When to Cut Losses Trading Options (EXPLAINED)

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Sky View Trading

Sky View Trading

Күн бұрын

Пікірлер: 256
@skyviewtrading
@skyviewtrading 4 жыл бұрын
🚨 Hey all! Thanks for supporting the channel! If you’d like to see a more in depth breakdown of our current trading systems, we put together a quick video here - skyviewtrading.co/4dzfrJb
@great8568
@great8568 4 жыл бұрын
How do I sign up? Whenever I click the green button at the bottom that says "Send me the free course" it just auto-scrolls back up to the top of the page but I can't find anything to click or enter.
@sandrojlu
@sandrojlu 4 жыл бұрын
First time I finally hear stop orders are bad.
@FarisAbdelmutti
@FarisAbdelmutti 8 жыл бұрын
Amazing series!! I've been trading options for 6 years now... Was tough at first but been growing my account 33% YoY for the past 4 years... Took me a while to get good and understand how things work.... And your videos encapsulate the top key lessons perfectly!! Well done!!! This guy is the real deal!
@skyviewtrading
@skyviewtrading 8 жыл бұрын
Sorry for the late response. But thank you so much for the feedback and kind words. Many more videos to come! Our goal is to help traders cut down on the long learning curve that it took us others years to learn.
@donutviper1
@donutviper1 5 жыл бұрын
Faris Abdelmutti So now you’ve been trading for about 9 years now? I’m so so new 😐 How are you doing these days? Do you trade full time?
@jgfunk
@jgfunk 8 жыл бұрын
I've watched a ton of trading options videos over the past few months. Skyview's are the best. Reason? Most informative, while being simplistic and relatively easy to understand. Keep up the great work. After buying stocks for many years, I'm going to give option trading a shot.
@skyviewtrading
@skyviewtrading 8 жыл бұрын
Thank you so much. Many more to come! Stay tuned!
@jacobdavid
@jacobdavid 8 жыл бұрын
Cool points. If there are 14 or 15 more days to expiration and the charts are moving sideways, patience is key, in the hope that within the next week, it will climb or tank, if it is a call or put you are sporting. Like Adam says, Patience is key. And in the mean time, buy another option, so that you can free your mind of this slow option.
@syco546
@syco546 5 жыл бұрын
im gonna focus more on small position sizing and not worrying about losing trades anymore. I want some coaching lolll
@turky2tyme
@turky2tyme 4 жыл бұрын
I started off using a 10 percent stop loss and could never catch a break stock would do a fake out and hit my stop loss and I kept losing money I stopped putting my stop loss and finally started making profit
@pawellemanski1866
@pawellemanski1866 2 жыл бұрын
Do you day trade?
@lj4001
@lj4001 2 жыл бұрын
This excellent advice n motivation for beginner n seasoned traders alike! Big thumbs up 👍🏼 Nice visuals n explanation too!
@skyviewtrading
@skyviewtrading Жыл бұрын
Thank you very much!
@NYProfessional
@NYProfessional 4 жыл бұрын
Would you suggest rolling your position before being ITM?
@jameslovell1618
@jameslovell1618 4 жыл бұрын
I use stop orders when a position is profitable to secure profits if the price drops, but not as a way to manage loss. I adjust it as the price increases until it triggers or I decide to exit if it starts to run sideways and I'm ready to reduce or fully exit my position. It often results in exiting too early, but I'd prefer a quick dip to cash me out at 10% than to try to predict the top and lose the money I made.
@empemitheos
@empemitheos 2 жыл бұрын
this is why you define a rigorous model, and then use the probabilities of the model to determine when it's falsified, within a margin of error, to determine your stop loss, this allows you to get access to the full potential of wins in that model instead of cutting out potential wins with an arbitrary stop loss, this is pretty simple but most traders don't really deal with probabilities and models though they should
@JonesLarryG
@JonesLarryG 6 жыл бұрын
I am very new to options trading, But you explained it very well vocally and visually. I greatly appreciate it.
@choose2shine822
@choose2shine822 8 жыл бұрын
Watching your videos are so helpful and easy to follow. I am looking forward to getting into options trading soon. Thank you 😊 for sharing this information.
