Some donate their time to the soup kitchen and some to food banks.
Others try to help us poor retail traders stay sober, like going to AA meetings.
Small Account
- Thread starter chyldom
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Others try to help us poor retail traders stay sober, like going to AA meetings.
Interesting. That seems like a very simple approach. Would you not use any other indicators like RSI or macd? What sort of instruments would you advocate using this 180ma approach? Many thanks.
It is 100 day EMA not 180 MA which is a different moving average. You can use individual stocks but, with a limited capital, use the QQQ since, the indexes have longer trends which would make them better trading candidates for this strategy. Using multiple indicators would just confuse you without making the trading system better. This is for longer term, position trading to grow your capital without taking stupid risks.
Beautiful great post. I think you are right. Don't trade options until you are profitable in an instrument that is easier. Eg stocks. I like your point 4 about modelling. It was only when I did this that excel that I understood how debit and credit spreads worked.Don't trade options if you have never trade any instruments in the past. They look simple but are extremely difficult and complicated. Whether you buy, sell, spread, combination, hedge, the odds of making money in the long run is small. Why? Your counter parties are usually the market makers and professional traders who almost always have better tools and more capable than you.
Can it be done? Yes.I started a long time ago buying and selling equities while holding a day job. After I quit my day job, I tried day trading for a while, then swing trade equities for a few years until in 2013, started trading options. After 6 1/2 years, I am still a newbie.
I spend most of my days researching, modeling, reading (including reading ET
If you are still interested, here is my suggestion:
1. Don't quit your day job until you don't need a day job.
2. Read up on stocks, stock markets, economics, finance as much as you can. I took many free courses on Coursera.
3. Don't purchase any courses, they won't give you any more information that you can get from books or watching free YouTube. Read up on options using all the books mentioned. I would add one more once you understand options: Colin Bennett's book on Trading Volatility.
4. Try to learn how options are priced and try to do some basic modeling yourself using Excel, VBA....
5. Try backtest and forward test. I forward tested by using single lot, cheap options to see how the strategy behave with real money.
6. Becoming a full time retail trader like us.
Welcome to the club. It can be done if you have the passion to learn and are willing to work hard.
Good luck.
There is hope for you sir.
I firmly believe you cannot do anything successfully without first understand how things work. For example, if you go through the logic of option pricing and come to understand the no arbitrage principle of pricing, you will find certain behaviors intriguing, you can vary the underlying parameters and see how price behaves..... I will quote my mentor @murray t turtle: Not a prediction.
