eod. Once spy broke out I should have sold BAC but the daily is so overbought and I had a nice triangle I was hoping it would close below, but it shot up with HUGE volume
post #19 of 28
Thread Starter 
Sold my aig 28/27 puts about an 800 $ gain. In Rimm 70 and pot 105 puts.
post #20 of 28
Quote:
Originally Posted by beehivesjoe View Post
Sold my aig 28/27 puts about an 800 $ gain. In Rimm 70 and pot 105 puts.
Nice...I was hoping you were in on Friday.....
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