@jmontoya4689
@jmontoya4689 4 жыл бұрын
What percentage should you take a loss, even if the expiration date is 100 days away, 4, 8, 12, 20, 32, 52, 84%? There has to be a time to cut losses. And the idea is if your down say 20% then keep a watch list and buy back in at 30 % down. Thanks for the video
@robert61982619
@robert61982619 6 жыл бұрын
Should you have a max loss tho or is a complete loss of the risk capital acceptable because its defined and small?
@unpostedtrader4504
@unpostedtrader4504 4 жыл бұрын
Stops are necessary, you may be referring this video to day traders but scalpers or swing traders just cannot let their winners be cut and lossers run.
@FT099
@FT099 6 жыл бұрын
Theres such a thing as a Stop Limit Order. It doesnt always have to be at market price. You can still set a limit. Say you bought at $10.20, you can set your stop at $10, and your limit at $9.55. This way the order stays at idle until the price hits $10, and as soon as it does, it dumps the stocks at $9.55 or higher. You can obviously play around with these numbers. You can even set a % instead of $ amount.
@angelreyes0098
@angelreyes0098 Жыл бұрын
This happened to me today. I was about to cut losses for capital. Decided to hold off and now the same trade is itm! Just be patient.
@skyviewtrading
@skyviewtrading Жыл бұрын
Patience is key! Thanks for watching!
@bd5866
@bd5866 Жыл бұрын
Thank you for this valuable lesson!!!
@skyviewtrading
@skyviewtrading Жыл бұрын
So glad to hear it helped!
@Ralph42783
@Ralph42783 4 жыл бұрын
You have by far the best tutorials
@justdentoryon112
@justdentoryon112 3 жыл бұрын
No real trader uses the stop loss. Keep your SL in mind, but dont give them the choice of knowing where they can kick you out.
@rajkumarmeena5974
@rajkumarmeena5974 6 жыл бұрын
thanks man !! i have experienced all what you have said but i figured out things which you suggested on my own but your video made my mind calmer about my decisions.
@SensaSand
@SensaSand 3 жыл бұрын
Thank you for the best videos on Options. You are simply amazing. But no stop loss? What about when a major crash happens?
@SensaSand
@SensaSand 3 жыл бұрын
I See your point! very good advice! Thank you!!
@skyviewtrading
@skyviewtrading 3 жыл бұрын
Thank you very much!
@nicholasa1328
@nicholasa1328 5 жыл бұрын
Very informative...I think most retail premium sellers (like myself) are too caught up in the strikes getting tested vs. where the stock actually closes by expiration
@kl8922
@kl8922 6 жыл бұрын
Best way to win is to bid a ridiculously low premium (like 80% less than current bid price) for any single option... if you are lucky that any one triggers, probability to be in the money would be significantly higher...
@chrisbergeron5625
@chrisbergeron5625 3 жыл бұрын
Excellent lesson. 🙏 I've been far more successful with my smaller trades. It also helps to utilize a variety of option trading strategies in different market sectors. It's a marathon, not a sprint. 🐢🏁🐰
@lj4001
@lj4001 2 жыл бұрын
Lol yeah sprints r for day traders but those with smaller accts might not have the luxury of unlimited day trades so Swing Marathon to the Finish line it is! 🏁
@kevin5vish
@kevin5vish 4 жыл бұрын
love your channel
@dc-wp8oc
@dc-wp8oc 6 ай бұрын
Adam, there is a lot to unpack here. When you say, "90% of traders lose money" what exactly does that mean? And where does this statistic originate? Why would anyone endeavor to participate in options trading facing this depressing statistic?
@quixoticPrancer
@quixoticPrancer 5 жыл бұрын
Simply using a stop-limit order instead of a stop order will mitigate the concern about market order price-fill uncertainty.
