All of the above for me, Jeff! LOL!

Thanks a million!

Fri, January 11, 2008 at 03:25PM | Dian
Brett,

I am going to try this again. I had a great post that I somehow deleated and it will never again be repeated.

Anyway, thanks for your reply and your candor. I truly believe we all learn more from our mistakes than from our successes. Those of us that are products of IT know that it has been driven home that position sizing and risk management is king. Many books including Market Wizards have also stressed the same. I am continually amazed in my readings that all the successful traders seem to make similar mistakes. They all, however, have the same quality and that is passion and the "never say die" attitude. The psychology of trading is, in my opinion, the single biggest hurdle to success. We all seem destined to make the same mistakes that we read about until we experience them for ourselves. I don't know why that is so but it is. The good news is that once we have that epiphany, as you have had and were gracious enough to share with us, the sky seems to be the limit. It seems to be a right of passage.

Since you have been so kind, I will share one of my recent shortcomings. It may not help the group, but is definitely has comedic value (unless you ask my wife). On 1/8, I took one of Jeff's picks, DRYS, and realized it was a great set-up for a put. I place all my orders on TOS within 20 minutes of closing. I was in a hurry to buy/sell my positions and I bought a put on DRYS. I was so happy to see that the stock was down after hours. I took my youngest to school the next morning (70 minutes round trip) and checked TOS when I got home. DRYS was down almost 7 points at the time and I was DOWN almost $1000. I called TOS to inform them of their mistake and they informed me that I sold a put and did not BUY a put. I really thought my first naked put would be more satisfying! I don't think this will help many in the group but I do think they now can immediately delete my posts as useless and save some valuable time. At least I gave the trading desk at TOS a reason to feel superior.
Anyway, thanks for sharing your successes and failures.

Fri, January 11, 2008 at 03:26PM | Sean M.

I ended pretty much flat for the week. Took FCX too early. Should have waited until the close to confirm earlier this week but didn't due to frustration.

What frustration? Tuesday I had GRMN pegged as an entry near $95 I believe. Next thing I know, I'm snoring, miss my entry, and proceed to see GRMN drop 20+ points.

What did I learn this week? 1. Don't fall asleep during trading hours. 2. No revenge trades. Revenge trades are bad.

Good luck next week!

I shorted CFC in December, I'm long GLD since then too.......I;m a simple man, just learning charting......who needs it.

Jeff
I sincerely appreciate your efforts for what you do on here, I consider it an extrordinary asset, for which I offer my sincere thanks.I'n my profession, giving it away, as you do, is a sin.
I'd have shorted CFC much earlier, but wasn't set up with my accounts. the GLD I got from you.
MUCHAS GRACIAS,Amigo.

I'm up for the week - but only in unrealized gains thus far, and only minimal.

As for everything else, I am making adjustments.

Most importantly - Thanks for "directing and supervising" this blog to greatness! I mean it from the bottom of my heart. You were on superman posting duty today!

I am absolutely up for the week, thanks in large part to the learning I have gained from the option addict over the last several months. The great thing about your blog is not even so much the great trade ideas that you float out there (which are tremendous), but much more valuable have been the trading principles that have helped make me a profitable trader, including this week. My heart felt thanks to the amazing Jeff Kohler. You truly understand the principle of abundance my friend!

Nice profits for the week and making adjustments to get more!

Thanks Mr. Kohler!

JK

I don't post much anymore, but always here lurking and enjoying the content. Set a goal to go full-time trader by summer, but I'm already there. At this pace, a GREAT last year will look like peanuts. Thanks again for all you give here!

Thanks. Never left, just laying low. Congrats on the great start to '08!

For those that use TOS, how's the software for TA? Do you use web absed or is it desktop?

As a new-ish trader I am keeping my trades small and just a few at a time. I have so much to learn, but I know I have a great leader and community to learn from here.

Jeff, thanks for all you have taught me – the year is young, but I am up and while learning to trade that is no small accomplishment. Oh yeah, I just finished my best single week ever and that too is attributable to you and your teachings.

