25-30% of the stock price if you want 400-500 days, but obviously depends on strike price and other factors. That's a 70-75% discount but You can also just buy 200 days or so and pay 15-20% of stock price depending on strike selection. Ive never had to pay 50% of the stock value and Usually pay around 15-25% of the stock price, always have at least 4 months to expiry and a delta .7 or higher. This allows you to leverage your entire Account while still keeping lots of cash , so you can roll your options in dark times. Why pay full price for a stock?
How do I develop my day trading strategy?
- Thread starter NeedToLearn
- Start date
precision and timing are of utmost importance. these are the missing keys to most everyone's success at trading. i just gave you the most important focal point that many never realize.
Don't listen to idiots.
aren`t precision and timing the same thing?
=====Let's say I'm looking for a strategy that trades anywhere between 3-10 times per day and would prefer a hard stop, how would you do it?What type of chart would you use? (tick? renko? minute? etc.) How many different charts would you look at? In other words, what are the variables?≠=====
To answer frankly (with explanation and reasons ) to your questions one has just has to give you the working method instead of giving the vague advice....
No one volunteered yet?
You were given excellent suggestions and advice here but i do not believe it will help....
why not ?
because its like giving sex education to a two years old...he needs to grow up first. When he will grow up he won't need any fucking sex-ed...
So instead of just "need to learn" you, "need to grow up"...
How?
Stop asking others questions, stop making baseless assumptions about what others do or make, stop trying to emulate what you thing successful traders do ( fuck them! )...abandon any expectations ( since u have no clue how reasonable they are) , stop reading books ( I am sure u have read enough)....
Relax and start just watch one instrument...
See at the chart were would u entered and exit, try to find repeated patterns, ask your self why , try to determine why some supports work some not, try to define what is trend how it develops, play with time periods, look for reasons ( do not confuse reasons with fundamentals)...etc etc
It may take many years....just to grow up
To answer frankly (with explanation and reasons ) to your questions one has just has to give you the working method instead of giving the vague advice....
No one volunteered yet?
You were given excellent suggestions and advice here but i do not believe it will help....
why not ?
because its like giving sex education to a two years old...he needs to grow up first. When he will grow up he won't need any fucking sex-ed...
So instead of just "need to learn" you, "need to grow up"...
How?
Stop asking others questions, stop making baseless assumptions about what others do or make, stop trying to emulate what you thing successful traders do ( fuck them! )...abandon any expectations ( since u have no clue how reasonable they are) , stop reading books ( I am sure u have read enough)....
Relax and start just watch one instrument...
See at the chart were would u entered and exit, try to find repeated patterns, ask your self why , try to determine why some supports work some not, try to define what is trend how it develops, play with time periods, look for reasons ( do not confuse reasons with fundamentals)...etc etc
It may take many years....just to grow up
Pick a time frame you are comfortable. Don't use sub-minute charts because of the data lag. Use whatever type of charts/indicators you feel comfortable. Next look at the charts of the contracts you wish to trade over past few months. Look for patterns you think you can exploit. Look at the past charts to determine entry and exit conditions. Forward test your trading strategy before going live. This is how to create your own trading strategy. Note: Short time frames means less profit and loss per trade.
OK, start the flames...
"
wet blan·ket
ˈwet ˈˌblaNGkət/Submit
noun-informal
a person who spoils other people's fun by failing to join in with or by disapproving of their activities. "
Late to this thread. I see a Genuine Question from a young man who is seriously working to make a living as a trader. I see lots of real "Helping Hands" -- from well-meaning ET "experts".
But OP "needtolearn" will Not benefit from all these replies. Too Much Information. Too many "Opinions" -- Too Much cautionary advice. Sorry to be the Wet Blanket -- Mr. NeedToKnow ...
You, NTK, are seeking another bit of research to add to your hard work and good efforts. The Answer is to address the Problem of How to be a profitable day trader or swing trader will not be found here or in books. Your search for Truth about profitable trading is first to understand that 95% of all new traders that have high hopes will join the 98% of all traders that are failing to make money.
So now that my contribution to your quest has just been a gigantic Negative -- Then what constructive answers will serve you? First, understand Risk. Second, understand your costs of trading and what you must overcome should your win ratio is not as you believed due to Paper Trading. Realize that Stops are not the answer. Nor are indicators. Picking a direction on trading any underlying is tantamount to setting yourself up for trading coin flips. If saying go long here on the ES based on indicators and patterns or Levels of Support and Resistance, or use of time frames etc. was the answer then in this viral internet world every trader would at least be more likely to be profitable.