@garrettwhite5032
@garrettwhite5032 14 күн бұрын
This advice should be criminal. Optimal Game Theory would advise cutting a loser even more quickly with options. If you’re right on direction and wrong on timing with options, YOU’RE WRONG. Why? Because the longer a trade works against you or consolidates especially if it’s now out of the money, not only is the price against you, but you also have theta (time decay) working against you as well. With that said, even if price were to back to your entry, you STILL won’t be at Breakeven because you are trading the Greeks. My final counter to this approach would be this - if you think about the commonalities of your best trades, I imagine they went in your favor right away and never turned back. With that said, why would you want to be aggressive cutting your winners but hold your losing trades for longer? 🤯 I would be very interested to hear your thoughts around these concerns. Great video graphics none the less!
@shrutikasawant7
@shrutikasawant7 8 жыл бұрын
Hey sky, sorry but i think both strategies are equally good . i have been trading from last two years and following trends & cutting losses really helped me. perhaps in both strategies amount of profits will be same, in your strategies you will take big loss on day & small profits regularly. but i will take small & frequent losses regularly & big profit one day but certainly my strategy will not blow my account on one trade.
@skyviewtrading
@skyviewtrading 8 жыл бұрын
We won't blow our accounts up either on one trade. Position sizing is equally important! Thanks for the comment. All the best!
@FlashThe
@FlashThe 7 жыл бұрын
This can apply for trading forex, common stock or other financial assets?
@poisonpotato1
@poisonpotato1 4 жыл бұрын
When you say an option is worth something like the difference between the price and strike price. Like if you bought a call option and the price goes up, Do you actually have to exercise the option or can you just sell the option
@nobituus
@nobituus 4 жыл бұрын
Your option clips are amazed!
@peterrios1960
@peterrios1960 4 жыл бұрын
Would u recommend this for buying naked options
@rafaelmarquezf
@rafaelmarquezf 2 жыл бұрын
Dear Sky View: Love the video, but lets say you are in a day tradingoptions trade. The trade is wide but not that extravagant, when it goes against you(with a strong opposite bar), you can try the limit order but if it does fill. The spread could become even wider and now you are even worse. Should you just sell market early and get out? Thats the dilemma I have. I usually hold on, start averaging down, and it has turned out really bad some times.
@sbyadavckt
@sbyadavckt 7 жыл бұрын
First of all i thanks you for such nice and simple video what about options Greeks?..
@wongrichx
@wongrichx Жыл бұрын
If I write a put of QQQ at a lower price with the intention to buy the QQQ at that price, do I need to cut losses?
@skyviewtrading
@skyviewtrading Жыл бұрын
Hello! In that case it sounds like you are okay with being assigned shares of stock. So you would not cut losses there. In other words, you would be holding on to a trade with "unrealized losses." Hopefully that makes sense!
@justinkraker2239
@justinkraker2239 5 жыл бұрын
Yeah sure the price has a high probability of touching the break-even point. But if you set good stops, they sure as hell aren't at break even. You set your stop at a price level that will only be hit if your reason for entering the trade is almost certainly wrong. At that point, you exit to save your trading capital, and to free your capital for the next trade. Obviously if the option is nearly worthless, you might as well hang onto it. What am I missing here?
@wiseman4256
@wiseman4256 8 жыл бұрын
Hi when you say it's a bad idea to let your winners run for too long and not too cut your losses short too fast are you saying this is a bad idea for swing trading also? or are you talking about other types of trading?
@SatishKumar-er2lq
@SatishKumar-er2lq Жыл бұрын
Hi Team, I have one question, I am deciding SL using 1hr time frame LL, do I need to wait for closing the candle H1 LL or do I need to define my SL at 1H LL touching point itself...? please check and confirm. Thanks.
@skyviewtrading
@skyviewtrading Жыл бұрын
Hello! We aren't daytraders so we don't have any specific mechanics for a 1 hour chart. We are looking at daily charts, and we're also not using technical analysis to trade. I like to say we are trading the probabilities and statistics in the option chain, rather than the emotions and opinions of a stock chart. Hopefully that makes sense!
