Books on options trading - recomendations?

[Muthukali]

Heard that futures is risky and that ETFs is a safer area?

My project is to learn about options & ETFs. Then I can better decide which playground to go to:o
I'm currently heavily invested in stocks. My intention is to diversify & protect my principal. I'll be happy to generate a few thousand/ month of pocket money. Can do so now if I buy dividen yielding stocks like Microsoft, Johnson & Johnson,....

Yes, futures are risky. And u must know when to execute STOP order.

 

[johnny333]

There are many strategies and you dont need or even know how to to use all. Usual ones like call, put, straddle and strangle and at most a collar will be good enough for most situations. These are strategies for a uptrending, downtrending and sideways moving market. Things like condors, iron condors etc will not be really necessary, as they are for really kiasu trades, and in the end, you will not make much.

In today's market you can have a large swings in one day

I don't know what "iron condor" is but if it'll help avoid losing money, I'm willing to become a "kiasu" trader :o

 

[johnny333]

Yes, futures are risky. And u must know when to execute STOP order.

I've blown a few forex accounts because I didn't use STOPs.:(

That's why I've finally concluded forex is not for me

 

[tua lam pah]

the golden rule of trading....
if you have $100,000 and wish to make 1000 a month, that could be achieved with a bit of discipline and research
if you have $100,000 and wish to make $100,000 a month, you will probably lose your $100,000

 

[tua lam pah]

in fact currency trading is one of the most conservative scalping instruments,
percentage wise it moves much slowly than stocks
and also a country's fundamentals are quite transparent unlike stocks, look at AIG, fucking triple A, and their treasury went on a gambling spree and no one is wiser,
the dealers take their bonuses and disappear.....
currency trading gets a bad name because players usually get carried away and trade bigger and bigger amounts, incurring hugh losses sometimes.

 

[Unrepented]

I also dont trust the so called "financial advisors". But imo, you can learn the basics from a CFA course as I was told. At least you get to know the whole scope. Just choose the part about options from the course. Its like kungfu, you learn the basics, then gotta spar, get some bloody nose, to get better lor.:o

No offense but with the local gurus offering these courses, one can't be sure if he/she isn't a mini bond salesman As someone pointed out why would someone successful be teaching(in Spore)?

 

[johnny333]

in fact currency trading is one of the most conservative scalping instruments,
percentage wise it moves much slowly than stocks
and also a country's fundamentals are quite transparent unlike stocks, look at AIG, fucking triple A, and their treasury went on a gambling spree and no one is wiser,

Have you tried forex? Within a few minutes a currency can move 100+ pips. With the high margins being used you can gain/lose thousands I remember how I almost doubled my account within a week

With shares at least you still own the shares. Quite often the prices will recover if you hold long enough. However since the recent financial crisis the rules don't work anymore :(

Alot of funny things are going on behind the scenes. People suspect many of the bucket shops are using dealing desks behind the scenes as well as trading against their clients.

 

[Muthukali]

Have you tried forex? Within a few minutes a currency can move 100+ pips. With the high margins being used you can gain/lose thousands I remember how I almost doubled my account within a week

With shares at least you still own the shares. Quite often the prices will recover if you hold long enough. However since the recent financial crisis the rules don't work anymore :(

u meant during NFPR, BOE, ECB, FOMC nites? Spot FX or currency futures?

 

[tua lam pah]

i have been trading forex for mostly european and US banks since 1984
now with age catching up (slower reflexes), i am in treasury sales in a big bank instead

currency pairs usually moves 100-200 pips per 24 hours, if you are trading on 2-3 pips spread you should be able to make some pocket money, i guess your positions are too big for your liking...thats why your profit n loss is great......you can trade smaller amounts,

some shares never ever comes back...
lets say your share 3 years ago when u bought it is $1 and it dropped to 20 cents, so u keep it...
3 years later it goes back to $1...... so you think you break even?
wrong..... you $1 three years back is worth probably $2 with inflation......

hope it helps

 

[tua lam pah]

usually those traders who cant make it will branch out into doing sales and 'financial analyst'
writing about what happenED in the mkt last night...blah blah blah
some of the more higher paper qualified ones will give 'seminars' hehe no joke true

the top earners (those who are either lucky or can read the mkt well) will trade and earn their money quietly

 

[johnny333]

u meant during NFPR, BOE, ECB, FOMC nites? Spot FX or currency futures?

