To the world stock market trading, I got when I was 12 years old. It was true. My parents left on a business trip, leaving me in the care of grandparents. Once, he took me with them to lectures by before some very serious people. I was very impressionable child, so after the lecture, attended in addition to its desire, my imagination was shaken to the ground, because within two hours I had to listen to on shares, bonds and currencies. About how they change their prices in a few fractions of a second, as some people make millions in this state, while others lost in an instant that the earning years. Now you understand? I got to the lecture, a discussion of open trade. After it I went to the same door, which went down, but it was a different world. In the courtyard stood the year 1977.
You ask where my grandfather knew about such tricky things in this already seemingly distant 77 th, when the adjustment to be a good decade? It's simple - he worked in the stock market with the 46 th year. No, I live in Russia, and has always lived in it, but my grandfather did not live in America, not Germany, not even in Israel. He was born deaf in the village, where some of Tver, there is nothing left except porosshih thistles skeletonize chimneys. And it did not change citizenship.
He worked all his life to the Party and the Motherland, by some secret business abroad. I do think the grandfather was kontrrazvedchikom, although I do not know for certain - he never talked about it, but I have not tried it out anything. But I know for sure - he was working abroad at that time almost all the major world stock exchanges, trading stocks, bonds, warrants, options and commodities. And as you now guess, the experience he had not a little - no less than 30 years. Experience, respectively, as well.
If you are trying to envy me, then nothing. Grandpa almost anything I have not passed their knowledge. And now I will tell you why. Exchange disease struck me in boyish age, when the thought to pull girls in braids, and shoot catapult read Mayne Reid, and grandfather told me: "Vnuchek, learn, you still is too early, and without any knowledge of you there propadesh" - on the stock exchange, course. Soon he moved to another city, where the climate was better for his health, so I saw it very sparingly - only in the holidays.
Then - Institute, and meetings have become even shorter. But I always remember the contagious sense of delight, which felt many years ago, when he first heard about the exchange. That is why I was looking for every way to it, and now 85-m long, opened her first trading account. Luckily, I knew almost all buddies grandfather, who also knew something, they are something and prompted me, how and what to do. When in Russia running Exchange, I already knew well what it is, and just as many have been encouraged by the new prospects, kazavshimisi such bright at the moment. But I will not trifle soul, revealing the sick, and the better will continue, slowly move quickly to action.
I must honestly admit, I'm not one of the successful traders, although I managed not to lose money. Mistakes were strandartny. I came out of the trend too early, as soon as possible haste to take profits, while you had the opposite - to build positions. A loss allowed to grow beyond measure, and experienced fear from them. Of course, I was able to make money, sometimes substantial, but also had a lot to lose. Therefore, putting a hand on heart, I realized internally that I am either unable to achieve success on the stock exchange, or clearly doing something wrong. But to accept this could not - I do not allow my pride and a desire to satisfy his morbid self-esteem. What I did only try, which only the methods of analysis or engaged - nothing helped.
Being desperate, I decided to go on vacation and went to his grandfather. He lives now in Sochi, so everything was at an opportune moment. Being in a dejected state, I do not udosuzhilsya send him a telegram, so nagryanul as snow on the head. Arriving late at night, I expected a catch dedulyu in bed, and before lamenting the fact that I have to wake him. The mood has improved a little bit of a door, I quickly opened the "incoming" housewife. And the next minute of all my painful thoughts no trace - they completely wiped astonishment, emerged at a time when I entered the office grandfathers. It appears painfully familiar painting, is often a vision in many treyderskih institutions rasplodivshihsya recently in Moscow: my grandfather sat in a huge leather chair, vperivshis four huge computer monitor and to enjoy zhmakal on the mouse, shnyryaya quick look at running a line quotations. He traded in the market! And it was a Level Two NASDAQ!
Yes, in the past he has worked on the exchange, but it was completely different times, when the applications were sent by telegraph or telephone, the prices do not behave madly, and the acme of perfection is the ability to make and read graphs tic-tac-toe. And besides, as far as I know, moving away from business, his grandfather as something not particularly sought for the active exchange activities. "Apparently, something happened," - I thought, and felt right to wait until the end of trading session, to begin to Questions, so after a brief greeting, preferred to move into the living room. Fortunately, had to wait long, bidding in America will soon end and grandfather prisedinilsya to my late dinner.
