Wednesday, April 21, 2010

THINKORSWIM beats out OPTION HOUSE ! ( report #26 )

THINKORSWIM BEATS OUT OPTION HOUSE IN EXPERIMENTAL TRIALS Report #26

We've had a month or more to diddle with both Option House and ThinkorSwim brokerage online web platforms. In the process have decided to go with THINKORSWIM. They cost a little more in commissions, but the data and detail and complexity of their software is outstanding. Also the deciding criteria was that I was going through eliminating any LOSING TRADE IDEAS. This is narrowing down through trial and error, to SPREAD TRADING. One of the most successful trading ideas was the VERTICAL SPREAD and since this is a non directional trade, within parameters, channels or brackets, works fairly well. Took some learning though, and I'm not sure I've figured out all the nuances yet. The WEEKLY EXPIRATIONS in the OEX were the deciding factor for me. OPTION HOUSE do not offer them. THINKORSWIM do.
I had another problem with OPTION HOUSE, tried to do a long put the other day and it said my account was worth $3200 but refused my trade, saying I was only allowed option trades up to $547. The point in learning I was at, I just gave up, not wanting to fight with it anymore. I did not understand their figuring.
On the other hand, THINKORSWIM do not have good customer service. They are overloaded with cash traders, and do not have the time, to deal with the paper trading learners. So trying to figure out the complexity of their software - web based package is confusing and slow for me. Been at it around two weeks now. Picking up tricks as I go along, but a slow process. Still, they are giving me the trading information I need to make a decision on when to go into CASH TRADING with my life savings. Looks like about 6 to 8 weeks away, if I stay successful?
There is still a lot to learn for me. I've decided to drop all directional LONG trades, or singles and concentrate on non-directional SPREAD TRADING. I've actually only learned roughly one method so far, the VERTICAL SPREAD, or at least half of this method.
They also have DEBIT VERTICALS, CREDIT VERTICALS, SINGLES, BACK RATIO, CALENDAR, DIAGONAL, STRADDLE, STRANGLE, BUTTERFLY, CONDOR, IRON CONDOR, VERTICAL ROLL.
Right now I'm having trouble EXITING, or CLOSING the VERTICAL SPREAD on their web based platform, but did successfully close a long single PUT yesterday, entering the opposing trade. So I'm guessing it will be more or less the same for the SPREADS?

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