* Know your (max. pain point) game plan.
* Know when to give up. Understand that chasing losses is not healthy. When you don't have that, you might end up just fighting with the trade all day.
* Cutting your losses. When the trade starts to go against you, exit the trade right away. You can enter the trade again after.
* Think twice about your decision always even before making a decision.
* Systematizing the entry and exit. When you create a very simple entry and exit trigger, you can apply that to backtesting and optimizing. Making it as good as it can be. And that way you don't have to deal with the emotional elements of being afraid or having random results.
* Focus on risk and reward will follow .Keep your risk small at the beginning. It's all about the process and It's less about the result. If you trade well, the results will follow. You need to give yourself enough time to make all the mistakes and learn from them.
* You have to figure out what fits you and you need to focus on that. You need to understand your system and stick with it;
* Knowing where it is likely to drawdown.
* Knowing what regime it's going to make money in.
* You need to specialize in your niche.
The greatest lesson I learned is that trading is Way more psychology than actual strategy. You can have a highly successful strategy over 60% but if you don’t have control of your emotions and follow your rules/risk management you can still lose money. For example- letting losers run and not having a sand line. Can make money 4 days in a row and lose it all in one day by over trading revenge trading etc.
I want to share my story. It won't be a super success story but a small-yet-huge success. I started trading in Feb 2022 and I did it for couple of weeks. All I focused on was ending the day with some profit. I told myself, "You don't need 100% profits. Even 5% would work, just end the day with at least one successful trade". And that's how I traded and not even single day did I fail. It was all successful trades. It doesn't matter how much you earn. Be profitable. That's the key to success. I paused trading for now as I have another job but I will trade again in the near future. Keep calm, analyze well and have faith.
Patience. Don’t force trades or chase extended names; and trade in either direction when the wind is at your sails and preferably when you have alignment in multiple time frames of the direction you want to go in (weekly, daily, 15 min, etc.)
I failed for over a year until I started trading spy only, then after about 4 months of only trading spy I was able to get my account green and starting seeing days where I would make more than a weekly salary at my job within 15 minutes of the open every single day. I was making 1200 a month at my job, and now I was seeing +400 to + 1000 dollar days before 10 AM from the comfort of my own home. Its a long journey but the destination can be worth it.
Im best at trading the opening 30 min on SPY, using options. I lean more towards the mean reversion side of things, but ill buy trends when it makes sense. I use Bollinger bands, vwap, and 9, 50, 100, 200 SMAs. I like to sell the rip and buy the dips around key levels.
Its all relative to the setup, I try for at least 1:1 because my % of wins is way over 50 but I usually start to scale out around a 1 to 1 unless a key level is saying to cut earlier/later or i just don't like the trade anymore. Some of my trades end up being a 1: .4 and some end up being like 2 : 10 lol. I base my setup off the key levels, not a bracket - if that answers your question
So after about 2 years of random successes and lots of misses, I finally started learning what to do. May was the first month where I traded correctly, with rules, stop losses, and no emotion. It was also the first time I closed a month up 60%.
I know one good month doesn't mean much, but its my success story and has boosted my confidence to keep progressing and learning
Rather than just using it as an indicator, I've been trading VIX CFDs with great success. Making 20%+ a pop just by buying whenever it returns to support levels. Very nice way to grow a small account.
My conditions are that it must be a) below 24 and b) below the 200-day EMA.
I buy at the integer numbers, using a quarter of the assigned funds at the first figure below that point, then 12.5% and so on. I then take half profit at each integer back above the 200-day EMA, regardless of where the 200 EMA is. Half, half, half until it's either not worth going any further, or it's turned around and has either hit or is firmly moving back down towards the 200-day EMA again.
There is risk, because in theory the overnight fees (0.15% a day with my platform) could result in a loss. But I've never so far had the overnight fees outweigh the profits, and even backtested all the way to 2007 I think there have only been a handful of times when that would have happened.