@filippomallozzi551
@filippomallozzi551 5 жыл бұрын
great video! I have a question..hope you answer! I have a doubt about it, for example I want to trade Only Vertical spread with 80% probability of success. Lets assume that my return is 20$ and my Max loss is 90$ (ROI 22%)...if I dont use stop loss I Will always be a loser because I win 0.8x20$=16$ and I loss 0.2x90$=18$. I Think the Only way to be profitable without using stop is to choose trade with the correct ROI (in this example >25%)...am I right, is that the key? And do trade with this ROI really exist? Hop e you answer
@ricomajestic
@ricomajestic 5 жыл бұрын
Exactly! If you can't reduce the size of your max loss then it is a mathematical impossibility to be profitable in the long run! Expectancy would be zero! Regarding your second question, Reward to Risk ratio (ROI as you call it) increases but always at the expense of success rate (you get a smaller probability of winning). There is no way to trade any plain vanilla option strategies and be a winner in the long run.
@frantisekhvila-realitnymak7422
@frantisekhvila-realitnymak7422 9 жыл бұрын
Thank you very much for your effort to make this great tutorial
@wheresmyhandle
@wheresmyhandle 6 жыл бұрын
Adam, do you have a predetermined “target” profit margin you look to achieve prior to executing a trade?
@raahi8581
@raahi8581 7 жыл бұрын
Thank you for input on the psychological aspect of successful trading towards the end of the video. That emphasis could be more important than anything else.
@Saad_TheGod
@Saad_TheGod 3 жыл бұрын
Great Vid!
@RedondoBeach2
@RedondoBeach2 7 жыл бұрын
Your videos are great. I appreciate that they're clear, easy to understand and designed with the beginner in mind. I do have a question about options but would prefer to email you. Is that possible?
@korgaonkar_deepak
@korgaonkar_deepak 6 жыл бұрын
Yes but Limit order may not get execute in fast trend moving
@WoutervanTiel
@WoutervanTiel 4 жыл бұрын
Really only #4 is true. The rest is the opposite of what you should be doing kiddo. Do not ever let your losses run. For real.
@RajeshSaini-kv8xk
@RajeshSaini-kv8xk 3 жыл бұрын
very very good video. 100 % true . Big Thank You
@jwpark1995
@jwpark1995 4 жыл бұрын
Thanks , My question is how far down on my premium should I before selling. Let's say my premium is down more than 50% is that a good time to take the loss, if I don't see any improvement?
@Rehvuhlation
@Rehvuhlation 4 жыл бұрын
Great video! What platform do you use to make your videos?
@seale500
@seale500 8 жыл бұрын
this sky view trading is one of the easy to understand , i have seen a lot of trading Videos tutorial this is one of the best , love it U have the gift
@skyviewtrading
@skyviewtrading 8 жыл бұрын
+donnie seale Thank you! We appreciate your kind words. Be sure to check out our website and sign up to receive 3 free video lessons (exclusive and not available on KZbin).
@lbwht9258
@lbwht9258 8 жыл бұрын
I did subscribe but never received your videos :-< Wish to follow your clever lessons but your site does not seem consistent this time.
@skyviewtrading
@skyviewtrading 8 жыл бұрын
Lb Wht Hmm strange. Send me an email at adam@skyviewtrading.com and I'll personally send you the video links!
@flean73
@flean73 7 жыл бұрын
same here. i subscribed but didn't get the free videos.
@brewmaster0507
@brewmaster0507 3 жыл бұрын
your videos are awesome. thank you
@hoangpham3477
@hoangpham3477 4 жыл бұрын
I think this only applies to option trading due to limited loss, without stop loss in margin trading, you risk losing your entire balance being liquidated
@lj4001
@lj4001 2 жыл бұрын
Correct, if u own the stock outright, u risk the stock going to Zero.. In an option’s trade if u r Buying/Selling Calls/Puts ITM will u risk that (u have to watch ur settled cash balance for sure) u can minimize that risk in margin accts with vertical spreads which r 2x the premium (Collateral taking wen u first enter the trade) U do want to Avoid Straddles/Strangles that show “unlimited loss” in calculations before entering the trade unless u have the settled funds to cover ur losses.
@arturtoth3185
@arturtoth3185 4 жыл бұрын
Excellent trading advice AND Glitch Mob? Perfect.
