The great convenience of using options instead of Fib or miniFIB (at least in their normal version, if no other protection not self-defeating "stop loss") as we have already discussed - at least in broad outline - in theory, but next Monday I'll show you how to carry out the implementation.
Of course, I will encourage those who enroll in my "Practical Course" for the weekly option, but certainly not mean neglecting the normal users of this blog.
In practice, the members will send (via e-mail at night) the pattern of orders to be entered "before" the opening of the market at all, however, will - on this page - the report of operations carried out only "after" closure.
In any case the explanations and comments will remain valid for anyone who wants to learn how to handle ease with these valuable tools for intelligent speculation. For those who wished
freely in turning my operational suggestions I do not tire of repeating some important caveats:
1) My current model is based on a hypothetical capital of $ 10,000, distributed in "tranches" of $ 1,000 per week, equivalent also to the "maximum loss" (rather theoretical: the effect is usually more limited) mathematically possible;
2) Some weeks (and in particular those which fall into the "technical maturity", ie the closing months of the Stock Exchange) are much more speculative and, at the same time, more risky (always within the limits possible loss), others - such as the next - are much more quiet in the sense that the hypothesis of "maximum loss" is actually a large and excessive (but since I like to refer, when possible, not assumptions but to the mathematical certainty, I consider it anyway);
3) The system is designed so as to make it applicable even by those who have a challenging job during the day and then you can place orders just before starting the workday: This raises obviously operating limits, but the aim is also to teach you how to work well even in the toughest conditions, which however should not compromise almost never the success of the strategy;
4) The weekly invitation to use only 10% of available capital (in this case $ 1,000 on the hypothetical 10,000) is based on the fundamental difference that exists between the derivatives and equities, as well as the correct management of the famous "leverage effect": the purchase of an option to obtain unlimited earnings potential (up to 100% of 1000% and more in no time), but it certainly raises the risk of loss in percentage rates (although in no case more than 100%, that is the pure cost of the option itself), so it would be very risky and not very scientific exhibit at the risk, even if they advance, a substantial part of the capital;
5) The policy principles for assessing the goodness of the system should never be the "frequency" of earnings, but their "consistency" and, especially, the relative comparison between gains and losses, then it is clear that the purpose of my "Practical Courses" is not to "earn more", but to get that sopravanzino gains over time - possibly in a resounding - losses, ie the "net profit".
no coincidence that I set the formula that is renewed weekly subscription for free when the budget (provisional) is not sufficiently positive: I'm glad to be paid only when they offer concrete results to those who follow me ... and then this will always be our common goal. Good work!
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