| Anna's Trading Rules |
| Written by Anna |
| Monday, 07 November 2011 10:24 |
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1. Don't open a new trade before 10am EST (let the market tell you direction)
2. Best trading days on Tuesday Wednesday and Thursday
3. Don't hold huge positions over the weekend
4. Always have your exits ready before you put on trade both limit or
stops! A plan where to exit both on the up or down
5. When trading options always check the implied volatility anything over
35% I choose to do a spread (neutralizes IV to a degree) or wait for the IV to
come down
6 Never trade (buy) straight calls or puts before a big earnings report
especially on high flyers IE. NFLX GOOG AAPL BIDU (you will get a huge IV
crush)
7 Remember to sell high IV and buy low (as in trading stocks)
8. Check the skew on the options before placing a trade
9 Long options time (THETA) is your enemy
10 Short options or credit spreads time or THETA is your friend
11. NEVER EVER trade off news or some rumor (you'll get your head handed to
you)
12. Use technical analysis it's not 100% but the best clues for your
trade
13. If you trade stock make sure you have checked the liquidity and its at
least for me 500,000 daily
14. When trading options, the tighter the spread the better entry exit
(never trade a bid/ask wider than 10cents (slippage) in some case will kill your
trade
15. Never trade long options for a swing trade with less than 30 days (TIME
DECAY IE; THETA)
16. Never trade spreads with more than 45 days, you'll be twiddling your
thumbs (I use 2 to 3 weeks so the delta can work on my side
17. Never trade Butterflies with more than 2 weeks (same thing too much
time again to work against you)
18. When trading options always check the open interest I must have a
minimum of 200
19. Don't trade from emotion it will kill you
20 Finally don't trade while drinking, sick or under stress (You'll make
mistakes)
God speed love Anna
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