Quoted "Perception makes a trader. Deception breaks a trader. More Books on Trading Subscribe for updates Remember this site! View my complete profile. WeiPing is back from his Chicago trip and hopefully we can get him to reveal some secrets of the trading floor. Subscribe for updates Remember this site! Enter your email address: Sponsors UK payday loans is for those who may be looking for extra money before their next paycheque.
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Better trades products will guide you to make better decisions in your trading. Simply Options Trader Location: Singapore View my complete profile. As part of his winning prize, he will be flying to U. S to visit the three Exchanges in Chicago. How did you get started on options trading? I got to know about options as a hedging tool during my university days way back in However, it was not until recent years that I started to look at it more seriously as a tool to trade for living.
Thus, through attending options course which provided hands on exposure and doing extensive self studies, I believe I have equipped myself with ample knowledge to pursue my dream towards financial freedom through options trading. I always feel that we should take charge of our own financial life instead of waiting for the single paycheck at the end of the month. However, at this moment, I'm still looking for every possible way to upgrade my skills in order to bring my trading experience to another level up.
Describe your style of trading. How long do you typically hold positions? Do you buy front month options or options with more time value? I consider my trading style as cautious as money management come on top of everything else. I plan my trade before placing a trade and I will trade according to my plan earlier. I normally do not hold my positions for more than 3 days to avoid theta decay.
Most of the people have overlooked this by applying the stock investing principle in options trading which they are constantly hit by time decay without even knowing it.
My unique trading strategies give me the flexibility to switch between front month and longer term options to capitalize on the opportunities available that would maximize my risk to reward ratio.
What are your favourite stocks for trading? I personally like volatile stocks such as those from the energy as well as technology sectors. However, I do not restrict myself to other opportunities available as long as it fits my trading criteria. How do you determine entry? My trading alert is mainly based on historical patterns, chart analysis and news. Any indication or confirmation of these would possibly trigger an entry signal.
What's your exit strategy for winning and losing trades? My exit strategy is simple. As I mentioned previously, I go into every trade with a trading plan that would predetermine my targeted profit and stop loss.
So, whenever my profit target is reached, I would take profit by closing up my position. On the other hand, I would cut loss ruthlessly if my stop loss level is triggered. What technical indicators do you use? However, most of the time I would use the combination of MACD and Slow Stochastic to determine appropriate entry level and I personally think that they are the best combination that I have come across.
What single lesson did you learn along the way that has helped you the most in your trading? I attribute my success to proper money management and I'm glad to learn about the importance of it earlier rather than later. What I have noticed along my trading journey is that newbies tend to succumb to the challenge of greed and given up their dreams thereafter. What I'm attempting to say is if you trade without proper money management, it's like you go to the battle field unprotected.
Remember, money management always comes first. Tell us about 3 books you would recommend to traders to read WeiPing: Give some advice to traders who have just started out WeiPing: Always paper trade for at least half a year to get used to the strategies you are using. Make all the kind of mistakes you could possibly make and learn from it before risking your hard earned money. Do treat the paper trading seriously as it's a true reflection on your personality.
What do you like best about trading? Options trading is the kind of tool that could give us the maximum leverage with minimal capital outlay. It best suits the beginners who would like to enhance their trading skills with minimum risk which could possibly generating maximum profit. Besides that, no instruments other than trading can give you the privilege to convert information into cash in the fastest way.
Yeah, I'm really looking forward to this trip and I hope to share my experience with you by the time I come back.More...