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Method using daily and weekly options to trade free anylysis

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Here is a link to some good analysis

 

https://www.ig.com/uk/indices-news/2017/11/23/levels-to-watch--ftse-100--dax-and-dow-40821

 

anylysis at i g

 

I don't use current analysis thoughts or beliefs in my trading.I use a supports entry system, where I buy at support levels.The resistance  levels  are used for short trades

 

Daily options Method
This method uses  daily options .Every cash trade is hedged with options , if long cash I buy a long put at the money or near the money is bought ,with a maximum risk of 30 ticks /usually aim for 20 or 10 ticks.It is important to manage this risk with options  as options limit risk, and because profits are expected to be small like 20 ticks.

short positions
if short cash , buy a long call at the money or near the money is bought ,with a maximum risk of 30 ticks /usually aim for 20 or 10 ticks

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Weekly method 
The starting risk on weekly options is 60 ticks .Every cash trade against weekly options is hedged with options , if long cash a long put at the money or near the money is bought ,with a maximum risk of 60 ticks /usually aim for 40 or 30 ticks.It is important to manage this risk , because profits are expected to be small like 40 ticks.

Daily Method single options.I may change this daily method to buy only options occasionally.
Sometimes there will be opportunities to buy options for 12 ticks , In place of doing hedged trades .

This method is long biased and aims to buy at supports , supports do get broken in the short term , but the options enable the trades to be kept open for the rest of the day .There several types of supports including horizontal, diagonal , channel and trend line .The stock market indices are long biased.During trends I trade diagonal , channel and trend line supports.

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The stock market indices are long biased.During trends I trade diagonal , channel and trend line supports.

 

I look for support areas to buy call options.

 

 

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Here is an example of a live trade  using Dow cash and daily optionsClipboard01.jpgClipboard02.jpg

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Professionals manage risk

 

Professionals focus on limiting risk and protecting their capital. Amateurs focus on how much money they can make.

 

IG's options allow me to limit risk, as an example price falls 500 ticks,  I don't use stops, with a 30 tick cost put option on daily,  my risk is limited to 30 to 40 ticks..After deducting the option cost, my profit  can be several hundred ticks  if  I  decide to run my profits.

 

https://profitabletraders.wordpress.com/professionals-manage-risk/

 

Here are open trades on a live account showing real trade examples

 

live trades.jpg

 

I have just closed the trades on dax for 20 tick profit  

 

See below

 

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Why do I post ?

 

Successful profitable trading is boring and I am bored most of the day  I mean 99 % of the time.I place my trades and have nothing to do all day.

 

 

Professional traders  find trading is boring , because they rarely trade  and are usually bored with the market.The market rarely offers them good exciting trading opportunities ,they don’t exist everyday or every week in the markets , they are sitting bored.

 

 

 

 

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Here is benefit of options

 

I took the trades early today, but missed the exit in the morning.I did not use a stop , but used options.The options kept me in the trade for the whole day, stop loss trader would have been taken out.

 

benefit of options.jpg

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I like this strategy. But you're just grinding away to become profitable. Could the reason you're bored be that you're making such small amounts? Is this strategy scalable to larger sizes.

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I have been profitable  for 6 months , but I am still trying to master the intraday mindset, to be able to follow  my method with discipline  and stress free.I have been on training course just try only to follow ,this type of trading and not be sucked into non method trades.Last week twice I got sucked into non method trades in eur/usd, as a result I have deleted currency charts from my platform.

 

The method I use is very good and profitable, the issue is the mindset which I am programming and training at the moment.I am going to trade larger amounts like 10  to £100 per tick and higher, once the mindset is ready.The method is scale able because IG  can cover their much higher risks in the market. 

 

I am not bored at the method, instruments I trade (Dax and Dow), I am bored because once you put on a trade, there is nothing to do until the market moves, gives you your profit or you close the trades and start again.

 

Trading this is very easy, I am training the mind, to be able to trade this method subconsciously without mistakes.Making option decisions, without thinking and automatically will not be easy for another trader.Until a trader has practiced this type of trading for months on demo , he will not see the whole picture.There are different types of strategies I use on different occasions.

 

Profitability is not the issue, money is not the issue, it is the enemy within that is the scary.This type of set and forget trading reduces the risks of psychological demons being aroused.

 

 

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