Normal Trade Expectations Resume

I know I have mentioned about varied trading styles within the day trading plan. The original premise was that it was going to be a day trading room where we place and close trades within the first hour or so or the market open. We gravitated towards holding a few positions overnight then over a week then to expiration. Well, there is a service that buys options specifically to hold for medium term timeframes. I considered it duplication and I emailed the powers that be this very issue.

Today was a test of returning to the original premise. We opened only two trades and closed the trades within minutes. We were done by 1000h and both trades averaged 45% net profits for me and most anyone else who was capable of actually doing the trading required. This signals the return to this format starting tomorrow. Everyone liked it better, at least enough to make it count.

The setups were for AMZN and X, both are very liquid stocks and I could tell that John was up to something different as he was having us plan on trading June options...seeing as they expire tomorrow there was no way he was going to have us hold these trades overnight. I doubled my trade sizing, setup the option chains in the order boxes for market orders and left them active in separate boxes for speed of execution. On click to buy and one click to sell.

Market order in once he even breathed the timing to get in and market order out as soon as he finished asking about our various entry prices as that usually is followed immediately by a sell seeing as we were up near the 50% mark. I did wait for the word "sell" in fairness to the group and in order to not get out too soon. Sadly both trades could have been held for another 30 minutes or more and the average return would have been over 100%, but that was not part of the exercise.

I got very good prices in and out and was quite satisfied with the trades. Some people didn't get in in the first place... which baffles me. Perhaps they have broker issues but an order on a very liquid option with price spreads in the pennies needs to be a market order for speed of execution as that will win every time over waiting for limits... or at least will win more often than limits on average as trades are missed completely on limits, in and out.

So this has me re-thinking the i-phone as this would be the main reason why I would get one, in order to be able to exit orders when they need to be exited due to day trading holdovers. I don't really need it for the other services as they are not quite so time sensitive. I may get one anyway though as today I made up for the paper loss on the exit I missed due to not being able to get a WiFi connection on Friday.

Closing the day flat all the time will be a nice relaxing change of pace for the trading room.

Jeff.