[marketgod]

From your description, the term you are looking for is swing traders.

Yes, I swing trade options. All technical analysis.

Only stocks. Pure technical analysis. Main items we focus on are price-action and price-volume. In essence, for every minute the price goes up, what's the volume? For every penny the stock goes up, what's the volume? For every 100,000 shares what's the change in price?200k? 300k? 1m? and so on. Also, weighted factors for all the different indicators, MA/SMA/CCI/RSI/VWAP being of most pertinence. Pitch fork trends weighted at a lower level. Also several other proprietary indicators based on stock correlation (i.e. BABA vs AMZN, if AMZN is moving down, BABA should as well because of what it relies on).

I have been getting killed the last month but still up over 100%. Just hit on GS (100%+), and likely will on TSLA. Also did 1500% on TSLA this year on a trade which was my biggest so that helps.

TSLA seems ready for a similar move to when I made my last huge run.

[aparsons]

Is there a reason why a lot of people prefer to swing trade options rather than stocks?

I understand the upside can be greater, but so is the risk. Is there something I’m missing?

Is there a risk level beyond which options make more sense?

[marketgod]

I think there is less risk. Especially with my strategy. Also you get 100x leverage. So I will give you a sample trade from today.

I bought Dec04 $600 Calls for $900 each at 9:55 am. At 1:25 I sold for $1820. So $1000 would be $2000. Now to make $1,000 in shares it would require ($1000/($25)) so I would need 40 shares (40*$550) = $22,000 risk.

Now I only buy calls or puts so my upside is always unlimited but downside is limited to the initial order.

Swing trading stocks is really hard because you have to sleep on $22,000 overnight. You can wake up with nothing in a black swan event. With options the most I will get hit on is $50-$100,000 which I have in the market at once. The rest is ready in the savings account in cash or etfs/TSLA stock.

I think options are the safest bet. Everyone starting out should look into the wheel strategy as it's basically free money for shareholders.

[icedchai]

Do you do anything with longer term options? How far do you go out?

[marketgod]

30-45 days max. The Teslas/Amazons I do weekly/two weeks as I am looking for trends in my calculations.

I have some LEAPS on AAPL as a test but really it's because I didn't want to hold shares any longer and it was a good bet as AAPL pulled back hard.

[giantg2]

I like LEAPS (1-2 years). I try to pick companies that I believe in so that I xannhold them longer if I want. For example, MSFT and DIS.

[aparsons]

With puts your upside is limited right?

[marketgod]

It is but not that much. It's limited to how far the stock falls. So if you buy a $500 contract when the share price is $95 you can still make $9500. If you had sold puts/calls then your profit is limited to the first sale you made.

[minhazm423]

why do people discourage technical analysis and liken it to astrology?

[marketgod]

I'm not an expert on astrology, but I see many cultures believe in it. Maybe there is a method to their madness that we don't understand now that you mention it.

I know for TA, you have to look at the patterns and they are visible in the data. The people who are against are the ones who can't figure it out.