12-29-17      AMZN        +45%

12-27-17      TSLA          +44%

12-26-17      NVDA        +89%

12-26-17      USO          +113%

12-26-17      NVDA        +62%

12-26-17      USO          +93%

12-21-17      SPX           +55%

12-19-17     PCLN         +128%

12-18-17     PCLN         +117%

12-15-17      AAPL        +31%

12-15-17      MSFT       +25%

12-15-17      BABA       +93%

12-12-17       C             +68%

12-12-17      SPX          +72%

12-11-17      SPX          +29%

12-11-17      TSLA        +64%

12-8-17         C             +26%

12-8-17        MU          +125%

12-7-17       SPX           +47%

12-7-17       TSLA        +150% 

12-5-17        FB           +43%

12-4-17       SPX          +120%

12-4-17      NVDA        +90%

12-1-17      AMZN       +118%

11-29-17    TSLA         +73%

11-29-17    IWM          +118%

11-28-17    BAC           +183%

11-28-17    IWM           +66%

11-28-17       C             +117%

11-28-17     TSLA         +96%

11-28-17     TSLA         +72%

11-24-17     TWTR       +72%

11-24-17     AMZN      +78%

11-22-17     AMZN       +111%

11-21-17     TWTR       +46%

11-21-17      SPX         +122%

11-16-17     BABA       +105%

11-15-17     SPX          +89%

11-15-17     TSLA        +105%

11-13-17     MU          +75%

11-13-17     NFLX        +49%

11-13-17     TSLA        +75%

11-9-17       PCLN       +100%

11-9-17       SPX          +70%

11-9-17       SPX          +29%

11-8-17       GS           +100%

11-7-17       DIS          +50%

11-7-17      SPX           +45%

11-6-17     WYNN       +91%

11-6-17      SPX           +41%

11-2-17     TSLA          +40%

11-1-17    GOOGL      +70%

11-1-17     NVDA         +22%

11-1-17     BIDU          +58%

 

 

 

 

 

Continued from page 1 beginners guide to options trading

 

At this point you minimize your freestockcharts window for a sec and check your brokerage account, whoa you're down 25% and it's only been a couple hours, you break out in a cold sweat, your palms are wet and your mouth is dry, you google the stock ticker of the stock options you're in looking for some bad news that surely must have come out but, nothing. At this point you flip back to your free stock chart (on the 1 minute time frame) and a huge red candle practically knocks a hole through the bottom of your computer screen so you fumble for the mouse to check your brokerage account again only to realize your battery has gone out in the mouse.

 

At this point you're muttering under your breath as you tear apart your desk looking for AA batteries and once you can see your account you realize that you are down now nearly 30% so you just grab the mouse and in 2 quick clicks you get out of your position.

 

Then, in disbelief your mouth hangs open as you watch the 1 minute chart (again) and see the stock roaring back to new highs. the day goes on and the stock makes new highs. The next day (you didn't sleep all night) as you secretly hoped the stock would tank hard so you can justify your panic sell only to be dismayed after the stock is already up nearly 1% more at the open and  you sift through your previous orders only to find out that had you held on you would be up 113%, but instead you sold for a 30% loss. What happened?

 

Diagnosis: If this is you then my diagnosis is you suffer from noobie stress syndrome (NSS) Ok, so I made that part up but you catch what I am saying is that had you placed the same amount of capital on each trade you would realize that 85% (on average) of every trade will be a winner but also you will have a 15% of your trades will be losers because thats the nature of trading, there are always going to be losers but it is how you handle them that will determine your success.

 

Allocation: Allocate the same size on each trade, depending on the strength of the associated technical event, before you make a trade set an alert on your chart as to where you will exit if it goes up and also if it goes against you, do this before you place the trade.

 

Time frame: If you're not sure if the stock will get to the target this week then buy the stock options that expire next week or next month, sure the payout isn't as large but the risk is much lower than trading options that expire that day or that week.

 

Holding Overnight: Unless you're holding a substantial amount of stock in your portfolio you do not want to hold large stock options positions overnight if they expire that week, don't do it. A gap up or down at the open could easliy wipe out your position if it goes the wrong way, a move against you could force you to add to the position just to break-even, whether it hits the target or not.

 

Scale in: Never buy a position in a stock or stock option all at once. Buy in increments, mark out the support levels on your chart and set alerts for when price gets there. 

 

Scale & Trail: When you're up 25 or 30% on a stock option consider locking gains on 25 or 30% of your position. If you're up 50% then lock gains on 1/2, that way the other half that you let run is on the house.

 

Trade with Pros: Get in a trading group that will lay out the targets, stops, duration of trade and which stock options they are getting into as it happens in real time, not just an "idea" that gets emailed to everyone when the market is closed.

 

Page 3, Chart Pattern Recognition

 

 

 

 

 

 

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