JB,

TOS has 2 charting facilities; the ToS Charts, and the ProfitCharts... I prefer the ProfitCharts much more... I use the software client rather than the web interface, though the same ProfitChart java engine is used on either platform. Only thing I wish the ProfitCharts WATCHLIST functionality had is an import/export capability... whereas the ToS charts does...

After watching Jeff for several months, and working with the PaperTrading... all of the charts and lines and symbols that I'd amassed... I had to do all over once I moved to the live system.

There's a technical reason for losing the charting I'd done, since the papertrading is done on different servers from the live... but it would have been nice to be able to export my watchlists from one, and reimport them to the other.

ToS software is great... as far as I'm concern.

I am actually down for the week. I'm not too worried though. I've learned something from it. I realize that I am not very good at picking entry points. I have a difficult time translating stock price into option price (so I know what option price to enter into). I think TOS will help you with that, I just have to find it again! Because of my poor entries, I have to suffer through bigger losses until things actually turn around. More times than not, I hit my breaking point (as far as loss) and sell and no sooner does the stock start to behave.

I also learned that its hard to do the proper research at work when my boss can see my monitor! Kinda hard to explain why I am looking at charts! ;-) I just have to wait until he goes into meetings.

So...I am making adjustments and "thanks for "directing and supervising" this blog to greatness!

-PeterC

Gonna try something here.. a little different... and probably at least 50% ass-backwards.. but..

SO... I entered into RIG and MUR today, just prior to close... Feb ATM Calls, based on Support bounces.. both clearly uptrending... assuming the trend continues, both should have some

Can anyone tell me why I shouldn't have done this?

For MUR, I see an upside of maybe 10, and maybe 10 to 15.

(I know.. I know.. should post this in the Trading Forum).

Thoughts?

Jeff,

Have a great weekend and thanks. Since march I havebeen on your blog and the cast and my trading, though limited, has gone well. Most mistakes are entries and bad stops. I will be free one day, appreciate it.

damn phone call in the middle of post..

meant to say... both should have some... UPSIDE..

And... MUR maybe 10, and RIG maybe 10 to 15.

Thoughts?

Jeff......

up nicely for the week here....thanks for your guidance...

i am always sending happy thoughts to you and your family.....

;-)

Jeff,
I posted this the other day, don't know if you saw it...

"I feel like I have learned more with having so little money to trade with. It has sharpened my skills and *forced* me to make good decisions and stick to my rules.

If I can just say one more thing...The money that I have made in the past two weeks has been on stocks that I previously traded and lost money on. I went back to all of them and went over them with a fine tooth comb. I feel a tremendous sense of personal satisfaction in having been able to do that. It is thanks to you Jeff, that I learned to do this.

I am learning to fish, even with a few piddly worms, and it feels great!"

I posted this after I took a beating, and I mean beating, at the end of 2007. I began January with 1,100 and I am now up over 1,800. Just keepin' it real.

:-)

I'm up just a little this week. I'm playing very very small, but I let some unrealized gains on ESRX slip away this week and ended up exiting with only a small profit. Leaning...

Thanks!

I took some nice profits on half of my ESRX earlier in the week when it hit my target of $78, intending to let the other half "run". Well, I let it run all right, all the way back down so I ended up with a small loss on the other half.

I have given back a lot of the profits that I made over the last few months, so I have gone to all cash until I can find my focus and discipline again--I seem to have lost it over the last 2 months.

Yeah, I'm still learning all right.... But thanks for "directing and supervising this blog to greatness"!

Laney,

It's great to hear about your progress. I remember your post from November. I'm working on my own papertrades and hope to get tuned up enough to follow you and go live. Keep on truckin'!

Jeff:
I'm up year to date-thanks to you.
Doing much better-more consistent-working entries better and taking profits quicker. Learnin' to "see and feel" the chart and price action-not my bias or preference. I've not arrived-but I'm on the road.
Thanks so much.
Robert
CANI

thanks for "directing and supervising" this blog to greatness!