Spot forex.

The moves happen when the European markets open.

 

[Muthukali]

i have been trading forex for mostly european and US banks since 1984
now with age catching up (slower reflexes), i am in treasury sales in a big bank instead

currency pairs usually moves 100-200 pips per 24 hours, if you are trading on 2-3 pips spread you should be able to make some pocket money, i guess your positions are too big for your liking...thats why your profit n loss is great......you can trade smaller amounts,

some shares never ever comes back...
lets say your share 3 years ago when u bought it is $1 and it dropped to 20 cents, so u keep it...
3 years later it goes back to $1...... so you think you break even?
wrong..... you $1 three years back is worth probably $2 with inflation......

hope it helps

thats where the big bucks is...... other than the pit.

 

[johnny333]

i have been trading forex for mostly european and US banks since 1984
now with age catching up (slower reflexes), i am in treasury sales in a big bank instead

Are you Nicholas Tan, the author of many local forex books

If you need some pocket money you can always give forex tution. I'm sure many would be willing topay for your experience

 

[johnny333]

the top earners (those who are either lucky or can read the mkt well) will trade and earn their money quietly

If anyone out there fits this description give me a PM

 

[tua lam pah]

Are you Nicholas Tan, the author of many local forex books

If you need some pocket money you can always give forex tution. I'm sure many would be willing topay for your experience

who the hell is nickolas tan?

i am in my 50s,probably retiring in a couple of years once i pass my experience to the younger ones.. dont dare to say i am a good trader
usually a forex trader will survive if out of 10 trades he makes money on 7, if u dont make money for 2 or 3 months u lose your job

the market(big boys) comes up with new tricks every few months so there is no way u can outguess the them...
so best is hit and run, if you are short term trader like me

everyday, before london market comes in, observe, asian mkt usually does nothing because the far east usually got no idea what to do (most financial news comes out at night anyway)
london will come in if they decide to buy....just follow them for 10-20 pts and get out
i have been doing it for years and its quite a good stradegy for scaplers...
of course i cant tell you all my experiences here...the 911, tian ann men, affairs... which moved mkts tremendously, even seasoned traders panic

i am thankful the currency mkt helped me bring up my kids, they are in their 20s now.....

 

[Spiky]

There are many former bank forex dealers and money brokers in this forum. Do you know why ?

From the sammyboy sex forum, they come over here.

Most bank dealers and money brokers chiong rub shops, KTVs joints etc. During those days, no hang flowers nonsense yet.
Sammyboy sex forum is a great source of info of where to chiong.
Of course, when dealers go out with money brokers, money brokers will foot the bill.

Those were the good old days.

 

[Muthukali]

There are many former bank forex dealers and money brokers in this forum. Do you know why ?

From the sammyboy sex forum, they come over here.

Most bank dealers and money brokers chiong rub shops, KTVs joints etc. During those days, no hang flowers nonsense yet.
Sammyboy sex forum is a great source of info of where to chiong.
Of course, when dealers go out with money brokers, money brokers will foot the bill.

Those were the good old days.

yours or mine? hand signal?

 

[tua lam pah]

haha u broker is it???
then i probably know you...heh

 

[Spiky]

haha u broker is it???
then i probably know you...heh

I was selling kopi/tea and roti/kaya at Golden Shoe Carpark Hawker Centre.

 

[Forvendet]

in fact currency trading is one of the most conservative scalping instruments,
percentage wise it moves much slowly than stocks

Nominally yes, but several folds stock risks after leverage.

currency trading gets a bad name because players usually get carried away and trade bigger and bigger amounts, incurring hugh losses sometimes.

Yes, people got carried away.