Friday, September 25, 2009

Swing at YOUR pitch, not every pitch! (X)

Swinging at you’re pitch is a topic I would like everyone who trades actively or inactively to focus on. Every trader knows what setups work best for them, the key to capitalizing on these set ups is recognition. I know my pitch, do you know yours? What makes my pitch is beside the point. Point is if you know your pitch you better swing at it because some of the best trades are the trades you feel and know will work based on your prior experiences. With my new strategy I ONLY swing at my 5 star pitches, for example Visa and Mastercard this am, they were falling on accelerating volume. I saw this price action and swung full size and smashed it, 90% of my day’s P&L came from hitting the pitch. Today my capital outlay returned around 68%. This means I made 68% of my per position buying power of X$, my goal is 40% every day. My loss limit is 20% before I close my book and head for the hills.

Tuesday, September 15, 2009

Market not dealing the same cards? Time for a strategy change...(SPY)

The past week or so i have been working to change my trading system to more accurately & efficiently capture profits in the current market environment. Why the change you may ask? Simply, I'm sick watching huge trades materialize without my participation. How is that possible you may ask? "You killing it over there!" why change? The real answer... volatility is not what it used to be directly translating: stocks are simply not moving they way they have the past 9 months (up down up down) not (up sideways, down sideways) like present.

A little background on my previous trading style:

Friday, September 4, 2009

Las Vegas Sands day trading set up (LVS)

IN times where the market is thin, anything looks like a good set up. Most volume is all churning volume in spurts, with little room to capitalize unless you are a stock trader. I personally really only use stock to hedge a position, since i am an options trader i really can miss out on moves like i was seeing in LVS. The set up was buy around 14.70 and sell 14.79, there was a huge seller sitting on the offer at 14.80 refreshing every time the offer got thin more shares would show up.

Tuesday, September 1, 2009

Accelerated selling today as the S&500 broke 1000

Today was one of those days where we started off with some one off names trading such as BCRX SVA MTXX, which are all biopharm stocks. These names are speculative and rarely have any follow through considering their thin volume and lower market participation within the names. Once the speculative buyer gets his/her order filled the bid will collapse and shorts will come in, i see this the most in the options. Option sellers come in and usually sell the highest bid right before the underlying collapses, then everyone stuck long the strike will hit the bid. The shorts reap large fast rewards covering when the offers are very low.
As for the accelerated selling once we broke 1000 on the S&P500, it reminded me of Oct/Mar selling, where support points were all sold. AIG moved down around 9 bucks before reversing around 36, i got short around 40$ by way of the 31 put, i ended up pulling around 1.40 out of it. I think i left some money on the table by not buying the calls on the reversal, though you cant win them all. Above is the AIG chart i had up while trading, you can see how it failed to break above the stair stepping downward trend until support came in around 36. then it was straight back up. The vol in the options was all out of wack so it was really not worth trying to play the options, but if you got into the stock you did very well.

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