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5/21/18

Options Trading With Apple (AAPL)

No trades today. In my 16 years of trading, I have primarily day traded 60-70% of the time, the other trading I was doing  attempting was in options. My understanding of options is better than average, with that said, I know I am not sophisticated (smart) enough to implement too many complexed option strategies at one time.

See below for some of the various option strategies. 
Option Strategies
Options I have baking in the oven.

Max credit by Jun 8th exp. $244
Looking for AAPL 185 Call to go higher this summer

Today my P&L was positive $152, or I could say I was visiting "Profit Island", a phrase a shamelessly stole from Rhiese over on his blog Trading & Stuff.  The trader I want to be is the kind that trades 70% options and 30% day trading.

Options give a trader the ability to lock in the profit as well as the risk. At the end of the day, we are all trading because we believe we can identify and minimize our downside risk. Currently, my winning day trades gives my account that quick injection of P&L that makes trading feel worthwhile. However, with every winning trade, I have been prone to overtrading digging myself a deeper hole to climb out of.

YM 5min 
As I mentioned, I didn't daytrade today knowing I have capital tied up in option positions. The YM was up more than 250 points, I'm happy to say that I had zero FOMO. As I reviewed this chart, my trading style/technique/method would have had me trading in chop, possibly dangerously overtrading?

Hope we all end the week, month, year on "Profit Island"!
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5/4/18

Managing A Winning Trade Is As Good As It Gets

As I type this post, I feel fortunate to be able to just sit back and manage another winning trade. I am experimenting with how I will continue blogging here at Trin Café. As many of you know, the time and motivation it takes to post and the mental gymnastics required to keep the psychological aspect of trading in check is a daily grind. Posting on Trin Café has served as a therapeutic and creative space for me to share my thoughts on trading and as I said before, I appreciate the interaction with other retail traders which are a rare breed.

Good read: Jesse Livermore on Emotional Control By  in Trading Performance and Psychology
"A trader can never become complacent. Livermore was always alert, ready, prepared to separate himself from the popular thinking of the moment, the group thinking that usually always drives the market, and to go in the opposite direction. Livermore believed in cycles. There is a time when things are good and a time when things turn bad. It is true in this life for all of us, and it is true in the stock market. The good times are coming and so are the bad times—the question for a successful trader is not will they come…it is when will they come?"

I'm thinking of putting more detail and effort into my charts and less time into actual blogging, I might be able to articulate what I am thinking while I stair at candlesticks? Chart porn is really a thing check it out.

YM 1 min Chart, letting a winner run while locking in a profit.

5/4/18


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5/3/18

Getting Cocky 5/3/18

https://unsplash.com/@clark1

Let me paint the picture for you, I put a trade on within 5 minutes of turning on my computer. As I was getting out of the shower I heard on the radio that the DJIA was down 100+ points. Did I mention my wife and my toddler and I were about to leave the house this morning? The YM was hovering around a support area, within 5 minutes price dropped below support and I quickly executed YM short @ 23679. My entry was automated to enter a target @ 23679 which happen to be the next area of support and a stop @ 23730. I anticipated being stopped out for a loss and then the market would sell off without me.

So what's so cocky about that you ask? Now it's time to go take my kid to daycare and my wife to the
hospital who's been having baby contractions all night. With my trade working, I felt confident my(big) stop order was in place so my risk is baked into this trade. So, after dropping my kid off,
and checking my wife into the hospital, I had a chance to check in on my trade from my phone

(in the hospital by my wife's side) to my surprise and delight, the trade worked well for a 100 point $500 profit. As I typed this, I was in the hospital with my wife not monitoring the market action, the last time I checked, the market was down 200+ points, I managed to capture 100 points. And yes, I was done trading for the day.

Big wins are hard to hold on to when discretionary trading, often too often times the ego and subconscious will increase the risk soon after a win and ruin previous profits. Being right and making quick money triggers a chemical reaction of dopamine that can be addictive. It takes a lot of experience and losing trades to understand how destructive trading can be. I am making effort to humble myself, the truth is, one big winning trade is a drop in the bucket for all the years of small and massive losing trades I have experienced.

