Hi,

I am new course participant. First of all, thanks Sun for his knowledge and experience sharing.

That day after attending Sun course, i think i need sometime to digest what has been taught. I wish i can join the next coming course for revision.

Anyway, i have downloaded the TWS demo for trial. Guess what, i found its more easier and all in one looks than other online discount broker ie. optionsXP.

Surprisingly, IB also offer futures and commodities but not only the stock options.

Well, i start doing the ND trading by using stocks for the beginning stage to test drive my skills.

I think for the beginner like me would may also have questions such like:-

A. Which / What kind of counters we should construct the NTD short guts? Meaning to say based on what rules or guidelines we shud consider so to select counters to do the sGuts?

Can we just shortlist counters just for reference and or practising?

The above may Sun already explain during the course but i just wish others to share theirs and or am confirming that i am doing the right way.

Sell options collect premium really a great business idea. Think what banker's think!!!



Thanks and regards,
ndtrader

Dear NDTrader, welcome to the forum and share your views and experiences. $0.10 for your first posting!

Hi NDtrader,

Yes, I like the non-directional trading system, either it is short guts, short strangle or butterfly. So long as I can collect money by selling time, and able to repair the position without cutting loss, I am all for that!

I have many short guts on the ETF and some holders (QQQQ, SPY, IWM, OIH, XLF etc). I do have some on the banks (JPM, MER), some on agriculture, energy and previous metals related companies. Oh, I forget the tech sectors (AAPL, RIMM, EBAY and SNDK).

Sometimes I do add it new counters by looking at ChannelNewsAsia or Blomberg or Yahoo Finance for top losers or top gainers for the day. If the volume is good, spread is tight, then I set up a new short guts.

Tell us what you trade in the future.

Hanz

Hi NDtrader,

Welcome to the forum ! Eugene Tan

hi ndtrader,
welcome to the community of non directional traders. :)

i do mainly ETFs at the moment. when i get more familiar with the system, will consider the heavy weight stocks like banks.

do let us know what u trade to share some trading ideas. thank you.

rgds
ky

Hi! Mr.Eugene, KY, Hanz and all others,


Eugene Wrote:
So long as I can collect money by selling time, and able to repair the position without cutting loss, I am all for that!

>>From the historical chart infact we can screen out the counter's most important/ critical resistance and support thus give us a good idea on what price we can do the Sguts. I am still wondering is it good to repair it rather than cutting loss (which in fact while critical support broken price may definitely fall deep to another level)! Maybe i am still yet seen the beauty of the "Repairing"?? Would appreciate if someone can share his idea?


I have many short guts on the ETF and some holders (QQQQ, SPY, IWM, OIH, XLF etc).
>>I also think of using this ETF fund and Holders as for target to Sguts first. I found that those contract if bot in nearest todate month would have no great deal. Only contract with 3 months and above expiration could have good enuf time decay value to collect premium. Thus, 3 months time for ETF / Holders shud be "SAFE" coz individual counters may have lots of other issue involved, ie announcement, split, bonus issue??? or Limit Down??? (Correct me if i were wrong!) Just me personal view.

I do have some on the banks (JPM, MER), some on agriculture, energy and previous metals related companies. Oh, I forget the tech sectors (AAPL, RIMM, EBAY and SNDK).
>> US finance holders should be providing great opportunity right now as i believe US is silently prepare for another bull run in near future. Most of the finance counters retrace about 50% of their time extreme high and thus provide very good entry opportunity. US dollar index value has been dropping for the last 7 years from 120 till now about 70.

For others like agriculture and or commodities related fields, i would rather use the underlying commodities to sGuts later. But not sure yet abt the commodities contract specification and or other terms, if i found its too costly and lower leverage than stocks, then of course would pick commodities related counters.

Sometimes I do add it new counters by looking at ChannelNewsAsia or Blomberg or Yahoo Finance for top losers or top gainers for the day. If the volume is good, spread is tight, then I set up a new short guts.
>> Thanks for sharing your idea. Its good. 1.Top Gainers/Losers + Volume + Fair Spread = SGuts!
Is there any way where one can view the list of today's top high Short Naked?/ Top Buy Call/Put, i think this would be also a way to shortlist SGuts counters???? Your comment please!

Tell us what you trade in the future.
>>May get a metastock options data and do what i did last time in KLSE. First we choose Sectors(Holdings in US term), then from sectors we choose counters, there are some ROC indicators to explore those "black horse" counter.

Maybe as a start u should construct short guts on ETFs' not stocks. Stocks gaps in a big way and are very news sensitive. Once you are comfortable with the strategy then you can move on to stocks on the Dow Jones and Nasdaq. Its' better to stick with some well-known names for stocks where there is good stock and options volumes and the bid/ask spread is narrower. U can find these infomation on stocks in Yahoo Finance and MSN Money - these two are the most popular and easy to use.

Eugene

Dear Mr. NDtrader,

Please kindly elaborate this statement because this is not very clear:

I also think of using this ETF fund and Holders as for target to Sguts first. I found that those contract if bot in nearest todate month would have no great deal. Only contract with 3 months and above expiration could have good enuf time decay value to collect premium. Thus, 3 months time for ETF / Holders shud be "SAFE" coz individual counters may have lots of other issue involved, ie announcement, split, bonus issue??? or Limit Down??? (Correct me if i were wrong!) Just me personal view.

We will provide our comments after your explanation. Thanks for your time again.

Etradehome.com

You might want to look at this site for ETFs' --->
http://www.etfconnect.com/

Eugene

Hi NDtrader,

I found some optionable commodity futures in IB but I do not see much liquidity. I am not sure whether it is the volume traded in IB only or total volume from the futures market. Anyone good in commodities to enlighten me?

ZI CBOT 5000 OZ SILVER FUTURES
ZC CORN FUTURES
ZG GOLD 100 TROY OZ
YM MINI SIZED DOW JONES INDUSTRIAL AVERAGE $5
ZO OAT FUTURES
ZR ROUGH RICE FUTURES
ZS SOYBEAN FUTURES
ZM SOYBEAN MEAL FUTURES
ZW WHEAT FUTURES

Thank you.

Most commodities futures are active when the US markets open or clser to US markets open/clse timing. What time did you check the vols? Few retail traders trade these commodities and options cause the margin is high and afraid of margin calls.


Eugene

There could be a lot of volumes but most of these commodities are pit traded not electronic traded. IB is electronic trading. The most popular electronic traded futures and options are the Eminis - Emini Dow, Nasdaq, S&P500 Russell. I think this is the answer to the question.

Thanks Eugene, do you think the volume will be higher for those soft commodities in expresstrade or other commodities trading software? I really like the commodities.