Size of account, duration of a trade, reasons for entry and targeted profit are just basic building blocks to formatting a "trading plan". More is bad KISS is good". Simplicity is absolutely paramount to success.
OK, not a great amount of help in my post here. I felt it a necessary input to the OP and his obvious hard working effort to find the answers.
Specifics? Not more Pablum and trite advice. If Mr. NTK, you have definite questions based on your personal situation, (Small account, personal preferences ( trades not held overnight), Low-risk Low returns on margin) Then I will offer a solution to your questioning. No not books, not courses, not indicators, not chat rooms -- realizing the need to play like an outstanding Poker Player (Statistical Probabilities) -- how long will it take to make progress -- with someone as "NeedtoLearn" then understanding in but a few hours of study. Then 30 hours of practice (No more than that) or you will be trapped -- into the (98% that fail). Since the answers are Simple -- the trade plan not complicated -- failure will only be if NTL makes the simple the complex.
"
wet blan·ket
ˈwet ˈˌblaNGkət/Submit
noun-informal
a person who spoils other people's fun by failing to join in with or by disapproving of their activities. "
Late to this thread. I see a Genuine Question from a young man who is seriously working to make a living as a trader. I see lots of real "Helping Hands" -- from well-meaning ET "experts".
But OP "needtolearn" will Not benefit from all these replies. Too Much Information. Too many "Opinions" -- Too Much cautionary advice. Sorry to be the Wet Blanket -- Mr. NeedToKnow ...
You, NTK, are seeking another bit of research to add to your hard work and good efforts. The Answer is to address the Problem of How to be a profitable day trader or swing trader will not be found here or in books. Your search for Truth about profitable trading is first to understand that 95% of all new traders that have high hopes will join the 98% of all traders that are failing to make money.
So now that my contribution to your quest has just been a gigantic Negative -- Then what constructive answers will serve you? First, understand Risk. Second, understand your costs of trading and what you must overcome should your win ratio is not as you believed due to Paper Trading. Realize that Stops are not the answer. Nor are indicators. Picking a direction on trading any underlying is tantamount to setting yourself up for trading coin flips. If saying go long here on the ES based on indicators and patterns or Levels of Support and Resistance, or use of time frames etc. was the answer then in this viral internet world every trader would at least be more likely to be profitable.
Size of account, duration of a trade, reasons for entry and targeted profit are just basic building blocks to formatting a "trading plan". More is bad KISS is good". Simplicity is absolutely paramount to success.
OK, not a great amount of help in my post here. I felt it a necessary input to the OP and his obvious hard working effort to find the answers.
Specifics? Not more Pablum and trite advice. If Mr. NTK, you have definite questions based on your personal situation, (Small account, personal preferences ( trades not held overnight), Low-risk Low returns on margin) Then I will offer a solution to your questioning. No not books, not courses, not indicators, not chat rooms -- realizing the need to play like an outstanding Poker Player (Statistical Probabilities) -- how long will it take to make progress -- with someone as "NeedtoLearn" then understanding in but a few hours of study. Then 30 hours of practice (No more than that) or you will be trapped -- into the (98% that fail). Since the answers are Simple -- the trade plan not complicated -- failure will only be if NTL makes the simple the complex.
What a great post thanks for Sharing
Don't feel bad. Many waste 10, 20 or more years
Not surprisingly.
I would rephrase that to "one guy SAID he blablabla". Catch my drift?
Realize that no one's really motivated to help you here. Generally the ones responding do so out of the desire of "schooling" someone not because they actually have something of value to share with you. And those who do have an edge - won't share it with you. Really, no one is motivated to share an actionable trading edge or even point in the direction of one.
Yeah, if someone possesses a modicum of intelligence it's not hard to see how hilariously idiotic, schizophrenic and utterly useless these pieces of... yeah advice are. I mean half the responses are not even coherent. The other half it's obvious the poster is schizophrenic.
You shouldn't be surprised though. You as a retail trader generally cannot provide enough economic incentive to receive solid, edge-generating information. It's economics. So you end up with garbage like this - either free or paid.
You shouldn't be surprised though. You as a retail trader generally cannot provide enough economic incentive to receive solid, edge-generating information. It's economics. So you end up with garbage like this - either free or paid.