MarketVVizard's Market Thoughts: What IS Market Timing and What IS NOT -- Re: Talkers Talk

» Jas_Jain - What IS Market Timing and What IS NOT -- Re: Talkers Talk

In response to message posted by MarketVVizard:

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"The other thing I still can't figure out is why Jas thinks he is NOT a market timer? He is a self proclaimed options expert for crying out loud, there are no options trades (even with leaps) that are NOT market timing trades. But even worse, he has talked about "numerous trading opportunities" as the price of his underlying stock fluctuates!"

Most technicians have a fundamental problem with distinguishing between PRICE-ONLY based specualtion, or trading, and using a TA-based timing signal as to when to enter and exit trades.

Let me explain what I do with options.

1. I enter a trade strictly based on price (valuation).

2. I do not use any type of stop-orders. I reduce my exposure strictly based on how much risk I am willing to take if things go against me.

3. The trading is strictly based on PRICE. For example, NVLS is not not as attactive a short at $30 as it would be at $50 over the next few months. Therefore, I will add short at $50 if I have risk tolerance at that level and will lighten my short position at $30. At $20, I might exit entirely depending upon other stocks being more attractive.

4. The price of a stock at an absolute level is the #1 reason for a trade and at relative level, to other stocks, is #2 reason.

I USE NO TA. Market Timing means using TA to determine the time to trade.

Price-only based trading is NOT Market Timing.

Jas

-- posted by Jas_Jain