19 Monitoring Trend for Continuation by Jim Dalton #mp_amt
20 These are some of my novice observations on trading with orderflow.
-Conditions in which a large lot trader who gets stuck-
(1)Market is trading sideways in PD’s Value Area or range.
(2)Enters at extremes after an extended move.
(3)Doesn’t get follow through.
21 These are some of my novice observations
An LLT player who takes market in his direction-
-(1) Market is trading above or below PD’s range, day has clear directional bias.
(2)Enters just above or below a congestion zone or resistance/support area.
(3)Gets follow through.
19 Inspired by @StoicTrader mindmaps, I tried my hands at it.
Sharing only carefully selected examples from my winning trade charts and so these setups don't always work.
Sharing for educational purpose only, do your own research
Corrections/feedback most welcome #mp_amt
@StoicTrader Chart 1 Gap and go on the upside (in context of an up trending market)
Chart 2 Gap and go on the downside (in downtrend)
Chart 3 Trading with overlapping range #mp_amt
1. Selling options randomly may result in about 80 percent winners, but one or two in the 20 percent of losers could end up with substantial losses.
2. properly managed option writing portfolio should allow its owner to sleep well at night, should be low maintenance, and should be predominantly absent of heart-pounding, gut-wrenching decisions.
1 Just because an
option has high volatility does
not mean that it is a good option
to sell. And just because an
option has low volatility, it
does not mean that it is a poor
option to sell.
2 Unless you love
to gamble, buying options is a losing proposition.
1 It is estimated that anywhere from 75 to 80 percent of all
options held through expiration will indeed expire worthless.
Furthermore, it is estimated that only 10 percent or less of all options
will ever be exercised.
2 "Option selling has unlimited
risk” is all that most investors know about the concept. The term
unlimited risk is enough to cause most investors to cross it off their list
of potential investment strategies without further exploration.
1 Skin in the Game is about four topics in one: a) uncertainty and the reliability of knowledge (both practical and scientific, assuming there is a difference), or in less polite words bull***t detection, b) symmetry in human affairs, that is, fairness, justice, responsibility...
2 ...and reciprocity, c) information sharing in transactions, and d) rationality in complex systems and in the real world. That these four cannot be disentangled is something that is obvious when one has…skin in the game.