Yet again I am glad that I started listening to you guys pretty much on a daily basis. It also helps now that you have added "audio only" to the Bob application. I take my dog on an hour long walk every morning from about 6:40am to about 7:45am, and so I can still catch up with what you guys are talking about while I am out of the house.
I appreciate that you have turned me on to trade types that I would never have considered doing. For instance, on Friday when you did the pair short /nq and /zn, I thought that I would follow along and do a 1 lot. I ended up exiting both legs at the same time for about a $350 gain.
Yesterday, I thought I would try it again. Shorted /nq at 3077.50, and /zn at 126'220.
It chopped around, and I had a slight gain but decided to hold overnight. Since it was a small paired position, I was OK with keeping it on. For most of the night, it didn't move much. Then as I was on my walk, I checked my iPhone and saw that the /zn position was up about $600. No reason to be greedy so I put in a trailing stop and put my phone back in my pocket. I ended up exiting at 125'290 with a little over $700 gain on that leg. I am still short /nq and since my thesis has not changed, leaving it. Just a 1 lot so not worried.
I am looking forward to trying currency futures next.
BTW I am short /ES from an average of 1667 and have found this trading environment challenging. And I am a bull at heart. I can't imagine what the perma-bears must be feeling.
Thanks again. Peace.
jim from Texas
I haven't written to you for ages and haven't called in either. But you have me totally completely engaged. I probably do more trades than you with my different accounts at times!!!
I first took one on one training from Sheridan mentoring a few years ago and learnt all the basic strategies like iron condors, butterflies, ratio spreads, calendars, broken wing butterflies etc. I learnt all the greeks and how deltas, vega and theta related to each other. I used to do covered calls, debit and credit spreads and naked puts prior to that. I thought I should be able to make a living with all those strategies but I was having huge drawdowns. After watching you every day and learning new things from you, I realized it is safer to sell naked calls rather than naked puts especially on index, ETF and stocks that are not take over targets. With a large account and a portfolio margin, I can always sell naked calls to reduce my delta exposures or call ratio spreads like you do at times with earning plays. It really cut down my drawdowns.
The most important thing I learnt from you is stay small. By staying small, I realized that if I am wrong, I can do adjustments and increase my size and still do the trade for a small credit or a tiny debit. In the past, if I was wrong I used to throw the trade to next month and buy extra duration but that did not give me enough Theta.
I also learnt about managing the winners. I have no problem taking short term gains any more. I keep working my losses till they become winners. I was down over $50000 on my AAPL at one time. (I was trading too big then) I had strangles and strangles and kept adjusting them till I was up $10000 before getting out. Of course, I am back in AAPL..
Luckily, I did not let myself get too short deltas on my SPY trades. I would add some debit spreads to my naked calls and kept pushing my naked calls out and stayed slightly short deltas so my net liq is OK (Actually, it is doing good with all the trades).
We have an investment club. I am trying to teach the guys some option trading. Unless you are really interested, it is not easy although they let me trade options. They were shocked when I told them I do not own a single stock but I feel I can make a living trading options!
Ours is a different world!! I hate weekends when the market is closed.
My total commissions for the year are higher than some yearly salaries, thanks to you.
I thank you and I salute you. Awesome! One of these days I will quit working my regular job. I already went part time as it was getting in way of my trading.
Keep up the good work. You guys are hilarious.
Really good Tech Tool segment today. I learn more from you in that 10 minutes than from about anything else I do. You’re a gifted teacher.
And, thanks for getting back to me on the questions below.
Tom and Tony,
Good job outta both of you. I really needed this segment to firm up my backbone and personally thank both of you for the effort and insight you put into this segment. It's really what's not on the slides that is the golden content. Specifically, how the two of you think.
Thank You, Thank You, Thank You
I watched your piece on Trader Psychology today and it almost brought me tears because you were describing me and what I’ve gone through over the past couple of years. I’ve been in the markets for years and I had a buy and hold strategy, after going through the 2007 crash I found out that type of strategy wasn’t really for me.
I tend to be a contrarian directional trader with a pretty high risk tolerance, but I have a tendency to get in early and get out early. I’ve tried to hang on to some trades that I believe in, but they always seem to continue to go against me and then I sell, and when I do they always seem to turn around.
But, since I’ve been listening to your show and to Tom & Tony, I’ve changed the way that I’m doing things. I’ve started to buy into weakness and sell into strength and I’ve kept my trade size at 5-10 contracts and I’m being disciplined about taking profits and not beating myself up about losing on a trade and /or not lamenting if I take profits and the stock continues to go in the direction I was betting on.
