funkymonks - testing august low - monday, page-7

Re post from ZL Thread

Caylus

When I first started options trading, I attended "one of those seminars" and paid the big $$ for someone to "teach me" all the time wondering why are these people teaching me and not just trading their own strategies and making money.

I gave them credit and applied "their" strategies only to realise (slow learner) they were in it for the traing fee and the long hard process of bleeding you dry with brokerage fees and eventual losses over time.

The big problem I found was it was "overcomplicated" lets face it, the market goes up or the market goes down.

Prior to option I traded species very successfully, particularly prior and post GST, but I found them to be boring because the outlay had to be big enough to make money, but small enough so as not to attract attention. Worked well but $$ return was slow.

I thought if I traded with options the same way I traded the species seemed like a good idea and ....BOOM...sure is.

A few rules

1. Discipline...Disipline...Discipline
2. Take a firm view of the direction of the market
3. Limit the number of Companies to well know PREDICTABLE stocks
4. Know when youre in and when your out and DON'T change 5. your mind when in a trade
6. If the trade goes against you by 20%...GET OUT
7. Make every day your first day...BE SCARED

I like your strategy to skim the capital and let the trade run and over the last month if I had done that, I would have made more but....I like to keep focuses looking for the next set up so this would distract me but I see your point and it would definately pay $$

Anyway...

Thanks for the comments from all..

Have a great days trade