options (finance) - Page 4

emon87 · #31 07-24-2007, 11:00 PM

Kirk,

Are you working at a firm or are you just doing this on your own?

emon87 · #32 07-24-2007, 11:36 PM

[ QUOTE ]
Mainly by reading books on the HISTORY of financial markets, all of the events that happened in the past 150 years, why they happened, human psychology, etc.

[/ QUOTE ]

Do you have any suggestions for good books to read?

Kirkrrr · #33 07-25-2007, 02:16 AM

SlowHabit, it's really amusing how personal you're taking this. The question you did not bother to ask - but should have - is what's my upside. It is, fact, not much greater than my downside.
Let me break it down real quick: If I buy 2000 shares of IBM (which is what I trade) at $116, that's a position worth $232,000. However, in order for me to lose $1,000 it would have to go down (or up, since I'm usually shorting anyway) 0.50c. I will never allow myself to stay in a losing trade that long!! If a trade turns sharply against me, I'm not going to stay in and hope things get better. I'm going to get out and look to re-enter (or even totally flip my position and go long if I was short before, for example) at a better time. Does that make more sense now?
Like rock said, my trading is virtually completely technical, I try to anticipate price movements based on current prevailing market conditions as well as that particular stock's patterns, since history tends to repeat itself. I'm still very much in the nascent stage of my trading "career," so to speak, and by no means all that great at it.

40k is FAR more than you need to get started. I started with much less figuring that if I lost that - of which there was a good chance - I can always reload, and it's not like trading 100 share blocks will teach you any less than trading 10,000 blocks in the beginning.

I do not work for anyone else and never intend to, unless it's completely on my terms. I trade my own money and am extremely content doing that. The mere thought of someone running my life gives me nightmares.

This post is already too long so I'll leave it at that.

Kirk

xxThe_Lebowskixx · #34 07-25-2007, 02:25 AM

Kirk,

Ive never read a single book about investing. Please give me five books to read in order.

poker1O1 · #35 07-25-2007, 02:26 AM

[ QUOTE ]
If I buy 2000 shares of IBM (which is what I trade)

[/ QUOTE ]
Is that the only stock you trade? [img]/images/graemlins/confused.gif[/img] I assume not. Anyway, can you elaborate where do you find your information to base your decisions off of?

Kirkrrr · #36 07-25-2007, 02:43 AM

[ QUOTE ]
Kirk,

Ive never read a single book about investing. Please give me five books to read in order.

[/ QUOTE ]

1. "Reminiscences of a Stock Operator" (literally #1 loved trading book of all time) by Lefevre
2. "How I made 2 Million in the stock Market" by Darvas
3. "Way of the Turtles" by Faith
4. "When Genius Failed" by Lowenstein
5. "The Intellegent Investor" by Graham, of which there's an excellent revised edition now which I'd be sure to buy rather than the old one (if that's even possible).

I'm on Way of the Turtles right now myself but it's already helped me tremendously so it's on the list.

This list is obviously very general but if you're just looking to sort of stick your head in and see what the deal is anyway, I think that list will give you a great idea of what trading/investing is about. There's obviously lots of others that I haven't read yet but which should probably be on there. I'm also not an investor , I'm a trader, so I have my bias. But you asked.

Also please keep in mind that I have gotten seriously into trading around March-April of this year, then WSOP started and I had to take lots of time off, and back again full time now that it's over. So to say I'm no authority on trading/investing is an understatement of the year.

Kirk

emon87 · #37 07-25-2007, 04:20 AM

Kirk,

Sorry to pry, and if you don't want to answer or answer via PM, that's fine. I'm just trying to learn a little more as I am going to be working for a trading firm this fall.

So you are completely self employed and do this all from your home? Are you planning on/confident that you can make a living on trading?

poker1O1 · #38 07-25-2007, 04:29 AM

I found www.tradingacademy.com. to be very helpful. Stupid question...what is the best DAT program available to the public?

xxThe_Lebowskixx · #39 07-25-2007, 06:03 AM

If I buy 2000 shares of IBM (which is what I trade) at $116, that's a position worth $232,000. However, in order for me to lose $1,000 it would have to go down (or up, since I'm usually shorting anyway) 0.50c. I will never allow myself to stay in a losing trade that long!!

so then are you a day trader?

SlowHabit · #40 07-25-2007, 06:44 AM

Kirk,

I'm not taking it personal. Or else I wouldn't have agreed I didn't know much about options. And I appreciate your explanation. Trust me, no sarcasm [img]/images/graemlins/cool.gif[/img]

Perhaps I should have mentioned I'm a value-investor. Thus, it's common for me to hold a security up to 25% of my portfolio and don't practice stop-loss [my current tolerance is probably when the stock falls 55-60% of its original price but who knows].