@yoespeculador
@yoespeculador 4 жыл бұрын
Really valuable advice
@yingtse315
@yingtse315 4 жыл бұрын
Should i sell my xpeng option call 55 exp 3/19? To cur loss? or wait?
@Netwrk
@Netwrk 4 жыл бұрын
Honestly thank you so much.
@soha.3616
@soha.3616 4 жыл бұрын
This is for selling options right?
@Heyitscristian
@Heyitscristian 4 ай бұрын
Thanks!
@aprilcherry8529
@aprilcherry8529 7 жыл бұрын
Hi, how to cut losses? I have sold a put and the stock dropped significantly! by closing the position I have to buy a call? right?
@spencermayaleh6610
@spencermayaleh6610 6 жыл бұрын
what platform do you trade on good sir?
@skyviewtrading
@skyviewtrading Жыл бұрын
Tastyworks and/or thinkorswim!
@piusottiger7902
@piusottiger7902 4 жыл бұрын
Very useful information
@tegerewany
@tegerewany 8 жыл бұрын
Thanks! This really helps me
@gavnonadoroge3092
@gavnonadoroge3092 4 жыл бұрын
2:40 when stock is dropping like a rock, its not breaking down, its gaining momentum
@provlic5732
@provlic5732 4 жыл бұрын
Underrated comment
@omgnoway1111
@omgnoway1111 5 жыл бұрын
great content, you're an excellent contributor.
@JGreen.
@JGreen. 7 жыл бұрын
Can you do the video on where to place the stop losse for options. I place the limit stop losse of 5% of the stock price movement by calculating stock price x delta to work out approx stop losse for the options. is this how you would be doing?
@khazaddim
@khazaddim 6 жыл бұрын
If you always hold and wait for the looser to rebound instead of cutting losses you ignore opportunity cost. Gold will come back to $1600... One day. In the mean time you could have taken the loss and bought Nvidia, for example. Holding and buying into weakness is just as emotional as cutting losses.
@irfan4506
@irfan4506 6 жыл бұрын
Selling premium requires a completely different mindset than trading the underlying. How someone trades gold or Nvidia is not necessarily how someone should approach a short premium strategy like this video is talking about.
@scottsmith4145
@scottsmith4145 3 жыл бұрын
@@irfan4506 No,,, the title says when to cut losses with options which implies options in general,,,not just selling premium,, if he meant a specific option strategy he should have made that very very clear in the title and throughout the video,, otherwise he is hurting traders with bad ideas!
@KnightWicked
@KnightWicked 5 жыл бұрын
How small should we trade
@armandolee4029
@armandolee4029 8 жыл бұрын
Mental Stop! That's a cool strategy. Thank you!
@skyviewtrading
@skyviewtrading 8 жыл бұрын
No, we are saying we don't like mental stops either! :)
@sweetguy19762
@sweetguy19762 9 жыл бұрын
Adam Thomas what time scale is best to trade?
@skyviewtrading
@skyviewtrading 9 жыл бұрын
+Owen Chase science channel If you are referring to the best chart time frame... well, I don't trade off of charts or anything like that... But if you are talking about what options expiration to trade in, research strongly suggests that trading around 30-60 days to expiration is where you get the best bang for your buck when selling premium.
@omarcruise7006
@omarcruise7006 4 жыл бұрын
How did you learn all this stuff ? You sound so young
@Exposedgaming
@Exposedgaming 8 жыл бұрын
Hey man, great information heres my question, if you dont believe in stop losses, How do you battle Theta trying to let your positions play out especially if you are playing monthly's etc.
@skyviewtrading
@skyviewtrading 8 жыл бұрын
TechTipzz we don't battle theta cause we don't buy options. We trade strategies that put time decay in our favor! Check out our two recent videos about Iron Condors and also the Vertical Spread videos. Hope that helps!
@xman9686
@xman9686 9 жыл бұрын
Very well said. Good for you.
@skyviewtrading
@skyviewtrading 9 жыл бұрын
+X Man Thanks!