Stupid question, but what symbol do I need to use to get a chart of gold in ToS? I want something to show how its traded over the long term. There's something better than charting an ETF, isn't there?

Jeff,
This week wasn't my best but I was up. I took profits on half of a number of options (ESRX was one) and picked up a few more that I think will do well next week. I'm unbelievably grateful for this blog. I'm grateful for your sense of humor, your straight forwardness, and your cool bowling shorts. If you ever change the way you write, or the content of the blog I will come out there and poke you in the belly button with a stick.

A pointy stick.

Or... I'll bring along a step ladder and aim for your shoulder.

Either way, you'll be in trouble. Have a nice relaxing weekend. The Pats play Saturday so I'll be busy then... but I've got my work cut out for me this weekend looking for more good entries.

Like LNN, LCC, SHLD, RIG.

Jeff,

After Tom in SC asked me about Theoretical Value today on EEM, I began to wonder if this concept needs to be a regular part of my screening process when selecting option plays. As part of my routine, do I need to look this up before buying any sort of option? Or do you just look at Implied Volatility? I thought I heard you say on a Marketcast WAY back that you don't bother looking at Theoretical Value; just Imp. Vol on Prophet Charts. Am I remembering correctly? Or would you say I'd be making better entries on my options pricing if I asked both (a) what the underlying stock is telling me to do, and (b) what kind of discount I could seek out on the Theor. Val Chart on Investools?

Thanks in advance, sir.

Sledge

Jeff,

Because of your charting and teaching, I have been able to start trading full time. I am not the main bread winner of the family, so it does make it a little easier for me. It does take some of the pressure off.

Although I am doing this full time, I don't always have time to read and keep up with all the posts. I have a question from your previous post "Feel the Wrath." You stated that: "For those of you trading DRYS, consider this when thinking about whether or not to take profits. If you still question your judgement, don't question mine...(take profits)."

Why did you say to take profits? What makes the setup on DRYS different than SHLD?

Thanks again for all you do. I don't know how you do it all!!!!!

Cassie,
Good for you! :-) Let us know when you go "live."

It is very ironic how November seems to be the month that a lot of people started to lose their profits.

I ironically was up over 133% in one account and 83% in another...then November came. OUCH! What was it in November that blind-sinded so many of us? Was it a drop in IV? I look at $vix and it went up in Nov and then dropped in early Dec.

I will mention again...in case you missed my earlier post....the holy grail to trading is having a group of people to bounce ideas around....I will never forget the day when I googled "trading breakouts" and found the holy grail to options trading. OA!

We can all learn from each other's experiences.

Thanks Brett for sharing yours.

Guys, whoever is here this weekend....

I opened a thread in Chit Chat (I know, nobody likes to go there but this doesn't belong anyplace else) and I would really like your feedback and a discussion.

Please go read "An OA Face-to-Face Get Together" and let me know what you think.

Thanks....

I'm ahead of the game this week and last - though I, too, lost some ground yesterday and today. Overstayed my welcome with ESRX calls and BSC puts, among others.

Winners: calls in CELG; puts in several of Jeff's picks and also XLF. Took some profits in these. Bailed on MRX puts and EOG calls (another 'gain' that slipped away). Treading water with calls in VIP, OMG, NOK, GOOG. I'm also going into next week with puts in SHLD, PCU, KO, IRY, AMLN and AKAM.

Did anyone have the foresight to buy a put in DECK earlier this week? Thinking about entering a bearish trade there on Monday. Or will it snap back?

Cheers to all of you. And yes, go Pats!

Jeff,

Could you walk us through one of your successful trades from last year, that includes the chart pattern, IV of the options, specific option trade (straight PUT/CALL or spreads), and how you exited the trade and the reason for doing so.

Thanks.

Jeff,

Did not do well this week, because I haven't got that entry point thing down just yet.

