I've learned timing is important when your trading on days like today. If I'm buying a put, to hedge, I wait till a consolidation period so the volatility lowers and the premium comes down. If you buy during a freefall and you get the beginning then it's ok, but if you buy towards the bottom, you pay a massive insurance premium. And if it goes sideways after, then you lose even more to premium decay.
Keep an eye on rsi, in the timeframe your expecting to hold. I look at the 1 day, 1 week for longs, 4 hours and 45 minute for swings, 15m and 5-3m for day trades. Try to buy your puts when the rsi is above 50, buy your calls below 50; but also be mindful of the trend.
Trend is your friend until it isn't. Hedging by buying into "the hole" rarely works out and GM's advice by doing that on a day like today is not good, especially for those noobies that too often just blindly follow what GM says.
Rsi is relative strength indicator. If you use a charting software they should have it in the indicators. Tradingview is a good basic one. You can set alerts when rsi crosses a target.
I usually don't enter a trade till rsi is below 30 for calls and above 70 on puts. You can also check charts of implied volatility for a ticker. The volatility is unique to each financial product. It would be hard to trade with a generic number.
Time to buy puts to have hedged to either protect profits or protect your position was a few days ago based on knowing there would probably be volatility going into the election. Bad advice GM to recommend doing today.
So Greg how come no message about what percentages you are losing on your current positions? You always comment about taking a 1 or 2 % gain. Any comments? Have never seen a comment about any losses.
Thats very helpful to be reminded that your thesis isn't wrong, just timing is. Mitigate losses instead of abandoning your future winners. Greg, thank you.
I've learned timing is important when your trading on days like today. If I'm buying a put, to hedge, I wait till a consolidation period so the volatility lowers and the premium comes down. If you buy during a freefall and you get the beginning then it's ok, but if you buy towards the bottom, you pay a massive insurance premium. And if it goes sideways after, then you lose even more to premium decay.
Keep an eye on rsi, in the timeframe your expecting to hold. I look at the 1 day, 1 week for longs, 4 hours and 45 minute for swings, 15m and 5-3m for day trades. Try to buy your puts when the rsi is above 50, buy your calls below 50; but also be mindful of the trend.
Trend is your friend until it isn't. Hedging by buying into "the hole" rarely works out and GM's advice by doing that on a day like today is not good, especially for those noobies that too often just blindly follow what GM says.
exactly
where would I find RSI ? thanks for your advice.
Rsi is relative strength indicator. If you use a charting software they should have it in the indicators. Tradingview is a good basic one. You can set alerts when rsi crosses a target.
Fed Up - I like and use Trading View, but Yahoo Finance is a very simple one you can use and learn from.
and I don't see it under layout...but thanks, I'll do some digging.
It's in indicators, its the fx symbol
watching a youtube video now, thank you!
thanks! i forgot to add I use TOS.
RSI is a basic indicator you can use in any chart you may use
thanks, got it figured out. that's very helpful advice about the 50 mark.
thanks, got it figured out. that's very helpful advice about the 50 mark.
what percentage do you look for in volatility?
I usually don't enter a trade till rsi is below 30 for calls and above 70 on puts. You can also check charts of implied volatility for a ticker. The volatility is unique to each financial product. It would be hard to trade with a generic number.
Time to buy puts to have hedged to either protect profits or protect your position was a few days ago based on knowing there would probably be volatility going into the election. Bad advice GM to recommend doing today.
What price would you get, 113?
I hedged last week by buying SQQQ @21.00 and SPXS @5.15.
Not puts right?
I don't do options so No puts. I told you how I hedged and making a killing with it so far.
you just buy and sell stock then?
yes
I'm looking forward to the big upcoming relief rally!
So GM, are you doing your own advice by hedging today with protective puts?
At what point do I unload Intel?
So Greg how come no message about what percentages you are losing on your current positions? You always comment about taking a 1 or 2 % gain. Any comments? Have never seen a comment about any losses.
Thats very helpful to be reminded that your thesis isn't wrong, just timing is. Mitigate losses instead of abandoning your future winners. Greg, thank you.
great advice...thank goodness I was wearing my mask...Im protected...🙃🤪
Good advice thanks!