Microsoft Looks Short Term Bearish (mInor scalp) I feel we are getting some good Down pressure on the market right now, and if the markets start to retrace recess, i expect MSFT will be hit pretty solid so that leaves a trade like this with low risk and high reward.
SL at 113
TP around the EMA / SMA on the chart, but possibly lower. Will reanalyze later .
Just went through your profile ideas and thought I saw myself in you like 5 years ago. From my personal experience, I thought I was going to do well in forex and after 3 years of trading FX, I became a consistent trader making money and breaking even. After all those years, forex was a lot of work and financially not a long term plan. But it did teach me perseverance and how to read a chart. It's funny to think how stocks are so much easier and wished I just traded stocks all those years ago. Last year, I was introduced to stock options and I gotta say, I think they are pretty brilliant. I doubled my account in 4 months but as noob, the stock market 12% correction wiped out a decent amount of those gains. I took a break for a few months as I just became a dad at the same time. In April I got back into in it and so far up +30%. I don't know how old you are but your picture looks a little younger than me and wanted to share my story. Goodluck with the signals business (maybe we have the same goals? except I don't know how to code a website haha).
WillNixTrading
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@TheBulltrader, Hey Bull - Wix makes setting up the website very easy - PM me if you ever decide to do one yourself and need some help. Its easier than you'd think to get a site up and running (cheap)
I've been a serial entrepreneur for a handful of years, but working full time also, former amateur cash game poker player, spending a lot more time working, home (with kids also), and turning up the volume on my trading.
I love the Forex market - I love the 24-5 and the most basic TA works so well with it IMO (knock on wood). I'm just evolving into more consistent trader of Stocks, and really gaining an interest in options.
I got in very early on the TESLA short i think. The market did not have that short priced the way it should have been when i entered it. For example, a few days later, Goldmann did a 180 and listed it a sell which placed me well into the money on the trade with just a few days to spare on expiry. It is definitely a dangerous market.
My theory on the Options (and id be interested to hear your take on it) is like this:
Obviously looking for what i can read as good RR
I'm not hedging investments, so Im generally looking at 1-2 week expiry's
I'm looking for some solid TA screaming for a trend in one direction or the other
Some nice fundamental supporting it that move as a tail wind is great.
Im not looking to gamble on options with the earnings reports, etc. Im looking to price up good RR's consistently, keep making those types of trades, and win in the long run.
What I love about options is you know what you're Max loss potential is going in.
They're like looking for a horse with a bad handicap.
So far, i have been very disciplined with not wagering more than 2% of my investment funds on any one trade.
Thanks for the message! Feel free to message me here, twitter, or will@pipstrip.com.
TheBulltrader
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@willn12416, I've been trading options for a year and I'll just give you my two cents advice. Don't try buy the call/put with 1-2 weeks expiration because buying options loses money everyday due to theta decay. However, if you buy a call/put with a 3 month expiration or higher, you can still get really good returns and will lose less from theta decay. For example, if you look at some of my last posts with EEM, SMH, ALK, HON, and EXR; of the 5 trades only 1 is currently losing.
I held some for 1 week and held some for 2 weeks and was to get more than 10% on each trade. So even though I bought them with a long expiration, I was still able to get good returns. As for my losing trade EXR, I bought a debit spread and made money on my sell call side. I saved myself 25% by purchasing a debit spread, and since I think EXR is grinding support, I am holding my only my long call till the prices go higher. At that time, I will mitigate my risk by opening a sell call against it and once again have a net debit call spread.
Looking at my latest options, I am definitely playing it conservative as I've made probably about 7% of my portfolio from just options. I do however hold large 3x ETF funds and rebalance my portfolio when they make a lot of money(20% in 2-3 months etc), I then take those profits and buy actual stocks. This strategy for me has been very rewarding as I get to be longterm risky with 3x funds, risky by trade with options, and then a "real" longterm growth investor in buying stocks.
Anyways, that's how I'm currently investing and its doing really well. Way better than forex and more consistent too.