It takes a lot of time reviewing charts to see what works for
each individual stock or index. Options always have the problem of
premiums and of decay. Try using bollinger bands on
stocks and indexes on diff timeframes, especially looking at tests
of the lower band on corrections.
Another trick I use is to look for false breakouts or breakdowns
on every time frame. The OCT 2007 high was a false breakout on a
weekly basis; the Aug 9th high was a false breakout on a
daily/hourly basis. The July 1st low was a false breakdown. If all
you did was those you can make big $$ with very few entries.
But once you train your eye you will see those
setups frequently.
I always tell traders you don't have to trade EVERY day.
No one can keep up high activity for very long. You want to make
the most money with the LEAST amount of trades. Good luck
It takes a lot of
perfecting option/stock entries
Posted by PA on 12th of Aug 2010 at 03:11 pm
It takes a lot of time reviewing charts to see what works for each individual stock or index. Options always have the problem of premiums and of decay. Try using bollinger bands on stocks and indexes on diff timeframes, especially looking at tests of the lower band on corrections.
Another trick I use is to look for false breakouts or breakdowns on every time frame. The OCT 2007 high was a false breakout on a weekly basis; the Aug 9th high was a false breakout on a daily/hourly basis. The July 1st low was a false breakdown. If all you did was those you can make big $$ with very few entries. But once you train your eye you will see those setups frequently.
I always tell traders you don't have to trade EVERY day. No one can keep up high activity for very long. You want to make the most money with the LEAST amount of trades. Good luck
thanks, good advice...
Posted by lcstrickland on 12th of Aug 2010 at 03:52 pm
thanks, good advice...