There's this small room which is a sundry shop at level 9 of Menara Haw Par. This indian middle age man runs this shop alone. He seems quite a relax and easy going man. Not married, no children. Travel extensively. To where? Places like the Venetians, hong kong, to enjoy the casino, the culture, the atmosphere. Generally, this man knows how to enjoy life ..
Wait? wasnt him just the sundry shop owner? How can he afford to go that type of place often?
The surprise is, it turns out he's a US commodity trader, for the past 10 yrs. Must have accumulated some wealth. Then open a small kedai runcit, and pass time. Wow. he's done what i want to do.
He is a day trader, only trades once a week. How nice. And btw, he opens his shop at 9am, close at 3pm everyday.
What a life.
24 October 2007
24-10-07 : MA put trade
MA broke down below 150, thus presents an opportunity to put.
Daily chart :
15min chart :
5min chart :
Note that 146 may be a support at 5min chart. Thus may want to wait below 146 to put. If gap up tonite, and fall back again below 150, then can put immediately with target at 146.
Daily chart :
15min chart :
5min chart :
Note that 146 may be a support at 5min chart. Thus may want to wait below 146 to put. If gap up tonite, and fall back again below 150, then can put immediately with target at 146.
24-10-07 : GS Call tonite
Propose a call tonite in view of GS's stubbornness of not to go down.
15min chart forms an inverted H&S, with 223.20 as the neckline, if break up, will go to $228 soon.
Use my call checklist, ensure all criterias are met, then go in for a good GS call !
However, I must say this is a more risky trade, since daily chart is still bearish, with MACD cross down, and price fall below MA20. So beware ! Enter at your own risk.
15min chart forms an inverted H&S, with 223.20 as the neckline, if break up, will go to $228 soon.
Use my call checklist, ensure all criterias are met, then go in for a good GS call !
However, I must say this is a more risky trade, since daily chart is still bearish, with MACD cross down, and price fall below MA20. So beware ! Enter at your own risk.
Summary of my call / put strategy
What are the things most important to my decision making of whether to enter a trade or not ? These are the most crucial factors :
(1) Trendline - daily, 15min
(2) Breakout ( i call box up or box down based on Darvas's Box Theory)
(3) MACD (5,35,5) - daily, 15min, 5min must all sync in 1 direction
(4) MA20 cross MA50 for Daily & 15min charts
(5) Price above or below MA20 for 5min chart
(6) Extreme price swing in 1 night
(7) Candlestick patterns -esp. Bull/Bearish engulfing, Doji, head & shoulder, double top & bottom
I do look at Bollinger band occassionally to look for outliers that can cause an immediate pullback or rebound (but rarely). I do look at volume sometimes to gauge the strength of the breakout (rarely also).
I dont look at news (except earning announcement date), i dont care about other things. I only look at 7 counters permanently now, and i dont care about the rest of Nasdaq or NYSE stocks (unless my friends told me to take a look at).
These are the only 7 counters I look at everyday :
(1) GOOG
(2) GS
(3) BSC
(4) BIDU
(5) AAPL
(6) MA
(7) RIMM
They are all highly volatile stocks, thus you may say I trade volatility essentially.
I guess there's nothing much to say about my strategy any more.
(1) Trendline - daily, 15min
(2) Breakout ( i call box up or box down based on Darvas's Box Theory)
(3) MACD (5,35,5) - daily, 15min, 5min must all sync in 1 direction
(4) MA20 cross MA50 for Daily & 15min charts
(5) Price above or below MA20 for 5min chart
(6) Extreme price swing in 1 night
(7) Candlestick patterns -esp. Bull/Bearish engulfing, Doji, head & shoulder, double top & bottom
I do look at Bollinger band occassionally to look for outliers that can cause an immediate pullback or rebound (but rarely). I do look at volume sometimes to gauge the strength of the breakout (rarely also).
I dont look at news (except earning announcement date), i dont care about other things. I only look at 7 counters permanently now, and i dont care about the rest of Nasdaq or NYSE stocks (unless my friends told me to take a look at).
These are the only 7 counters I look at everyday :
(1) GOOG
(2) GS
(3) BSC
(4) BIDU
(5) AAPL
(6) MA
(7) RIMM
They are all highly volatile stocks, thus you may say I trade volatility essentially.
I guess there's nothing much to say about my strategy any more.
My Call & Put Entry Strategy
This is the checklist i need to tick before enter a call or put trade. Its no secret. All the criterias are plain simple, even a child can do it. All it takes is stick to this plan, and there's 60% chance the trade will turn out well.
======================
Call Checklist
=======================
Straight Call
Date :
Trade No :
Entry point checklist
Market Bullish
Daily trend up
Daily MACD Cross 0 up
Daily MA20X50 cross up
15min MACD cross 0 up
15min MA20X50 cross up
5min MACD cross 0 up
Price above 5min MA20
Break box up
Touch daily trendline
Rebound from daily trendline
Option chosen
Option
Strike
Premium
Intrinsic Value
Time Value
Highest price of the day
Lowest price of the day
Exit Point Checklist
No of days / mins hold
Sold price
Net profit / loss
Net actual profit %
=================
End of checklist
===================
As you can see, my exit strategy is based on my own discretion. No hard and fast rule. Mainly $0.50 profit / $1.00 / $1.50 / $2.00 profit based on my opinion on the strength of the move in very short term.