Dying with curiosity, but knowing that my grandfather was not for that did not break, if it is to ask directly, I made a sly maneuver, beginning with recollections of the lectures in the 77 th when I was infected stock fever, and then moving on to the story their successes and failures in the stock market game, in the course of thinking aloud on the market. As might be expected, at first just to listen to me, a grandfather at one point and led the revival in the conversation. Read more - more, and soon I learned it all: it turns out, intrigued grandfather of the new technology in trading industry, and studied their development, he could not deny ourselves the pleasure of old shake and try to move away from the conservative portfolio, which reviews them every few years, to active management. Quickly found out that this approach allows to make money in the correct and reasonable actions, grandfather and easily without much resistance podsel "at the needle exchange game.
Now I muchil only one question: "How successful have been able to sell grandpa?" Like read my thoughts, grandfather somehow out a subtle gesture from the inner pocket sheets with the lists of transactions, and gave them to me, with the words: "If you do not understand, then I'll explain." Mechanically, I took them and spread. Previously visited my amazement, it was nothing compared to brought before me, when I began to consider recording dedushkinyh trade sledok.
He had no minus!
He sold only with a positive result!
His actions were not flawlessly, but the result still appeared on the basis of positive!
How is it possible? I could not understand, because in reality, the portfolio consisted of a thick batch of shares and options available in abundance and in the short and long positions. I was to discourage, and could not get in the sense where the money is taken. Then I came to the aid of his grandfather, saying that he works mostly with the volatility, which has learned from Western books.
"If you examine some of them, then you will understand how to make money," - said his grandfather, looking cunningly at me. Meaning podkovyrki it was clear to me - these books were published in English, and although he was not a mystery to me, but I am lazy to read, with a propensity to Russian version. "If you prefer books in Russian, then I can reassure you, - said his grandfather - I have heard that is preparing a number of books in Russian. The conversation that took place at the beginning of 2001.
Pogost with grandparents and looking at its strong stock life, I realized: for me all is not lost. Of course, I knew little of the stock prodelok grandfather. But understood one thing: he tried to take a little, fixing the small share of profits through rehedzhirovanie. His only option was a combination of me not entirely clear, although I knew that the options and how they can be used, but never assumed their hidden capabilities and a high flexibility. Returning home, I bought a book recommended to them, but certainly not udosuzhilsya to read until the end because I was scared of enormous thickness, ??????? which was more than my Force. Looking after some time on the Internet, I discovered that indeed - a book: Chekulayev, Tomset, Connolly, and I was among the first buyers.
I read all night, and had not yet reached the last page, could not stop. I have captured the spirit, as understood: all that before I did - it was empty pastime and the money - that they were lying on my legs. Understood the main points and understand the approach to the option trade, where the main thing is to find the right price and performance series, I quickly podnatorel in this field, starting finally to get pleasure from trading on the exchange. My account started to grow, but most importantly - I found that I feel much better because of the psychological mood of comfort.
This is the most wonderful - to be in excellent spirits, without worrying about where to move prices: up or down. In any case, I have a profit, and left only a few - to take it slowly and not greedy. Reading the excellent work of Kevin Connolly "Buying and selling volatility", published in Russian, supplemented my knowledge of the world's stock option trading, which manages all the volatility, allowing you to remain market-neutral, and not even look at where the prices - profits are still provided . Index - all precisely calculated, not to be greedy and have patience.
So, now that I have used in my trading practices? It is very simple, basically - is buying or selling a strangle streddlov. Typically, one "leg" is made up of shares, and another - of options. Due to the fact that call options are traded more actively, personally, I prefer to stand in shorts the stock, while buying some call-laundering, using the delta-neutral. As a result, all my short positions on shares and at the same time I was not worried that prices will rise suddenly. And I must confess frankly: I'll stand in them for years. If you are interested in a list, it is not secret: for example, I am in short on the shares of Microsoft (MSFT), Oracle (ORCL), People Soft (PSFT), Qualcomm (QCOM).
The most curious to me the situation with such a paper as People Soft (PSFT), which I had some interesting conflicts. I ran into it recently, in February when she was in the region of $ 40. Selling 200 shares and ???????? 3 January call with the price performance of 40, I actually created a long streddl, where at the bottom of the market gains, I had a short action, and at the top - long call. This is - a standard initial position, with the purchase of volatility. What happened during that period, while I hold this position? She happily went down to 18, and all the way, I buy little by little his shorts.