@SithLordmatthew
@SithLordmatthew 6 жыл бұрын
I agree with the limit orders it's all I use. As for let things run long that's not my strategy I plan my exits before I ever buy. Then when my limit order hits the next time I am on I place my sell order for the price I expect to see. That works nice cause a lot of the time my price is only touched briefly and if you sold then you made out and if you didn't then you screwed yourself. When I decide to dump a position its because something has changed and it is no longer a viable plan. Last year I was heavy in to some of the biggest iron mine companies. Reason Trump = tax cuts = booming economy = high demand in building materials. This Proved correct and I was very please with the results. This past winter he decided to start tariffs as part of re do trade deals. That was the cue to get out the sector was no longer safe if you did you made out if you stayed your now in limbo in a loss.
@qbano55
@qbano55 5 жыл бұрын
Great series! My question is, one position size. I have account over 500k. I primarily trade verticals of 10 to 20 contracts. Would that be considered too large? I’ve noticed when I trade 5 to 10 contracts on spreads I don’t freak out as much if the trade moves against me. Thanks in advance.
@scottsmith4145
@scottsmith4145 3 жыл бұрын
You are trading with half a million dollar account and you are asking that question omg...really? Ummm,,, my best advice is spend at least a half year learning options first and paper trading,, then start trading with only a quarter of that size account and no more. You dont want to lose a lot while still learning in the real world.
@MotivasiSukses-Ikigai
@MotivasiSukses-Ikigai 3 жыл бұрын
exactly what I'm thinking
@zipliN19
@zipliN19 9 жыл бұрын
Hey Adam i have a very Important question im 19 years old and im still in education (First year) i work 10 hours per day in the shop of my uncle.. i hate it i earn like 500€ per month.. thats nothing in germany (unemployed People get 450€ + fully payed rent).. back to my question i trade since 3 months i made a lot of experiments and got rid of my emotions while trading.. since i watched your videos i dont have any losts and i earn like 50€ per day should i quit my education and begin focus on trading? please answer youre my hero sorry for my english
@skyviewtrading
@skyviewtrading 9 жыл бұрын
+zipliN19 Thanks for the nice comment! I'm glad the videos have been of value to you! I can't recommend you to quit your education. That would be totally your decision and I encourage you to really think through any decision that big :) In the meantime, keep doing what you're doing and keep making money trading!
@jonathanrecord8125
@jonathanrecord8125 8 жыл бұрын
i'm curious to know is it possible to consistently make $50 a day in options trading?
@skyviewtrading
@skyviewtrading 8 жыл бұрын
+Jonathan Record average $50 per day? absolutely!
@TheBibleListener
@TheBibleListener 8 жыл бұрын
how old are you? and where did you learn all of this from?!
@SuperElite27000000
@SuperElite27000000 8 жыл бұрын
He sounds young but trust me his strategy works, I had to learn it the hard way but as long as you dont get too greedy and don't get freaked over a losing position you'll nail it almost every time in the long run. And don't stare at the screen, set up your take profit at 5-10% and just wait until it hits, it will if you are PATIENT and don't THINK about it after you have taken your position. Best of luck in the markets my friend!
@michaelreyes203
@michaelreyes203 8 жыл бұрын
I currently earn over 200 dollars/day trading options online. If you are interested in learning my techniques send me an email here for a free consultation: toshtao@gmail. com
@mehrshadvr4
@mehrshadvr4 6 жыл бұрын
he sells option position for a long run so even if the option goes against you for a short time, it'll lose value over time as long as you are not in the money.
@WJTM88
@WJTM88 5 жыл бұрын
Michael Reyes toshtao@gmail.com Are you still trading options
@walterhunter3353
@walterhunter3353 4 жыл бұрын
This video just save me a lot of money on a losing position. I am glad I didn’t put in a stop loss order. I will just stay with the position until the turn around
@randytrashcan
@randytrashcan 6 жыл бұрын
Boy, do I fucking hate the PDT. So many times I've thought, "Hey, I'm up 25% on my position" but then hold out because I don't want to "waste" a day trade when there still appears to be momentum, and then I'll end up losing twice that the following day.
