Unfortunately you have chosen one of the toughest times in the market to learn one of the toughest (but most profitable) instruments. Best advice is trade a practice account for a while and keep yourself accountable by keeping a log of trades. This will allow you to look back at why you took the trade, when you entered it, what went right, what went wrong, and what could have gone better.
There is no golden trading strategy.
What works for one, no matter how much they say it's their proven, profitable, best strategy ever.....may not work for you.
That being said, you need to develop a plan/strategy that you're comfortable with and TRADE IT.
The bad news, most good traders I know got that way by getting their teeth kicked in to the point of wanting to quit. It took losing a lot of money to force them into making a decision: quit or get disciplined.
Don't trade unless ALL of your criteria are met for your trade.
Learn technicals and use them for entry and exit. Computers do, and they are the majority of the liquidity in this market. You should do the same.
So, I'll post my rules for DAY TRADING (I trade a lot of swings, LT plays, short trades, spreads, etc.) but this is only for my day trading. Essentially scalping trades I do daily.
Good luck to you, and one last piece of advice, get comfortable with losses, they happen. But keep the losses small, and let the winners run. If you get on a real bad string of losses, step away for a week and reset. The market will always be here tomorrow...
RULES
- NEVER trade before 10:00am (10:30am on Mondays - if at all)
- Buy ONLY slightly OTM options
- If the play isn't there....DONT PLAY
- Close all ORB trades same day
- Get 30%.....no matter WHAT (100% on earnings)
- Keep losses SMALL/Cut trade immediately (20%) if goes against you
- Tune out noise (message boards are full of it)
- LOG ALL PROFIT/LOSSES DAILY - Nobody is going to keep you accountable like you will (Deleted my name here)
- Use ONLY excess profit over 30% for lottos
- ONLY day trade: AAPL, AMZN, BABA, FB, GOOGL, IBB, IWM, NFLX, NDX, PCLN, QQQ, SPY, TSLA
- Keep your charts updated daily. Always be doing your homework.
*10 Singles are 3 times better than 2 home runs
AI
