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STRATEGIES || Knowledge Base workshops – 7/25/23

Remember the first time you learned about stocks…
“What? I can own McDonalds? Can I get free fries?”
You learned a stock moves based on its earnings .
Then you learned it was its earnings outlook.
Then you learned it was how believable/believed an outlook
 
These are situations, and acting on them requires different strategies and styles.
 
Remember the first time you learned about shorting…
“What? I can make money when the stock goes down?”
Then you learned that a short’s risk is different than a long.
Then you learned don’t stay short too long, especially MCD!
 
Another situation. Calling for another strategy, for another trading style
 
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Incidental terms to understand for this discussion:
– your Trading Style
– your Trading Plan
– tactics
– Risk:Reward
 
Different situations call for different strategies.
Buy MCD because you want free fries.
Short MCD because they’re giving away free fries.
(Or, you were mad that they wouldn’t.)
 
Other situations that are likelier to be encountered more often can be:
Economic opinion – ahead of econ reports
Product mechanics – rollover choppiness
Time of day – e.g. trusting/doubting an Opening Thrust
Environments – choppy vs trending
Account size
Personal focus
Indecisiveness
Setup e.g. Fri PM Drift
 
Different strategies include:
All-or-none (stab-stab)
(A word about 1-lots: “against”)
Trading around / Position trading
Laddering 
Scalping (hit & quit)(2-point strategy)
Scattershot (micro to macro)
Staggered entry*
 
*Staggered entry strategy, not explored in this workshop:
define a full position, i.e. X total contracts
divide into 1/2, 1/3, or 1/4 (tranches)
1st tranche is immediately upon signal
2nd tranche is 3 minutes later (price permitting)
3rd tranche is another 3 minutes later (price permitting)
cost basis is averaged, common reax is exploited thx to discipline
 
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Not explored in this workshop:
MANAGEMENT i.e. tactics – 
re-entering… “stab-stab”
“trading around”
PRACTICE still doesn’t make one perfect
a word about 1-lots: don’t

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Futures and options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to buy/sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed herein. The past performance of any trading system or methodology is not necessarily indicative of future results. The information herein is being made available as a learning aid only and should not be used to invest real money. If you decide to invest real money, all trading decisions should be your own. Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown. By continuing to view this site’s content, whether as a guest or as a paying subscriber, you acknowledge personal and professional responsibility for any application thereof. You also accept that this site: viditrade, IF THEN LLC, and Rod David; are not responsible for the accuracy or timeliness of pricing information that may be seen incidentally with annotations and opinion that are unique creations of this site. Visitors that engage with this site for any purpose other than to consider and potentially to subscribe to its services shall announce their intent via any convenient contact method that is available on the site.