@ryannoe86
@ryannoe86 8 жыл бұрын
This is a great video! More traders should watch this.
@skyviewtrading
@skyviewtrading 8 жыл бұрын
Thanks!
@samuelessim9992
@samuelessim9992 6 жыл бұрын
Please what do you mean by "be aggressive with your profits?
@randytrashcan
@randytrashcan 6 жыл бұрын
Basically this: You can't go broke by earning money. Don't test your luck. Take profits earlier rather than later, because you're never going to time your trade perfectly. I mean, you inevitably will a handful of times, but the majority of the time, take the money and run.
@AnangryLibertarian
@AnangryLibertarian 2 жыл бұрын
This actually makes sense. But man a few red days would hurt lol
@NoWayFolding
@NoWayFolding 8 жыл бұрын
@Sky View Trading Is it really 50/50 though at strike? Thats if you assume a bell curve of equal distribution and not an asymettric curve, and what makes your think it is equal distribution
@skyviewtrading
@skyviewtrading 8 жыл бұрын
Black-Scholes, the option pricing formula that has won a Nobel Prize and has been the standard for option pricing for decades suggests that it is 50/50 (or at least close. It's more like 51/49 due to the slight upward drift from the risk-free rate of return). Is it really 50/50? We believe so. We've done a lot of research on this. But that's beside the point because if it weren't 50/50, then why haven't we changed the Black-Scholes formula yet? And by the way, we do believe the curve is somewhat asymmetric because of the nature of volatility and past market crashes. But this is, of course, priced into the options as put options on the indexes are much more expensive than the call options. BUT direction, whether up or down, is a coin flip.
@royslapped4463
@royslapped4463 3 жыл бұрын
I'd rather risk money in the market rather then gambling. A 50/50 chance of losing or wining is way better then a casino. Yes bad investments can result in 75%+ risk of being out of the money but with a good strategy you can make money off people betting badly. Theres tons of factors to look at but its better knowing and taking good bets hoping a person yoloed in a bad investment and you get all their money lol
@projekt2948
@projekt2948 5 жыл бұрын
Hey great video! Where can I find a probability list/chart like the one pictured at 2:58
@teokiatuan2
@teokiatuan2 4 жыл бұрын
I wonder why this video didn't cover the fact that holding on to a position, we benefit from theta decay with time
@danielwymer
@danielwymer 6 жыл бұрын
me too never put a stop loss! only limit take profits
@mitchellmigala4107
@mitchellmigala4107 5 жыл бұрын
Now this I could get into... Logic!
@SameerLatif
@SameerLatif 7 жыл бұрын
If you were bullish and stock fell a big 10%, it is a confirmation you were wrong at the first place... you should have escaped out of it long time ago...
@InvestitudinalKnowledge
@InvestitudinalKnowledge 6 жыл бұрын
not when it drops 10% in extended hours trading, lol.
@garym6206
@garym6206 5 жыл бұрын
You need them if you're trading on margin tho
@jstacy5156
@jstacy5156 7 жыл бұрын
just watched the video, you do know you must cut losses and let winners run to make money with spreads.
@skyviewtrading
@skyviewtrading 7 жыл бұрын
Actually the exact opposite.
@jstacy5156
@jstacy5156 7 жыл бұрын
So let me understand, if i have a spread, 80% POP and max profit of 15 and max loss of 85. So during trade it will touch 20% x 2 or 40%. There we agree. If touches you feel we should not cut losses. Ok, there we disagree. So half of those touches end up with a loss of 85, just so you can capture the 15 possible return. Run the numbers and you will see it is a poor approach to trading spreads. LET WINNERS RUN, CUT LOSSES
@skyviewtrading
@skyviewtrading 7 жыл бұрын
No, that is not correct. At the time the stock touches, your risk reward from THAT point is not 85 to 15. You aren't factoring in current P/L, and you have to factor that in for it to make any sense.
@JR-Canada
@JR-Canada 4 жыл бұрын
Let's see this guys trading account with all positions?
@dice-city1386
@dice-city1386 7 жыл бұрын
Hi, great job, what do u used to made this video, what program?