In the course of this downward trend, while she was somewhere in the second part all the way down, the unexpected happened: suddenly received a notice from the broker that they could not make shorts for this paper. And I should doprodavat at any price. What to do? What would you do personally?
Fig. 1. Here is a whole period in which the strategy of "buying volatility" by Connolly on PSFT (Nasdaq).
Fig. 2. Type curve gains / losses in the original position on the PSFT (Nasdaq) - turn up in both sides of the legs show profit regardless of the direction of the trend: whether it is up or down. The whole focus is to gain time to collect. The schedule is created by using a program that came with the book, Connolly K. "Buying and selling volatility."
I do not even pomorschilsya, but quickly changed their position, using synthetics, the benefit at that time there were market differences that have led to a further cut in the amount of risk-return 4.5% per annum. Although I have the paper in long, but in reality I was still standing in shorts and all - through the options! If I did not know how to create a synthetic position, equivalent to shares, excluding options, but where there is nothing, it certainly would have been in a quandary.
Now that the action again and went back up above 40, I continue to remain integrated in the short equities, but now I receive benefits from their call options. And it does not matter whether the paper will be to new heights, or again go down. Important variations, and I need every day to produce a minimum profit through the operation with small lots of shares, covering losses from ending the time value of options. I must immediately warn: the main problem with this trade - it is a commission, which must be small so as not to work for a broker. Such cases now. I will not describe the many strategies and approaches - better than you to read these books, even if you're never going to trade options. Because that can always arise, a situation in which for you would be hard to leave the position, but knowing how the options, you will always be able to withdraw from the difficult situation.
And besides, you can not suppress the extremely high leverage inherent in options. For example, recently I watched as an option, worth 75 cents, which was required for a contract total $ 75, the day became cost 1.50 dollars, giving a 100% profit excluding charges. A few days later, the option traded at 7.50, providing the contract price of 750 dollars, that is, profit was ten, with limited risk, which was exactly equal to 75 dollars. And the whole business was something - uglyadet increased activity of buyers and an unusual increase in open interest. So my advice to you: do not pass by apparently attractive opportunities and be more flexible in their views - and the luck is coming to you. Me she smiled when I realized that such options, and how they work, and all that - thanks to a remarkable book, which I highly recommend you. And do not forget: they have no analogs and is doubtful that they ever appeared in Russian.
You ask where my grandfather knew about such tricky things in this already seemingly distant 77 th, when the adjustment to be a good decade? It's simple - he worked in the stock market with the 46 th year. No, I live in Russia, and has always lived in it, but my grandfather did not live in America, not Germany, not even in Israel. He was born deaf in the village, where some of Tver, there is nothing left except porosshih thistles skeletonize chimneys. And it did not change citizenship.
He worked all his life to the Party and the Motherland, by some secret business abroad. I do think the grandfather was kontrrazvedchikom, although I do not know for certain - he never talked about it, but I have not tried it out anything. But I know for sure - he was working abroad at that time almost all the major world stock exchanges, trading stocks, bonds, warrants, options and commodities. And as you now guess, the experience he had not a little - no less than 30 years. Experience, respectively, as well.
If you are trying to envy me, then nothing. Grandpa almost anything I have not passed their knowledge. And now I will tell you why. Exchange disease struck me in boyish age, when the thought to pull girls in braids, and shoot catapult read Mayne Reid, and grandfather told me: "Vnuchek, learn, you still is too early, and without any knowledge of you there propadesh" - on the stock exchange, course. Soon he moved to another city, where the climate was better for his health, so I saw it very sparingly - only in the holidays.
Then - Institute, and meetings have become even shorter. But I always remember the contagious sense of delight, which felt many years ago, when he first heard about the exchange. That is why I was looking for every way to it, and now 85-m long, opened her first trading account. Luckily, I knew almost all buddies grandfather, who also knew something, they are something and prompted me, how and what to do. When in Russia running Exchange, I already knew well what it is, and just as many have been encouraged by the new prospects, kazavshimisi such bright at the moment. But I will not trifle soul, revealing the sick, and the better will continue, slowly move quickly to action.
