A little background: I've been trading S&P 500 related products for 7 years, SPY, spy options, ES, ES options, MES. In the first few years, I traded big accounts (usually started with $25K) and lost a lot, two years ago I started to trade very small accounts (1~2K), I only trade one or two MES contracts. I'm still a struggling trader but I think I know enough to become profitable, sometimes my emotions made me lose big, with the small accounts the room for errors is very small.
Two months ago, my family gave me a big account (140K) to trade, told me to trade safe, big loss is unacceptable. they believe that I can grow the account however slowly.
At first I was very confident, I mainly trade the wheel strategy (sell cash-secured puts, and covered calls if assigned), shouldn't be hard to make small profits. The market in the past two months is not very friendly to option sellers, my account got a big hit in the first week, at May 20 net liquidity dropped to 120K, fortunately I recovered all losses and became profitable in June, then 500 points decline, my account dropped to almost 120K again. With the recent rally I'm now 3K in red, I almost liquidated everything on Friday, it's been very stressful for 3 weeks.
Anyway, I definitely don't want to be in the same situation ever again, 20K loss for two times, this is my worst trading ever. If I lose $1k per day, 20K would take me a month to lose that much.
In the meantime, I also day trade MES, I can hold 500 SPY but I can only handle a few MES contracts mentally. My P/L is usually less than $200, but most days are green.
So, I mainly trade options (only selling), also day trade MES as complement. After this two months experience, I want to switch my trading - mainly day trade MES, and only trade options when a big chance presents, e.g. after a few days decline. But it seems to be a waste of fund, if I only trade a few MES contracts, a 10K or 20K account at most should be enough. I will deposit another 50K, so it's a 190K account, how do you trade this account? Safely, and maybe fund-efficiently.
I want to hear all kinds of opinions to open my mind. Thanks!
Two months ago, my family gave me a big account (140K) to trade, told me to trade safe, big loss is unacceptable. they believe that I can grow the account however slowly.
At first I was very confident, I mainly trade the wheel strategy (sell cash-secured puts, and covered calls if assigned), shouldn't be hard to make small profits. The market in the past two months is not very friendly to option sellers, my account got a big hit in the first week, at May 20 net liquidity dropped to 120K, fortunately I recovered all losses and became profitable in June, then 500 points decline, my account dropped to almost 120K again. With the recent rally I'm now 3K in red, I almost liquidated everything on Friday, it's been very stressful for 3 weeks.
Anyway, I definitely don't want to be in the same situation ever again, 20K loss for two times, this is my worst trading ever. If I lose $1k per day, 20K would take me a month to lose that much.
In the meantime, I also day trade MES, I can hold 500 SPY but I can only handle a few MES contracts mentally. My P/L is usually less than $200, but most days are green.
So, I mainly trade options (only selling), also day trade MES as complement. After this two months experience, I want to switch my trading - mainly day trade MES, and only trade options when a big chance presents, e.g. after a few days decline. But it seems to be a waste of fund, if I only trade a few MES contracts, a 10K or 20K account at most should be enough. I will deposit another 50K, so it's a 190K account, how do you trade this account? Safely, and maybe fund-efficiently.
I want to hear all kinds of opinions to open my mind. Thanks!