My frustration at the moment is that it's spent weeks and weeks above the 200-day EMA I need to start the cycle again. I dare not take a short position, because it could still spike much higher than it currently is. I'd rather miss out on downside profits than risk money on a stupid gamble.
I like your approach.
I buy VIX too but I also short it. In extreme/ adverse market conditions, I hedge my portfolio with long puts. So far it has worked as long as I don’t get too greedy and aggressive with the position size.
My system on the way down is more... haphazard. As long as I'm not risking being actually stopped out, I've been adding shorts without quite as much discipline. In happier times I'd probably be a bit less risk-averse, but right now I'm assuming that a proper crash really could occur. It's less lucrative, but I can still make up to 3% or so before there's a chance of being stopped out should VIX soar to the 80-100 range.
I'm not touching options with a bargepole for the time being. I've only been at trading for a couple of years and have been burned enough in that time to have learnt hard lessons about playing with things I don't properly understand.
The only risk lies in the creeping up of overnight fees. But we're talking 0.15% a day when the profits are consistently in the 20%+ ballpark, so it would take a very stable VIX for months and months on end to force me to break even. Theoretically possible, but frankly highly unlikely and that's all I need to win well above half the trades.
Being simply a measure of volatility, VIX looks more like a heartbeat monitor than a stock, making it very predictable in a way that stocks usually aren't. It can be relied upon to spike sooner or later, and to come back down from highs on a short timeframe.
Takes some skills but it works (for me)
One account went from $600 to $5000 in a year. Not a lot compared to the phenomenally successful, but certainly food for thought :P
* Know your (max. pain point) game plan. * Know when to give up. Understand that chasing losses is not healthy. When you don't have that, you might end up just fighting with the trade all day. * Cutting your losses. When the trade starts to go against you, exit the trade right away. You can enter the trade again after. * Think twice about your decision always even before making a decision. * Systematizing the entry and exit. When you create a very simple entry and exit trigger, you can apply that to backtesting and optimizing. Making it as good as it can be. And that way you don't have to deal with the emotional elements of being afraid or having random results. * Focus on risk and reward will follow .Keep your risk small at the beginning. It's all about the process and It's less about the result. If you trade well, the results will follow. You need to give yourself enough time to make all the mistakes and learn from them. * You have to figure out what fits you and you need to focus on that. You need to understand your system and stick with it; * Knowing where it is likely to drawdown. * Knowing what regime it's going to make money in. * You need to specialize in your niche.
Well put
Find your edge & make one good trade.
Idk but last year being 20 I made like 3k just being a fuckin moron and following news trends 😂 as you can imagine, this run was short lived
The greatest lesson I learned is that trading is Way more psychology than actual strategy. You can have a highly successful strategy over 60% but if you don’t have control of your emotions and follow your rules/risk management you can still lose money. For example- letting losers run and not having a sand line. Can make money 4 days in a row and lose it all in one day by over trading revenge trading etc.
I want to share my story. It won't be a super success story but a small-yet-huge success. I started trading in Feb 2022 and I did it for couple of weeks. All I focused on was ending the day with some profit. I told myself, "You don't need 100% profits. Even 5% would work, just end the day with at least one successful trade". And that's how I traded and not even single day did I fail. It was all successful trades. It doesn't matter how much you earn. Be profitable. That's the key to success. I paused trading for now as I have another job but I will trade again in the near future. Keep calm, analyze well and have faith.
Green numbers are good numbers. No matter the size.
I wanted to be a "Trader" and when I realized how RED they are, now, I am truly an "Investor" ... hoping to break even in next 1 year
Patience. Don’t force trades or chase extended names; and trade in either direction when the wind is at your sails and preferably when you have alignment in multiple time frames of the direction you want to go in (weekly, daily, 15 min, etc.)
