Do you have any piece of advice for a novice trader? Anything that could be helpful?

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newbie003

Hi guys! so a while ago I asked a question on here and got a lot of helpful responses. so I think this is a good place to ask for advice or suggestions. I'm a novice options trader. A lot of skilled traders have told me not to rely too much on indicators or just don't use indicators altogether if that's possible. No skilled trader likes to tell their way of reading the price chart and probably would ask thousands of dollars to teach anyone that's interested, and I don't think there's anything wrong with it. So my question is, how do I learn to read the market without any indicators?? No one seems to help me with this one, how do I learn to do that? I've been watching videos and reading articles on price action and stuff but they aren't helping me much. Could someone please help me out a bit by giving me some advice? Or anything that could be helpful?

Thanks in advance for your help!
 
newbie003 said:
.... So my question is, how do I learn to read the market without any indicators?? No one seems to help me with this one, how do I learn to do that? I've been watching videos and reading articles on price action and stuff but they aren't helping me much. Could someone please help me out a bit by giving me some advice? Or anything that could be helpful?

Thanks in advance for your help!
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Well, depending on your charting package, you start by removing every indicator so all you have left on the monitor screen is price and volume.
The next thing you do is make sure it stays that way, don't return to it like an alchoholic.
Weaning is always difficult at first.
 
digitalnomad said:
Sure. Stay away from options. The odds get even more stacked against you with the added variables.
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Don't listen to this guy. Options are an asset class that is extremly difficult to handle due to it's non linearity. Doesn't mean that you cannot make money tho. Just get away from "reading" the market. You don't need to read it in order to cash in. You need an advantage that can be quantified.
Don't waste too much time on predicting with indicators or any other technical tools. Get into the meat of things. Get yourself a copy of "the biotech traders handbook" by ayers pelz.

This is how a retailer can trade options. Stay away from this options income BS.
 
digitalnomad said:
Sure. Stay away from options. The odds get even more stacked against you with the added variables.
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This is also my general advice for people even though I trade options myself. As a retail, your strategies are limited. Good ideas for retails are to do "wheel" type strategies. Sell a put, use it to acquire stock you think is going to go up, sell calls against the stock, when its called away repeat the process. Straddles and strangles are also pretty good. I prefer to stay in the market as long as needed, so when options strategies aren't available (I like FOPs), I've been getting into calendar spreads, intras/intex/etc as a way to "keep busy".

MrMuppet said:
Don't listen to this guy. Options are an asset class that is extremly difficult to handle due to it's non linearity. Doesn't mean that you cannot make money tho. Just get away from "reading" the market. You don't need to read it in order to cash in. You need an advantage that can be quantified.
Don't waste too much time on predicting with indicators or any other technical tools. Get into the meat of things. Get yourself a copy of "the biotech traders handbook" by ayers pelz.

This is how a retailer can trade options. Stay away from this options income BS.
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You're suggesting YOLO as a strategy. I think options income strategies are fine but the VIX is pretty low (near it's 52 week low) and there's not a whole lot of volatility to go around outside of earnings.
 
My advice is to paper trade until you are profitable, and only risk what is sustainable to lose.

Also, whatever aspirations you have, 10x it. You may need it for the down days. And down days won't only be PnL wise
 
MrMuppet said:
Doesn't mean that you cannot make money tho. Just get away from "reading" the market. You don't need to read it in order to cash in. You need an advantage that can be quantified.
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True, but the OP made it clear he fully intends to read the market. Also unlike naked positions, what you are suggesting isn’t viable without proper capitalization which is out of reach for most, especially in third world countries. I could sell premium all day running neutral/hedging strategies, but it would cut my ROI by 90%. I don’t like that.
 
How can anyone be a novice options trader and a novice trader? Options are a complex and expensive way for the private retail trader to access financial markets. I would suggest you should only look to be a novice options trader when you're already an expert trader. And even then, only if you really need to.
 
tomorton said:
How can anyone be a novice options trader and a novice trader? Options are a complex and expensive way for the private retail trader to access financial markets. I would suggest you should only look to be a novice options trader when you're already an expert trader. And even then, only if you really need to.
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That's just BS. There is no market for beginners and one market for advanced traders. If that would be the case, all experts would flood the beginner market to fleece the noobs.

You need to trade a market that you can find edge in and I guarantee you that some options markets are easier to trade than outright stocks or futures....at least for me.

Until of course you trade the noob traps aka ES, NQ, treasuries and the liquid stocks.
 
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