Hard 8 and let it ride!
Need help finding a way to trade with a 1/100 (risk/reward)
- Thread starter anycolour
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The issue is that your chances will not be better than at a casino. If you want 100x return then your chance must be less than 1%, because otherwise everyone would be doing what you proposed. Since you trade with/against other traders then someone else would need to be stupid enough to give you better chances than their own. Generally the odds are calculated into the price of whatever you may trade, especially options.
A bigger issue with trading is when to exit. What if you take the gamble and indeed make a trade that may win 100x (with less than 1% chance), but later you get only 20x return and don’t know whether the profit will continue increasing or you’ll lose whatever you’ve made so far?
So trading it's not just about making a bet, but also knowing when & how to collect the profit (or get out with a loss).
Yet another issue is that you didn't spend years learning how to trade, and simply want a single instruction given to you. Anyone wanting to pull this off would’ve spent months or years preparing to waste $10k.
Yet another issue is your statement that you will stay in the trade for about 250 days, which is opposite of taking risk. Taking risk means betting on the market crashing tomorrow, not a year from now. So no one will sell you anything that will allow you to take so little risk and make 100x.
As for the choice of what to trade, straight calls and puts that you are already familiar with should be best. So simply spend $25 on any SPY put or call expiring within a few days and see how it feels to lose it, then try again, then again with different calls or puts, until you spend a year wasting $5K and then will you will be ready to make your final and largest bet with the remaining $5K - if you'll still dare.
BTW, in a casino/roulette if you bet on a single number your chance of making 35x profit would be 1 in 37, so why not do that?
Buy TSLA
Yeah, but Tesla. How is that working out for Californians, who keep having their power cut off from the forest fires? Tough to charge your car to flee the encroaching fires when PSEG doesn't provide you with the power you need to charge your vehicle to flee the fires their high-tension lines caused in the first place.
Go go fossil fuels!
True, but they may have a patented edge in roof panels, battery technology, and possibly even space exploration. Who knows? As far as vehicles, they may very well just be doing R&D for larger car makers who can scale it cheaper.
Here in New England, we just had a spate of 6 days with no sun. So much for charging the house and car and henhouse heaters. There is much to be said for fossil fuels.
If you understand option pricing its pretty simple to find. Just find options with a delta of .01 and a trade idea/anticipation that sends it to a delta of 1~, and if successful you give or take just did around a 100x return.
I have seen a few of these options play out in real time, Some I almost caught(but I closed before the full 100x). Its obviously pretty rare (1 in 100 as far as options pricing). And obviously majority of options expire worthless(like most peoples accounts.)
To do it with stock, find a small company that you think will 100x.(best to do this as an angel investor) but pretty much all companies in the S&P 500 could have been a 100x potential if you got in early enough. However, 99% of companies don't do 100x, in fact, 90%~ eventually go to 0 in your lifetime.(like most peoples accounts)
Anyways, I do follow certain markets/trade that can produce 100x but I have other more likely strategies that I spend more time on as I do this full time so bills come often and a 100x, well may never come(but in my position its worth keeping an eye on
as the cliche goes, reach for the stars and you may fall on the cloud)
I have seen a few of these options play out in real time, Some I almost caught(but I closed before the full 100x). Its obviously pretty rare (1 in 100 as far as options pricing). And obviously majority of options expire worthless(like most peoples accounts.)
To do it with stock, find a small company that you think will 100x.(best to do this as an angel investor) but pretty much all companies in the S&P 500 could have been a 100x potential if you got in early enough. However, 99% of companies don't do 100x, in fact, 90%~ eventually go to 0 in your lifetime.(like most peoples accounts)
Anyways, I do follow certain markets/trade that can produce 100x but I have other more likely strategies that I spend more time on as I do this full time so bills come often and a 100x, well may never come(but in my position its worth keeping an eye on
as the cliche goes, reach for the stars and you may fall on the cloud)buy Berkshire hathway and hold for 20 years