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2021.01.13 – SESSION 19 – GO ASK A TRADER

8 replies, 4 voices Last updated by Sherri Locke 5 months, 3 weeks ago
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    • #16963

      Sherri Locke
      Keymaster
      @KDAKSj4ux
      Going to The Trading Triangle LIVE 2016Ultimate Income Trader Workshop

      The video index of this session is posted and ready to view. Enjoy!

    • #16864

      Sherri Locke
      Keymaster
      @KDAKSj4ux
      Going to The Trading Triangle LIVE 2016Ultimate Income Trader Workshop

      The recording of the GO Ask A Trader session from earlier today is ready to view. Enjoy!

    • #16861

      David Wagner
      Participant
      @david@hazelnutfoundry.com
      Points: 226
      Rank: Newbie

      Hi John,

      Really enjoyed the Success Trader Party 2020 session you did.  Couple questions coming out of the great discussion:

      1. I heard a fair amount about calendars and how effectively they have worked during the pandemic (I’ve also heard you talk about this in other interviews).  Can you elaborate more on when, where, and why you’ve been using this tool in your trading over the last year?
      2. I also heard several mentions about successfully recognizing the market shifts back in Feb/March, both the collapse and as things shifted back bullish.  Can you elaborate on how you recognized that shift and managed your positions in late Feb/early March and what cued you into the bullish shift late March/early April?

      Thanks!

      David W.

    • #16859

      Dan Shaw
      Participant
      @dkshaw@gmail.com
      Points: 843
      Rank: Freshman

      Before I dive into my thought, I am an aspiring pro trader who is currently on stage 2 trading the bull and super bull. I would like to eventually reach stage 5.

      As I begin my journey as a trader and start my live trading, I am formulating my trading plan, capital allocation, and expectations around what is yet to come. I understand that at the early stages that trading the bull provides an excellent way to learn how to place a trade, learn the platform, and the mindset of how live trading differs from paper trading and backtesting.

      Keeping in mind that the bull trade is a stepping stone to more complex and subjective strategies, I can’t help but think about the success that the bull has over a long period of time vs short amounts. My understanding is that more subjectivity should lend to better short terms results since you are carving a better edge. With the bull, you just hope for the best (apart from using the bear filter, etc).

      How do current pro traders come to grips with this? Do pro traders trade the bull or do they see the bull strategy as one that does not have enough of an edge? Should I as an aspiring pro trader see the bull for what it is and keep my position sizing small so that down the road when the time comes I can increase my risk and income goals once I am using more subjective strategies? I would love to know what pro traders think of the bull and its use in their arsenal of strategies.

    • #16845

      Dan Shaw
      Participant
      @dkshaw@gmail.com
      Points: 843
      Rank: Freshman

      Building on your video (lesson 21) on money management, can you expand on this and talk about the pros and cons on trading in a retirement account (Roth IRA)? How do your general guidelines compare with retirement accounts? For example, what general percentage of that would be good to trade vs continue to leave in a mutual fund? If a percentage is not possible to give, then what considerations should be made?

      Thanks!

      • #16853

        John Locke
        Keymaster
        @john-locke
        Going to The Trading Triangle LIVE 2016Locke In Your Success CoachAPM2Trade JournalsUltimate Income Trader Workshop

        Regarding options trading size in a retirement account, I’m not a licensed financial advisor and cannot give recommendations, only my opinion about what I would do and make generalizations. In my non professional opinion, position size should be based on net worth and account size is irrelevant other than the obvious fact that the account needs sufficient assets to trade whatever you are trading. That said, there are funding and tax considerations. By that I mean if you blow the account you may not be able to write off the loss (see your tax accountant)  and you can only re-fund the account at a certain rate. Those would be the most important things for me when considering size… “if I lose xxx, then it will take me xxx years to put cash back in the account and I may not be able to write the loss off” … I would size around those concerns, and those concerns would differ based on the type of retirement account I had.

        Regarding limitations with our strategies, we are not ever naked options nor portfolio margined therefore with TD Ameritrade in the US, therefore all our strategies may be traded in those accounts. The only difference would be in margin since retirement accounts are non margined accounts but we have work arounds for any issue that has come up in that regard.

         

      • #16854

        Dan Shaw
        Participant
        @dkshaw@gmail.com
        Points: 843
        Rank: Freshman

        Understood and thank you!

      • #16850

        Dan Shaw
        Participant
        @dkshaw@gmail.com
        Points: 843
        Rank: Freshman

        A follow-up question to this is that I know there are limitations on how you can trade in a retirement account. Do any of those limitations affect any of the strategies that you developed? For example, can I trade the Bull, Super Bull, Etc..

        Thanks John!

    • #16718

      Sherri Locke
      Keymaster
      @KDAKSj4ux
      Going to The Trading Triangle LIVE 2016Ultimate Income Trader Workshop

      We highly encourage PRO, GO, and Trading Performance members to post their questions and topics to be discussed in the REPLY TO text box below at least 48 hours in advance of this meeting.

      Click here if you would like to request a mini coaching session.

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