Go to Jeff Salisbury LWGate Home Page.From: "David Taggart" <dctag@mavericktrading.com>
Subject: RE: [CANSLIM] Options
Date: Tue, 29 Jul 2003 21:38:24 -0600
Previous Article (by Subject): Re: [CANSLIM] HITK -- member observation "DMC197807"
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Hello, Options can be a wonderfully useful tool. The key word is "can." Most people that trade options don't have a clue as to what they are doing. As a broker I see a lot of people trade them and most are net losers. Why? Because they don't have a clue as to how they really work and trade. If you want to use CANSLIM and trade options I would recommend you first become proficient trading stocks then start slowly trading some options. Many people just assume that options are essentially leveraged stock and you get more bang for the buck. That is of course true if you are right but is the reverse when you are wrong. Regular risk management changes considerably when trading options as the price tends to change a lot more and a lot faster then a regular stock. I have ranted enough but my main advice is before you trade options read and watch them a lot before actually trading them and then when you finally trade them trade small until you are very proficient. Some good books are Options as a Strategic Investment -Lawrence Mcmillan The Options Course -Fontanills Option Volatility and Pricing -Natenburg I have read all three and they helped a lot. The next step would be to paper trade for a while to get a feel for how fast the moves are and how far out you want the strike prices. Then of course you have to actually put some money on the line to really understand how they trade. But definitely put in the homework. Happy Trading, David Taggart - -----Original Message----- From: owner-canslim@lists.xmission.com [mailto:owner-canslim@lists.xmission.com] On Behalf Of david rossing Sent: Saturday, May 24, 2003 9:27 AM To: canslim@lists.xmission.com Subject: [CANSLIM] Options I was wondering, does anyone here use options when they are doing CANSLIM? I don't know a lot about options, so I am trying to figure out if they are useful here, and could help set stop loss limits, though not necessarily at an 8% price drop. Thanks Dave __________________________________ Do you Yahoo!? The New Yahoo! Search - Faster. Easier. Bingo. http://search.yahoo.com - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email. - - - -To subscribe/unsubscribe, email "majordomo@xmission.com" - -In the email body, write "subscribe canslim" or - -"unsubscribe canslim". Do not use quotes in your email.
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