I usually just queued to sell at a fixed $0.50 interval price after i buy an option.
My cut loss point is $1 for high volatility stock like GOOG, BIDU, GS. $0.50 for less volatile stocks like AAPL, MA, RIMM.
======================
Put Checklist
=======================
Straight Put
Date :
Trade No :
Entry point checklist
Market Bearish
Daily trend down or uptrend met a major resistance pt
Daily MACD Cross 0 down
Daily MA20X50 cross down
15min MACD cross 0 down
15min MA20X50 cross down
5min MACD cross 0 down
Price below 5min MA20
Break box down
Touch daily trendline
Fall from daily trendline
Option chosen
Option
Strike
Premium
Intrinsic Value
Time Value
Highest price of the day
Lowest price of the day
Exit Point Checklist
No of days / mins hold
Sold price
Net profit / loss
Net actual profit %
=================
End of checklist
===================
======================
Call Checklist
=======================
Straight Call
Date :
Trade No :
Entry point checklist
Market Bullish
Daily trend up
Daily MACD Cross 0 up
Daily MA20X50 cross up
15min MACD cross 0 up
15min MA20X50 cross up
5min MACD cross 0 up
Price above 5min MA20
Break box up
Touch daily trendline
Rebound from daily trendline
Option chosen
Option
Strike
Premium
Intrinsic Value
Time Value
Highest price of the day
Lowest price of the day
Exit Point Checklist
No of days / mins hold
Sold price
Net profit / loss
Net actual profit %
=================
End of checklist
===================
As you can see, my exit strategy is based on my own discretion. No hard and fast rule. Mainly $0.50 profit / $1.00 / $1.50 / $2.00 profit based on my opinion on the strength of the move in very short term.
I usually just queued to sell at a fixed $0.50 interval price after i buy an option.
My cut loss point is $1 for high volatility stock like GOOG, BIDU, GS. $0.50 for less volatile stocks like AAPL, MA, RIMM.
======================
Put Checklist
=======================
Straight Put
Date :
Trade No :
Entry point checklist
Market Bearish
Daily trend down or uptrend met a major resistance pt
Daily MACD Cross 0 down
Daily MA20X50 cross down
15min MACD cross 0 down
15min MA20X50 cross down
5min MACD cross 0 down
Price below 5min MA20
Break box down
Touch daily trendline
Fall from daily trendline
Option chosen
Option
Strike
Premium
Intrinsic Value
Time Value
Highest price of the day
Lowest price of the day
Exit Point Checklist
No of days / mins hold
Sold price
Net profit / loss
Net actual profit %
=================
End of checklist
===================
23-10-07 : GOOG call trade turns out ok
I bought a GOOG call Nov07 $670 strike (yes, that one again) on 22-10-07 before market closed. Option price is closing price = $12.00.
I queued to sell at $13.00. But upon seeing the market is bullish, and GOOG is already up $10 before market open, I cancelled the sell order, and planned to sell upon market open, at market bid price.
Market opened at $15.80. It went up to $16.00 where I sold my option @ $16.00. Profit is $4.00. Nice. Option price retraced to $15.00, before it went up to $19.20.
I failed to catch this move. Felt like going in, but no indicators to support, thus did not go in.
Also, at $670 area around 10pm, where option price is at highest, and hence put option is at lowest around $10 area, i intend to go for a put for the expected coming retracement, but did not go in either. Again, lack of indicators to support.
But i did it at paper trading, and it went well. Got 1 put @ 10.70. Got another put @ $9.70. Thus averaged down to $10.20 for 2 contracts of Nov07 $650 Put.
Sold @ $11.20 for both puts later, thus $2 virtual profit. Since its a strongly bullish night, I didnt go for the put.
Below is the Call trade :
This is the put trade :
I queued to sell at $13.00. But upon seeing the market is bullish, and GOOG is already up $10 before market open, I cancelled the sell order, and planned to sell upon market open, at market bid price.
Market opened at $15.80. It went up to $16.00 where I sold my option @ $16.00. Profit is $4.00. Nice. Option price retraced to $15.00, before it went up to $19.20.
I failed to catch this move. Felt like going in, but no indicators to support, thus did not go in.
Also, at $670 area around 10pm, where option price is at highest, and hence put option is at lowest around $10 area, i intend to go for a put for the expected coming retracement, but did not go in either. Again, lack of indicators to support.
But i did it at paper trading, and it went well. Got 1 put @ 10.70. Got another put @ $9.70. Thus averaged down to $10.20 for 2 contracts of Nov07 $650 Put.
Sold @ $11.20 for both puts later, thus $2 virtual profit. Since its a strongly bullish night, I didnt go for the put.
Below is the Call trade :
This is the put trade :
22-10-07 : GS Put trade turns out ok
The trade is summarized as below. Bought before market closed on Fri, sold
when market opened by Mon. Autosell order actually, and i was not around.
Reason for the trade : Broken 220 support down.
Share price when option bought : $218
Price target : $215 (which is reached)
Thus $3 down in share price results in option price up $2 actually to $12.90. But i queued to sell at $11.90, thus only $1 profit for me.
when market opened by Mon. Autosell order actually, and i was not around.
Reason for the trade : Broken 220 support down.
Share price when option bought : $218
Price target : $215 (which is reached)
Thus $3 down in share price results in option price up $2 actually to $12.90. But i queued to sell at $11.90, thus only $1 profit for me.
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