Question:
I have a general question for you. I am currently a student of Investools. I addition to trading various stocks options, I also want to focus on short term trades on the OEX and SPX (about 1-5 day period per trade). Do you think that the timing system you use could be used in this arena especially the OEX? Do you think we could come up with various indicators to fine tune the entry and exits for this index using your site?
A little about whom I am so you know who you are emailing. I am a pediatrician by training but currently at home raising my children. I was introduced to trading about a year ago. Until then I was financially illiterate, as many doctors are. I am a very quick learner and have accumulated so much knowledge this year that sometimes it astounds me how much life has changed.. I have three passions, and they are what I am wholly committed to. These are my family, trading and eventually making a real positive change in this world. Not only do I love to trade but also I see this as a means to give me the financial freedom to help a lot of people around the world and here who were in similar and worse situations that I have been in.
I could totally relate to your introduction to the web site and will whole-heartedly join again. Please let me know what you think about the OEX. I know the warnings about options trading out there but I also know that anything is possible with the willingness to do whatever it takes.
My Response:
Member Response:
I look forward to a very long and prosperous journey together. I think one of the key ingredients for success is surrounding oneself with quality people. I am glad to have you on this path.
Investools is an expensive course. However over the last 10 months I have learned and grown more then the monetary commitment I made. Yes, options comes with many risks and rewards. The key here is to immerse in the study. I usually get up around 4-5 am and read and study before the markets open and during the day. Once my children and husband are asleep I spend another 3 hours or so learning. I have paper traded and continue to do so. However, as you said the real challenge of a great trader is to be able to conquer oneself. I think that is harder to do in the paper account as you can always press the reset button. I have and continue to trade real money with the up most confidence that with time and effort we can arrive at a system that fits my personality and is profitable. When I first started trading, the first two months I had about a 20% return a month. However, after the May 10 Bernake meeting, the markets have been a lot harder to decipher and I have lost significantly. I am however not daunted although I must admit there were several of those “What in the world am I doing” moments”.
As far as the experience at Investools, it has really been incredible. Although I must say you get out only what you put in. I also find that in the world of trading as in medicine there seems to be a degree of competition between traders that results in a lack of “full disclosure” about techniques. I love technical trading and am in the process of reviewing the various indicators i.e. MACD/ Stochastics, moving averages and such to see which combination works best to give reliable signals for the indexes especially the OEX and SPX. You know, perhaps part of the love is that technical trading is so intellectually stimulating and challenging.
I will look carefully at your recommendations. I still shake my head at amazement that you would take the time to be so through with someone you don’t really know yet. The ideas of support and resistance, breakouts with volume, support bounce trades and price pattern recognition and candlestick formations are only some of the things I am learning. When I look at the charts you present there seems to be a lot of similarities what you are looking for to enter a trade. I would love to discuss these with you as the journey proceeds.