I must honestly admit, I'm not one of the successful traders, although I managed not to lose money. Mistakes were strandartny. I came out of the trend too early, as soon as possible haste to take profits, while you had the opposite - to build positions. A loss allowed to grow beyond measure, and experienced fear from them. Of course, I was able to make money, sometimes substantial, but also had a lot to lose. Therefore, putting a hand on heart, I realized internally that I am either unable to achieve success on the stock exchange, or clearly doing something wrong. But to accept this could not - I do not allow my pride and a desire to satisfy his morbid self-esteem. What I did only try, which only the methods of analysis or engaged - nothing helped.
Being desperate, I decided to go on vacation and went to his grandfather. He lives now in Sochi, so everything was at an opportune moment. Being in a dejected state, I do not udosuzhilsya send him a telegram, so nagryanul as snow on the head. Arriving late at night, I expected a catch dedulyu in bed, and before lamenting the fact that I have to wake him. The mood has improved a little bit of a door, I quickly opened the "incoming" housewife. And the next minute of all my painful thoughts no trace - they completely wiped astonishment, emerged at a time when I entered the office grandfathers. It appears painfully familiar painting, is often a vision in many treyderskih institutions rasplodivshihsya recently in Moscow: my grandfather sat in a huge leather chair, vperivshis four huge computer monitor and to enjoy zhmakal on the mouse, shnyryaya quick look at running a line quotations. He traded in the market! And it was a Level Two NASDAQ!
Yes, in the past he has worked on the exchange, but it was completely different times, when the applications were sent by telegraph or telephone, the prices do not behave madly, and the acme of perfection is the ability to make and read graphs tic-tac-toe. And besides, as far as I know, moving away from business, his grandfather as something not particularly sought for the active exchange activities. "Apparently, something happened," - I thought, and felt right to wait until the end of trading session, to begin to Questions, so after a brief greeting, preferred to move into the living room. Fortunately, had to wait long, bidding in America will soon end and grandfather prisedinilsya to my late dinner.
Dying with curiosity, but knowing that my grandfather was not for that did not break, if it is to ask directly, I made a sly maneuver, beginning with recollections of the lectures in the 77 th when I was infected stock fever, and then moving on to the story their successes and failures in the stock market game, in the course of thinking aloud on the market. As might be expected, at first just to listen to me, a grandfather at one point and led the revival in the conversation. Read more - more, and soon I learned it all: it turns out, intrigued grandfather of the new technology in trading industry, and studied their development, he could not deny ourselves the pleasure of old shake and try to move away from the conservative portfolio, which reviews them every few years, to active management. Quickly found out that this approach allows to make money in the correct and reasonable actions, grandfather and easily without much resistance podsel "at the needle exchange game.
Now I muchil only one question: "How successful have been able to sell grandpa?" Like read my thoughts, grandfather somehow out a subtle gesture from the inner pocket sheets with the lists of transactions, and gave them to me, with the words: "If you do not understand, then I'll explain." Mechanically, I took them and spread. Previously visited my amazement, it was nothing compared to brought before me, when I began to consider recording dedushkinyh trade sledok.
He had no minus!
He sold only with a positive result!
His actions were not flawlessly, but the result still appeared on the basis of positive!
How is it possible? I could not understand, because in reality, the portfolio consisted of a thick batch of shares and options available in abundance and in the short and long positions. I was to discourage, and could not get in the sense where the money is taken. Then I came to the aid of his grandfather, saying that he works mostly with the volatility, which has learned from Western books.
"If you examine some of them, then you will understand how to make money," - said his grandfather, looking cunningly at me. Meaning podkovyrki it was clear to me - these books were published in English, and although he was not a mystery to me, but I am lazy to read, with a propensity to Russian version. "If you prefer books in Russian, then I can reassure you, - said his grandfather - I have heard that is preparing a number of books in Russian. The conversation that took place at the beginning of 2001.
Pogost with grandparents and looking at its strong stock life, I realized: for me all is not lost. Of course, I knew little of the stock prodelok grandfather. But understood one thing: he tried to take a little, fixing the small share of profits through rehedzhirovanie. His only option was a combination of me not entirely clear, although I knew that the options and how they can be used, but never assumed their hidden capabilities and a high flexibility. Returning home, I bought a book recommended to them, but certainly not udosuzhilsya to read until the end because I was scared of enormous thickness, ??????? which was more than my Force. Looking after some time on the Internet, I discovered that indeed - a book: Chekulayev, Tomset, Connolly, and I was among the first buyers.