I hope retail trading was good to you today as it was for me.


YM 5-3-18
5-3-18


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5/2/18

A Lot Of Trading Luck A Bit Of Skill?

As I type this my latest YM short is up around 60+ pts, then I was stopped out with a 39pt profit, I  am going to avoid being greedy, I admit that for me, greed and good aggressive trading is a very thin line. I have made multiple trades today while locking in profits and minimizing risk.

Trade moves further down without me, but I am ok with that, right now YM is testing S1, that's an additional 67 points I could say was left on the table, the truth is the money always belongs to the market until you close your position and access to trading screens. With that said, I need to close down my screens and post this before I give back my $145 profit to the market.

Good trading all.


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4/25/18

Day Trading Trading Through The Rust

Add caption
Tried to short YM 23827 hoping for the selloff to continue, then I began suffering from FOMO again and tried going long a few times. I made back some of my loss with my last and final trade that captured 49 points. I will call today's trading a small victory, despite being down 1,177 on the YM, I was able to manage my last trade and stop trading when the market appeared to be stuck in range/chop territory. YM being under 24k I believe to be significant, hope to be in the zone when/if the market sells off further, I'll be back at it on Thursday.


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4/23/18

Livermore Quotes

Some of my favorite Livermore quotes from the list below are #1 #2 #4 #10
Because I am too lazy to compile my own top 10 Jesse Livermore quotes, I pulled these from
joefahmy.com | Twitter @jfahmy


1) The stock market is never obvious. It is designed to fool most of the people, most of the time.
2) Play the market only when all factors are in your favor. No person can play the market all the time and win. There are times when you should be completely out of the market, for emotional as well as economic reasons.
3) Do not use the words “Bullish” or “Bearish.” These words fix a firm market-direction in the mind for an extended period of time. Instead, use “Upward Trend” and “Downward Trend” when asked the direction you think the market is headed. Simply say: “The line of least resistance is either upward or downward at this time.” Remember, don’t fight the tape!
4) The game of speculation is the most uniformly fascinating game in the world. But it is not a game for the stupid, the mentally lazy, the person of inferior emotional balance, or the get-rich-quick adventurer. They will die poor.
5) The only thing to do when a person is wrong is to be right, by ceasing to be wrong. Cut your losses quickly, without hesitation. Don’t waste time. When a stock moves below a mental-stop, sell it immediately.
6) Emotional control is the most essential factor in playing the market. Never lose control of your emotions when the market moves against you. Don’t get too confident over your wins or too despondent over your losses.
7) All through time, people have basically acted and reacted the same way in the market as a result of: greed, fear, ignorance, and hope. That is why the numerical formations and patterns recur on a constant basis.
8) Watch the market leaders, the stocks that have led the charge upward in a bull market. That is where the action is and where the money is to be made. As the leaders go, so goes the entire market. If you cannot make money in the leaders, you are not going to make money in the stock market. Watching the leaders keeps your universe of stocks limited, focused, and more easily controlled.
9) Failure to take advantage of a serendipitous act of good luck in the stock market is often a mistake.
10) There is nothing new on Wall Street or in stock speculation. What has happened in the past will happen again, and again, and again. This is because human nature does not change, and it is human emotion, solidly build into human nature, that always gets in the way of human intelligence. Of this I am sure.
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The Week Ahead

Posted 23 April, S&P 500: Dynamic chart continues to update price
I expect the market to be choppy this week, a lot of eyes and money will be waiting for Apple Financial Results - Q2 2018 May 1, 2018 at 2:00 p.m. PT / 5:00 p.m. ET 






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4/18/18

Patient Bear On Sidelines


April 18, 2018 


Pundits getting giddy on the market. I'm keeping my eye on ES 28,000 as possible resistance.
As long as companies are making money, does that equate to a rising market?
20/20 hindsight is fascinating, in the next bear market, what will be the smoking gun?
As I type this, I know I am still biased to the downside and have little interest in risking capital to the upside. 

I am still a bear on the sidelines, with the exception of 
WATT Aug 20 strike Call Option.