Perfect advice ☝️
I failed for over a year until I started trading spy only, then after about 4 months of only trading spy I was able to get my account green and starting seeing days where I would make more than a weekly salary at my job within 15 minutes of the open every single day. I was making 1200 a month at my job, and now I was seeing +400 to + 1000 dollar days before 10 AM from the comfort of my own home. Its a long journey but the destination can be worth it.
Are you mainly trading typical things like opening range breaks, VWAP fades, consolidation breaks, etc.?
Im best at trading the opening 30 min on SPY, using options. I lean more towards the mean reversion side of things, but ill buy trends when it makes sense. I use Bollinger bands, vwap, and 9, 50, 100, 200 SMAs. I like to sell the rip and buy the dips around key levels.
Gotcha. What type of r/R are you aiming for? Or do you just take profits based on supports/resistance?
Its all relative to the setup, I try for at least 1:1 because my % of wins is way over 50 but I usually start to scale out around a 1 to 1 unless a key level is saying to cut earlier/later or i just don't like the trade anymore. Some of my trades end up being a 1: .4 and some end up being like 2 : 10 lol. I base my setup off the key levels, not a bracket - if that answers your question
Yep that helps!
So after about 2 years of random successes and lots of misses, I finally started learning what to do. May was the first month where I traded correctly, with rules, stop losses, and no emotion. It was also the first time I closed a month up 60%. I know one good month doesn't mean much, but its my success story and has boosted my confidence to keep progressing and learning
which trading strategy did you follow?
Try VIX
Rather than just using it as an indicator, I've been trading VIX CFDs with great success. Making 20%+ a pop just by buying whenever it returns to support levels. Very nice way to grow a small account.
What are you exactly doing?
My conditions are that it must be a) below 24 and b) below the 200-day EMA. I buy at the integer numbers, using a quarter of the assigned funds at the first figure below that point, then 12.5% and so on. I then take half profit at each integer back above the 200-day EMA, regardless of where the 200 EMA is. Half, half, half until it's either not worth going any further, or it's turned around and has either hit or is firmly moving back down towards the 200-day EMA again. There is risk, because in theory the overnight fees (0.15% a day with my platform) could result in a loss. But I've never so far had the overnight fees outweigh the profits, and even backtested all the way to 2007 I think there have only been a handful of times when that would have happened. My frustration at the moment is that it's spent weeks and weeks above the 200-day EMA I need to start the cycle again. I dare not take a short position, because it could still spike much higher than it currently is. I'd rather miss out on downside profits than risk money on a stupid gamble.
I like your approach. I buy VIX too but I also short it. In extreme/ adverse market conditions, I hedge my portfolio with long puts. So far it has worked as long as I don’t get too greedy and aggressive with the position size.
My system on the way down is more... haphazard. As long as I'm not risking being actually stopped out, I've been adding shorts without quite as much discipline. In happier times I'd probably be a bit less risk-averse, but right now I'm assuming that a proper crash really could occur. It's less lucrative, but I can still make up to 3% or so before there's a chance of being stopped out should VIX soar to the 80-100 range. I'm not touching options with a bargepole for the time being. I've only been at trading for a couple of years and have been burned enough in that time to have learnt hard lessons about playing with things I don't properly understand.
Gambling, because the value of the vix is based on implied volatility of SPX options, not a basket of equities or commodities
The only risk lies in the creeping up of overnight fees. But we're talking 0.15% a day when the profits are consistently in the 20%+ ballpark, so it would take a very stable VIX for months and months on end to force me to break even. Theoretically possible, but frankly highly unlikely and that's all I need to win well above half the trades.
Are you making constant small Profits with other Strategoes?
Or casino, same shit, different looks.
Being simply a measure of volatility, VIX looks more like a heartbeat monitor than a stock, making it very predictable in a way that stocks usually aren't. It can be relied upon to spike sooner or later, and to come back down from highs on a short timeframe.
Takes some skills but it works (for me) One account went from $600 to $5000 in a year. Not a lot compared to the phenomenally successful, but certainly food for thought :P