@JDdollars
@JDdollars 11 ай бұрын
Bro u r awesome af
@skyviewtrading
@skyviewtrading 11 ай бұрын
Thank you!
@tringheory8699
@tringheory8699 9 жыл бұрын
Tasty Trader! Solid
@jaker805
@jaker805 8 жыл бұрын
accidentally passes gas when zooming in at 3:32
@skyviewtrading
@skyviewtrading 8 жыл бұрын
hahaha
@flex2000i
@flex2000i 8 жыл бұрын
message not messenger
@CyrillicTM
@CyrillicTM 8 жыл бұрын
2:30, Yeah ofcourse, the lower the price, the better. Too bad for you i wouldve been better off using a stoploss. How? Well i get taken out at 50 with a stoploss, price goes to 45, market looks good, fits my criteria, i go long. As the trade progresses, we both make money as it goes long, except im 5$ ahead of you all the time, since you entered higher than me.
@skyviewtrading
@skyviewtrading 8 жыл бұрын
Oh, so you enter the trade at 50 and then you stop out at 50??? Then you re-enter lower?? You seem overly confident since all you want to do is keep arguing. Is there a reason you are so confident? Do you do this for a living? Have you made money trading (consistently)? Or are you just repeating what some "guru" online said? Please open your mind. You are ignoring the math. And the numbers never lie.
@CyrillicTM
@CyrillicTM 8 жыл бұрын
Im not ignoring the math, thats what you are doing. Yes im a fulltime trader for myself, been for the last 2 years, nothing TOO major in returns, but about 5-10% a month on average trading forex. No, not enter at 50 and exit at 50. Use the same example, say we went long on 60. Once price hits 50, there is much support, and in general not an edge anymore. Thats where my stoploss is, where as you keep holding. Say price goes to 45 then, i re-enter as the market is overextended, yadda yadda yadda, good confluence to enter etc. Youre currently minus 15, while i just lost 10 (Cutting losses short). But at the same time, we both reap the same benefits of the way up, except you had a bigger ''loss''. How can you argue with that?
@skyviewtrading
@skyviewtrading 8 жыл бұрын
You say you make 5-10% return trading forex??? And then you say that's "nothing too major"? Dude.. come on. You have not made 5-10% PER MONTH on average for the last 2 years... Don't lie to us and don't lie to yourself. If you're going to make a claim that crazy, then you're going to have to prove it. How can I argue that? Well for one, I'm done arguing with you cause it isn't going anywhere anyways. But I'll answer this... The only way what you said would work is if you can somehow know that the price will go from 50 to 45... Because if you stop out at 50, then it barely dips down to 49.80, then rockets higher... then you missed out on a great trade and I made an awesome profit... So you CANNOT say that you stopping out allowed you to reap the same reward as me. And please don't tell me you would have entered when it crossed back over 50... And you know what? I wouldn't even say cutting losses small and letting winners run is a BAD strategy for forex. Definitely not a good one but I also wouldn't say it's bad. The numbers will work themselves out anyways... But for the 5th time, we are talking about HIGH PROBABILITY OPTION STRATEGIES. Where we don't really care about the underlying direction that much.
@CyrillicTM
@CyrillicTM 8 жыл бұрын
I dont know why you question 5-10% a month as extraordinary? Its with leverage, 1% of capital risked per trade. and a 60% strikerate ish ish. A couple 1:1 and and a couple 1:3 or 1:5 trades, its done, when i have a set 1% maximum loss, its easy, because i limit my downside, and maximise my upside, thats my entire point, i do it, my mentors do it, and the people i trade with do it(Forex that is)
@skyviewtrading
@skyviewtrading 8 жыл бұрын
Then prove it please.. Because I don't believe you. 5-10% per month means you've averaged 60-120% annual returns each year for the last 2 years. I understand you are using leverage. But if you're using that much leverage then you're going to get wiped out pretty quick. But then you say you risk just 1% of your account on each trade? The numbers aren't adding up so really, proof would be the best thing at this point rather than another argument.
@rob_dyy
@rob_dyy 4 жыл бұрын
Woo...math, I love math
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