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Hey @kareem40 looks like you are using IB TWS. How do you find the platform? Are you using it for your futures trading? Why don't you trade fx through IB?
Hi Grantx,
Yes IB is my main. I use them for Futures, stocks, options. I like their commissions, data costs and love their fills. Their FX spreads are also very good, but two problems; first minimum size lot is 25K, which with $5 commission is a bit high transaction cost. Second, there are times were I cannot trade certain pairs. Something about having 5MM in liquid assets. Last, I am still working on a good trade set up for FX. So far, only news trading ( using FX futures) has been effective with Forex, for me that is.
K
How long have you been trading for? I see you were one of the early members here on fio.
I'd like to start getting familiar with options trading and do some paper trading over the next few months. When you do your next options analysis would you mind journaling your process similar to how you have been doing with futures and fx? I imagine there is more that you have to factor into your decision making and from my utter noob perspective it appears to be an extremely complicated process. I could get a book.... but I could also watch and learn with the added benefit of being able to ask questions
Its been ten years with BigMike and 18 trading. I was not very active in both for the first few years due to job requirements. Now as I work from home (B2B sales), I am much more active. My set ups are all pretty much the same. The VSA/Market structure for 15m plus charts and news for scalping using any chart. At times it’s a combo of both. BTW, you would be surprised how at times we get news at major support…hmmm. I been thru the normal back and forth and hopping from one indicator to another for years. You will see it online thru my other journal and YT channel.
I use options when I see a very good set up on a daily or 240M chart. My most recent CL calls were support on both daily and weekly charts (VSA charts). As you know, risk can be very high on those (stops are usually at recent H/L), so I use defined risk or buy options. But I promise everything I do is simple, and I also promise that I am not good. And not very disciplined, I do make many mistakes and will break my rules. But, will continue to show all.
I have been playing around with some spread trades, but not very active there.
My goal, if possible is; one instrument, one chart, one or two hours a day, full time pay. Wait in line, right!
I was looking for your journal and did see one. You do have many threads, nice work.
K
Don't worry about being good, or having a simple approach, or making mistakes etc. No one cares about any of that and trying to pretend otherwise would be glaringly obvious to observers but most importantly you'd be lying to yourself and delaying your own progress. Just keep it honest. You have been in the game for longer than most and that alone is something you can be proud of.
So do you use options when the trade requires larger risk ie your stop needs to be placed further out than you would be willing to risk on futures? How do you make that play, I mean what are the factors you consider? Off the top of my head there are things like itm, otm, days to expiry, time decay considerations, price of the options and whether you are a buyer or seller. Not sure what else there would be?
Thank you. Just knowing that I have to explain my trades and must show all has helped tremendously. I honestly believe that it is something all traders should do. It is hard, but again trading is very.
As for options, it really depends on the set up and chart time frame. Trading off the 20m chart, I am most probably 7-10 days out and expect to be out with 2-3 days to expiration. For my 240m chart 12-20 days to expiration, any longer and the options would get very expensive. It is mostly out of the money some, but not by much ( again for cost/risk). The price selected is based on my lines ( more specially my channels). I think it would be best that I explain as I take the trade in the journal next week. Sometimes I post the set up and pass on the trade. There was a very good set up on Gold last week which I posted, but did not take. It was a bit expensive for me ( Trump volatility). I may start doing option spreads as well. I did very well with spreads on stocks earlier this year ( and not sure why I stopped!!).
More on this as I post next week, I will get specific.
Thanks
K
We had a recent upthrust. Notice down bars have the higher volume. I am guessing a test of the dash line above ( 1526) briefly then down to 1516 or 1503. Puts at either of these levels. Of course, I would look for more time if I buy the 1503 put strikes. I will look at the open to decide which puts to buy.