ES Daily


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4/11/18

Retail Trading Is Not Dead...Yet!

Been a while.


  I've gone silent the past few weeks, I have given myself time to think about the past 12-14 months of my trading experience. The would've, could've... has become the ongoing mantra for Trin Café much like most traders who's performance did not match their expectations. My bias to a market selloff (bear market) left me on the sidelines as I watched the market rise for much of 2017. When I did trade, it was against the overall bullish trend... I continued walking head first into bear traps. 

Stubborn or Bad timing? 


  Back in February, I posted the below chart I intended on updating on a weekly basis, a car crash and personal family matters shifted my priorities. The size I was trading with at the beginning of 2017 was 3-6 times the size I should have been trading with, 20/20 hindsight, I felt like I was going for the market's jugular (FOMO). Politics aside, I expected the volatility to dramatical increase the day after Trump was elected, I was trading as if I wanted to be the first trader to identify the housing bubble back in 2008. I know I have to take a step back mentally and physically; a complete reset for how, what, when and why I put a trade on. 

20/20


Trading View, I'm still bearish.







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2/7/18

Many Many Many Thanks!


Not my usual kind post here on Trin Café, but this seems like the best place for me to share some of my reflection on what's really important in life despite the market turmoil or poor trading performance (2017). On Friday, February 1st I went for a ride in my weekend driver, a 2006 Corvette Z06, for those who are not familiar with Corvettes or sports cars, the 2006 Z06 model is the poor man's exotic performance car with 505hp, 11 seconds in the quarter mile, and it can pull 1.2g.

With all that said, I was going into a curve at maybe 40 miles per hour, not at all an extreme speed, especially for this car, as I attempt to brake before entering the curve, I quickly realize nothing was happening. In fractions of a second, I knew trying to turn would make the situation much worse. If you ever wonder what you would do if your brakes go out, see the youtube video here, I chose to hold on went straight ahead off the road and hit a gate/pole. Thankfully the pole gave way enough to slow me down, I went up and over the pole into a spin where the car came to a stop.

I was shaken up but ok (back a bit sore), I got out the car to assess the damage and gather my senses feeling pretty bad about the damage to the front end of the car and the scratches the barbed wire fenced caused. Then Murphy's law kicked into high gear, I noticed a small flame coming from under the car that quickly grew into a full-on blaze. In just a matter of seconds, my car was engulfed in flames. After calling 911, it took 5 minutes for the fire department to arrive, another 30 minutes for them to completely put out the fire.
I have spent the past few days sulking. and trying to recall what had happen, what could I have done differently, then I began to realize how fortunate I am to have walked away from a horrific looking accident, a number of things could have gone wrong, such as my seat belt could have jammed trapping me in the car, the car could have hit a solid object like a tree knocking me unconscious; my brakes could have failed while trying to stop at a busy intersection putting other people in jeopardy, the list goes on and on.

An accident like this help put things into perspective for me, if you are religious in nature or not, being grateful for your health and well being is an important life skill that can be easily lost in a culture where we keep score by how much money is made or lost. Truth be told, I feel my priorities have been identified for a long time now, "quality time" spent with family and friends, travel and service to others. Knowing my priorities are easy to think and write about, but to live them every day as a life mission statement will be my life's purpose. In future posts here on Trin Café, I will elaborate on these priorities, until then friends, please be grateful for your health, the health of your friends and family.


Take care!

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2/5/18

Panic Button

YM Daily

The chart above is what I have been using to try to stay aware of what the market is doing from a macro perspective. The world knows that the market has fallen fiercely, does that mean it's time to put on your bear suit? To be a buyer or a seller, it all depends on your time frame and strategy. I'm attempting to slow trade this market and not be freaked out by the drama. Who would be surprised "if" the market rebounds back into its previous bullish channel in the next few days?

If I stay true to what the technicals are saying, this is still a bull market... on a daily chart. Pros buy support so the hedge funds and HFT will be looking to buy on a discount leaving the rest out of the party still shell-shocked. We all have our breaking point where we are ready to tap out and say "No Mas". My pain button is just below YM 24785, I expect we all will learn where this market will go this week.
















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