Trading Log

Entered a TSLA call Wednesday around $309....out today around $322. I'm logging my trades on Insta if anyone is interested in seeing the charts that causes my decision.

-BCT
insta: bigcharttrader

OMG!!!!!!!!!!

It's BCT. How the heck have ya been man??!!!

Great to see you are still lurking the board from time to time.

What is Insta? If ya don't mind my asking.



Never mind on the insta. I think I found ya.... I think. hehehe.



Edited 2 time(s). Last edit at 05/26/2017 03:15PM by RichieRick.

[www.instagram.com]



Edited 1 time(s). Last edit at 05/30/2017 08:59PM by Game0ver.

Instagram

added a couple trades from today

Check out my latest AMZN put on instagram

BigChartTrader

Entered AMZN yesterday at 330...out today..Bought the July 970 put...10 pt move...If interested in the charts that led me there check out my instagram

BCT
BigChartTrader

Big when did you start reducing your chart timeframe? I thought you were big charts only...

I don't understand your ?...I enter trades on 233

My guess is he's referring to your E-chart. Other an that I don't understand either.

Maybe he didn't have anything nice so say, so he followed the old rule your mom told you about. You know the one. If ya can't say something nice, then don't say anything at all.

Hehehe.





Edited 1 time(s). Last edit at 06/26/2017 01:49PM by RichieRick.

It's all good...I thought he used a smaller chart for the AMZN trade so was curious if he changed his style

Style hasn't changed...I still follow a thought process of trend decision action...I dont have to use an action chart...I would still enter based on decision i just prefer an action.

BCT

Now you're just showing your age with all that "trend decision action" talk. Hehehe....



BigChartTrader Wrote:
-------------------------------------------------------
> Style hasn't changed...I still follow a thought
> process of trend decision action...I dont have to
> use an action chart...I would still enter based on
> decision i just prefer an action.
>
> BCT

I've gotten a few PM's in regards to some trades that "DID NOT WORK"....What I do not give on instagram is the option that I purchased. TSLA for example went against me pretty hard and proceeded to work in my favor for a profitable trade. If time is on my side and the big chart indicates a direction, I do not get frustrated with a couple days against me.

Point of clarification please. I am an "old" RTP student and have not attended any of the new classes. I seem to remember that we were taught that an option trade should start going our way "right now" or we should exit the trade. I know that this seems to run counter to buying as much time as possible with the option, but that's what my notes say, even though they also say that you buy as much time as possible for things to "work out". Can you clear up this apparent confusion? Thanks.

Typically when you make a decision on a big chart (daily,233) the 55 has completed its move and will most likely go against you immediately....Whwn you say go our way "right now"...are you referring to price or indicators? The reason you got in has to change from an indicators standpoint drastically to get out.

Going our way "right now" refers to the price of the option you bought. While Gary never discussed it, a typical scenario could be that the stock price moves your way but the option's implied volatility decreases which means your option price starts dropping. Even if you bought time with your option, something in the market's perception of option value has changed and it's probably a good idea to get out. An example is what happens to implied volatility right after earnings; i.e., it almost always decreases significantly.

Conversely, if implied volatility remains the same or increases, then the price of the option should follow the price of the stock and you can stay in your position. This is just my take on what we were taught. Gary may have a very different view, but then he did not always offer detailed explanations of the "whys," many times it was just "follow the rules" in areas where he likely had already done much research in figuring out what to do. The example of the implied volatility "crush" after earnings I cited above is likely the reason Gary said to never go through earnings without insurance on any open positions, but he never explicitly stated this.

Unless something has changed..there are two times option price should be considered.
1. Buy
2. Sell

"Right Now' only changes if the daily, 233 completely flip script.

BCT

Several years of learning listed int he past few posts. Technically both are correct; however, a big chart trader isn't quite as concerned with "right now". That's the beauty of the big charts and why GW has pushed big charts. As far back as 2005 he suggested the most successful primarily focused on the big charts because you don't have to babysit the trade. BCT is correct (as if there were any doubts). It's not unusual to see a pull back on shorter charts shortly after a big chart entry. I lost many baskets learning that lesson early in my trading career. Get in perfectly on a stock that moves $10 to $20 on big charts, stock makes a $3 backup on shot charts, big charts still look good, I get out because of my understanding of "right - right now!". Then, maybe 3 or 4 market hours after exiting, short charts turn back in my favor, now agree with big chart indicators and original thought process. Stock rockets $15 to $25 in my original direction. Do that enough times and it kills your confidence. The goal is for any position you enter to go your direction immediately but it doesn't always work out that way. You should never be lazy and enter a position with expectation of "wait and see" but sometimes it may take a couple candles to percolate. If I attempted to draw any correlation, "right now" would probably be tied to to both chart size and time bought. Big chart with only 30 days of time - better be right pretty darn quick. Short chart trade with 6 months of time but W, D, 233 pointing heavily against your trade - again, better be right quick and looking for any reason to exit. JMHO.

Happy Trading!

NCT