Trader X

Well I got up at 3:30 am and the market was tanking so I put in an order to sell a new breakout low and I was short at 140275. Set stop at 425 to start and just started dragging it down. My target was 140025 and it hit my price with hardly any heat at all.

It is soooooo much more fun to be trading in the direction of the trend.

Today is of note because it could be a pivot point for the market.... it will either stay above 1400 or more likely retrace below and retest a lower level before the end of the year.

Trader X

I had a good trade on Wed before Turkey day but I don't remember what I did! Oh well. It wasn't much but at least it was a profit. I'm pretty sure I had a standard holp entry for a long and got about 1 point out of it.

Trader X

This is in response to a friends question regarding selling verticle credit spreads with only 5 point spreads on the SPX. Like sell Dec 1460/buy Dec 1465. It's a good trade but you have to use limits to get your spread filled at decent prices. Sometimes they will and sometimes they won't.

I don't usually do straight verticle credit spreads, and if I do they wouldn't be that tight (5 point spread on spx). The problem I see is that the Bid Ask spreads are going to be hard to overcome with them being so close. I prefer to do diagonals but if you put these trades in with limit orders so you get your spread price they should work.

As far as the individual strikes, I am short almost the exact strikes (1460 and 1325) as what you are proposing so I like the levels, the only difference is my longs are in March and are at higher levels (diagonals). My trades have more risk.
For example on the call side I am short Dec 1460 but long March 1550. On the put side I am short Dec 1300 but long March 1100. When I sell these diagonals I try to sell them for the same price or close. ie. 1460's for 50 and 1550's for 50. Then of course I use the March 1550's as my long legs all the way to March. Which means I may be selling 5-6 calls against that one long option.


Trader X

s 06, stop 08, PP +1, 06, 0475, out +1.25
+1, +1.25, 2.25 total.

l 05, st275, 3.25, 400, out
-2,

+.25 for AM

Trader X

l 140125 off a holp confirmed. Stop 139950, 9975, PP +0, out +1

+1

done for the day

Trader X

Long from 139875, out +1/4
+1/4
long 140025, +1/2pp and out
+1/2


Not much for an AM but it is +


I have really been concentrating on the risk reward numbers.

L 85, stop 83, out 1 at BE, out at BE on last
+0,+0

S 8325, stp 85. out 85 -1.75,-1.75
-3.5 total

l 85, stop 8225, +1pp, stop 8325, 8425, 85, 87, 88, 8850, 9025, out 9025 +5.25
+1, +5.25
+6.25 total

Net +2.75

Just a very simple entry and exit rules... no magic here!

Trader X

It is Sunday and I can't wait for Monday... I will actually be able to get some good trading in this week. I will be working on my discipline this week.

Trader X

I have been really working on some mental trading issues (yes, I know, I need lots of mental help!). I have been going through a course from Van Tharp. It really doesn't teach you how to trade at all in fact there it very little that has to do with the day to day activities of trading... entries,exits, stops etc...

What it does have to do with is the mental hurdles that make up 90% of the trading game. It is those that I am finally dealing with. In particular the internal conflicts I may have that prevent me from following my plan. I think I have 2 major ones that I've identified so far (hopefully no more!). 1. Fear of success because I don't feel like I deserve success. 2. Guilt. I want to avoid the feeling of guilt for being greedy or selfishness. I'm not really sure about the greedy part since I don't make money daytrading yet but..... LOL

Trader X