Sean M.

Feel your pain. I made a similar mistake, except I bought a call when I should have bought a put.

Jorge,

Feel for you on GRMN. It was on my watch list and that's what I did, I watched it go down. It's that entry thing again.

Entry is the easy part for me... It's the exit that I always have a problem with.

For Example MOS: I bought calls when it was trading around $84.
Today It closed at $99.21
When do I get out?

Mike,
I've struggled mightely with exits for a long time but the thing that has started me on my path to success has been knowing what my goal is for each trade. When the stock hits that price I sell at least half of the trade. If it looks like it's still going strong I sell half. If it looks like it's rolling over, I sell it all. I got dumped on once when the stock came within ,50 of my target and then reversed big time... but normally this seems to work pretty well. It's allowed me to be up almost 30% on my account so far in January with only investing half the account. So I'm up almost 60% on the money I've invested. A big part of that has been getting out when I actually have profits to keep.

Hope that helps.

Chris.

To me the entries and exits are like flying a plane. The takeoffs are easy its the landing that can be a little tricky....simply because there are other variable working against you....emotions. Greed and Fear! I think the approach to selling half at the target price is a good...but does this approach work in all market environments? Is it best to sell into strength on calls and weaknesses on your put positions? Example, I entered DE on Thursday aroudn 88. It was strong through yesterday around 12 when it reach $92.50. but then the overall market conditions brought it back below 90. My Feb 90 calls were up 65% now 15%. Should I have sold into this strength when the market was down 150 points any my stock was up over $2. This is my stupidity....I was hoping for some short covering or a intraday reversal before close. I was thinking (the problem) that who wnats to hold shorts over the weekend with the possibility of a emergency rate cuts and next week being expiration week. So I was thinking if the market reveres and my stock is already up $2 in bad tape just imagine what my stock might do in good tape.

to much thinking...

Chris,
Thanks for the input. I guess I need some exit rules that I can stick to. Discipline has been my weakest point. I am also up in January, Way up! but on the other hand I have a total of 20 contracts (calls and puts) that will expire worthless next week due to my being so stubborn.I have been a little more active also. Instead of buying something and waiting to see what happens, I buy something and then look for something else to buy or sell.
The past two weeks have been amazing! Hope I can keep it up!

I am unrealized down for the week, however, very well positioned for the week coming. Thanks to all of you that are offering your endless expertise. This site has given me an amazing education in just a short time. I am looking forward to the lessons to come. Jeff, you are the man...I can't thank you enough.

I am having trouble viewing the video's. There is just a blank space and I cannot play the video at all. Is anyone else having this problem or does anyone have a way for me to fix it?
Thank you
Josh G
jgravz1@yahoo.com

What is up or down? with ISRG? Seems to have made a bearish head and shoulder? Dean

What is up or down? with ISRG? It seems to have made a bearish head and shoulders pattern? Dean

Jeff or anyone...
ESRX, loved it BUT NOW ?? looking at getting out with a minor loss at if we hit 70 ... any thoughts ?

Ken M,

I see your dilemma (hold or wait)? I have horizontal support at $71 and a diagonal trendline passing through 70. If it breaks below that, then it prob falls to 67.50ish. I am not in the trade, but I see REE at $70. I will be looking to enter where your looking to exit.

Calvin

Jeff,

I am just glad this week did not come so much as a shock as last week did. I was weighted to Bullish going into the new year, when I was just talking about one of the things that I need to do for the new year was to stay net neutral or close to net neutral.

One thing I did this week is start a trading journal in an excel spreadsheet, so I can track my reasoning for each trade. I suggest this for anyone newer to options for many reasons.

Calvin and Ken M.
Draw a horiz line at $72.85 on ESRX and see if you see anything differently. With huge selling vol last 4 days and negative macd divergence. It could be reversal time for esrx.

JoshG,

I've never had trouble with the videos, but I think I remember reading that if you hit the refresh button you might fix it. Try that and I hope it works.

DEES