I can’t express to you guys at Taste Trade how much I appreciate all the hard work you guys put into educating us every day. It truly appears to be a labor of love by all of you guys. Thanks again Slim, you’re the best keep up the good work and “Great Trading.”
The program Market Measures: Jun 11, 2013 is the best trading/education I have ever been able to listen to in my trading lifetime (Short that is) But still absolutely mind boggling study and the whole team should be commended for this study!
Have a Great Day!
Dear Tom and Tony:
You guys provide an amazing service in educating us retail traders. I have been at it for a while, but hitherto listening to you guys my results have been inconsistent. I would make some great trades, then give it all back. Which can be very frustrating. It makes success seem possible, but just just outside my grasp.
Since watching you guys, it seems like so much that I have learned over the last few years falls into place, and I can discard what doesn’t work and just tweak my toolbox to suit what I am doing, and manage positions better.
At first I thought “Trade small, trade often” was just self serving, seeing as you came from a brokerage background. But now I absolutely get the wisdom of this approach.
Case in point – my futures trades have worked so much better. I basically keep the positions small enough so that I can endure a drawdown, and wait till the market does what I was expecting it to do. I am always early, which is just as well because I cannot just put on a trade and scalp in and out. I do much better when I can plan the trade and wait for it to come to me, and exit at a target.
At the last rally, I was short /ES from about 1645 or so, and it was at around 1675and I was not feeling so good about it, but I figured it couldn’t get much higher. I was fixing to go camping (with limited connectivity) for 10 days. Then on CNBC I see this clown who says that S&P is just getting started and it could easily move up another 100 points. Of course there was a little rally that day. But hearing that guy reminded me of hearing Roubini talk about double dip when S&P was at 700. At that point I just knew the move was over, and to stay the course on a contrary position. Because the position wasn’t that large, I was OK going on vacation with the open position with no stops. I did have hedges on though. I am dense, but not backward.
It was painful for a while but when it started falling I added to the position and ended up with a pretty nice win. Because I had kept the position small enough to not freak out too much when it went against me, i was able to give the position time to go be in my favor.
I now routinely adopt this approach, and my P&L has been much more consistently profitable.
BTW, that was about the last time I turned on CNBC. I no longer bother. I get no actionable information, and all it does it bias my view and keep me from being objective, a lose-lose as far as I can tell.
I have taken it on myself to be an evangelist for your website, and mention it to friends when the subject of investing comes up. It’s the least I can do. Hope to see you in person when you come to Houston.
jim from Texas
Love you guys.
I was a doctor for 33 years. I have helped many people in my community. I have now retired and am a full time trader. I have been w you guys for 6 weeks and have learn more about trading than in all my years of investing
I just watched ur trader position in society dilemma on confirm and send.
Here’s the thing. You can contribute to society in many ways. What you guys have done at tastytrade is incomparable to any contribution I have seen in financial services.
For the trader who questioned his validity. Hopefully, make your money, take care of your family and if you prosper, give back to society in some way comfortable to you. Support a little league team, be a mentor to someone in your field or someone in another business. Or
If you are extremely motivated to give back. Start something like tastytrade and help the retail investors get educated.
Be comfortable in your own skin and you will contribute to society.
Ps. Can’t wait to get up to trade, earlier here in sunny Cali. IV has a whole new meaning to me now. Nice
Tom and Tony,
First of all, I just want to tell you again that your entire show is
awesome. I have been trading options for about seven years and you
have turned my approach and results 180 degrees in the 18 months that I
have been a member. I rarely miss a show, but if something comes up I
catch up on the archive usually the same day. I can’t imagine a day
I have been a subscriber to “Bob’ from day one. Initially, I thought
it was mostly for me in a small way to pay you guys back for all you
do. However, the transparency of everything you do with the app blows
away any of the gazillion newsletters, trade advisories, and trading
rooms that I have succumbed to in the past. “Bob” really helps me
connect the dots with everything you do.
FYI, through 6/30/2013 I have taken a total of 245 trades. Currently I
have 40 open positions. I have booked 172 winners, 33 losers. While I
am currently a little North of 83% winners, even if every open position
becomes a loser (they won’t) I will be at 70.2% winning trades. I have
been doing them very small to prove the model to myself. I am positive
for the year in a very challenging environment. I think I am getting
Finally, please pass on my appreciation to Al and his entire research
team. WOW! Having had a moderate amount of options trading experience
over the past seven years I had no clue what I didn’t know! For the
first 10 or 12 months I could easily stay up with what you were
providing. The last several months I am “drinking through a fire
hose”. I find myself having to watch some of the Market Measure
segments a couple of times to really get a grasp of what you are
presenting. Heck, I am spending so much time making sure I understand
it my golf game has taken a hit.
Keep up the great work…….I can’t thank you enough!
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