I read all night, and had not yet reached the last page, could not stop. I have captured the spirit, as understood: all that before I did - it was empty pastime and the money - that they were lying on my legs. Understood the main points and understand the approach to the option trade, where the main thing is to find the right price and performance series, I quickly podnatorel in this field, starting finally to get pleasure from trading on the exchange. My account started to grow, but most importantly - I found that I feel much better because of the psychological mood of comfort.
This is the most wonderful - to be in excellent spirits, without worrying about where to move prices: up or down. In any case, I have a profit, and left only a few - to take it slowly and not greedy. Reading the excellent work of Kevin Connolly "Buying and selling volatility", published in Russian, supplemented my knowledge of the world's stock option trading, which manages all the volatility, allowing you to remain market-neutral, and not even look at where the prices - profits are still provided . Index - all precisely calculated, not to be greedy and have patience.
So, now that I have used in my trading practices? It is very simple, basically - is buying or selling a strangle streddlov. Typically, one "leg" is made up of shares, and another - of options. Due to the fact that call options are traded more actively, personally, I prefer to stand in shorts the stock, while buying some call-laundering, using the delta-neutral. As a result, all my short positions on shares and at the same time I was not worried that prices will rise suddenly. And I must confess frankly: I'll stand in them for years. If you are interested in a list, it is not secret: for example, I am in short on the shares of Microsoft (MSFT), Oracle (ORCL), People Soft (PSFT), Qualcomm (QCOM).
The most curious to me the situation with such a paper as People Soft (PSFT), which I had some interesting conflicts. I ran into it recently, in February when she was in the region of $ 40. Selling 200 shares and ???????? 3 January call with the price performance of 40, I actually created a long streddl, where at the bottom of the market gains, I had a short action, and at the top - long call. This is - a standard initial position, with the purchase of volatility. What happened during that period, while I hold this position? She happily went down to 18, and all the way, I buy little by little his shorts.
In the course of this downward trend, while she was somewhere in the second part all the way down, the unexpected happened: suddenly received a notice from the broker that they could not make shorts for this paper. And I should doprodavat at any price. What to do? What would you do personally?
Fig. 1. Here is a whole period in which the strategy of "buying volatility" by Connolly on PSFT (Nasdaq).
Fig. 2. Type curve gains / losses in the original position on the PSFT (Nasdaq) - turn up in both sides of the legs show profit regardless of the direction of the trend: whether it is up or down. The whole focus is to gain time to collect. The schedule is created by using a program that came with the book, Connolly K. "Buying and selling volatility."I do not even pomorschilsya, but quickly changed their position, using synthetics, the benefit at that time there were market differences that have led to a further cut in the amount of risk-return 4.5% per annum. Although I have the paper in long, but in reality I was still standing in shorts and all - through the options! If I did not know how to create a synthetic position, equivalent to shares, excluding options, but where there is nothing, it certainly would have been in a quandary.
Now that the action again and went back up above 40, I continue to remain integrated in the short equities, but now I receive benefits from their call options. And it does not matter whether the paper will be to new heights, or again go down. Important variations, and I need every day to produce a minimum profit through the operation with small lots of shares, covering losses from ending the time value of options. I must immediately warn: the main problem with this trade - it is a commission, which must be small so as not to work for a broker. Such cases now. I will not describe the many strategies and approaches - better than you to read these books, even if you're never going to trade options. Because that can always arise, a situation in which for you would be hard to leave the position, but knowing how the options, you will always be able to withdraw from the difficult situation.
And besides, you can not suppress the extremely high leverage inherent in options. For example, recently I watched as an option, worth 75 cents, which was required for a contract total $ 75, the day became cost 1.50 dollars, giving a 100% profit excluding charges. A few days later, the option traded at 7.50, providing the contract price of 750 dollars, that is, profit was ten, with limited risk, which was exactly equal to 75 dollars. And the whole business was something - uglyadet increased activity of buyers and an unusual increase in open interest. So my advice to you: do not pass by apparently attractive opportunities and be more flexible in their views - and the luck is coming to you. Me she smiled when I realized that such options, and how they work, and all that - thanks to a remarkable book, which I highly recommend you. And do not forget: they have no analogs and is doubtful that they ever appeared in Russian.
Vladimir Shapovalov
www.intrend.ru
www.intrend.ru
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