Hi everybody,
I was hoping to get some more information on Market Auction Theory after reading this thread: Learning for help learning how to day trade. Could you provide me some info on it's pragmatic use, or point me towards a book or website that could provide more information?
Secondly, I wanted to reach out for some advice on setting stop-losses on option trades. I've been circumventing PTD restrictions by day-trading SPY options in a cash account. I contrary trade the price as it strikes Pivot Points, supports, and resistance levels (buying a 5 puts at resistance or a 5 calls at support.) About 75% of the time the trend reverses and I make money. However, I've been terrible at cutting losses and the few mistakes I've made have lost me more money than all of my accumulated gains. Much of this is due to breaking my 5 contract rule and doubling down when the market turns against me. Because derivatives follow their own price structure it's more difficult for me to know where to set stops without them being accidentally tripped. Do you have any advice?
Submitted May 04, 2014 at 03:55PM by Banjogood http://ift.tt/1ngWoVe
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