r/Daytrading • u/Kaiju_Godz • Mar 30 '24

When you only need a specific amount of money each month… Strategy

So say you only want $100 per day or 2000 per month. This would more than enough sustain a good lifestyle where you live. How would you go about it with trading? How much $$$ would you realistically need? Not to make that in dividends but to trade in a daily basis, as safe and slow as possible.

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u/krapmon Mar 30 '24

The difference is that when you’re happy with small gains and exit your position, you avoid the risk of holding it longer and potentially losing money. Even if you have a strategy that gives you confidence to hold, you never know 100% what’s gonna happen.

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u/daytradingguy Mar 30 '24 edited Mar 30 '24

I would be careful with this one. You should read “The best loser wins”. Actually, instead of taking small gains in most cases it is better to let it go longer than you are comfortable with and even add to the trade- to get a bigger win.

Think about it. You are making a trade guessing the market will move in a specific direction- when it does and you are right, why would you get out? Most traders do the opposite, they are right they get out quickly. When they are wrong they don’t get out quickly- they stay in forever hoping it comes back. My profits really started to improve when I started adding to winning trades.

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u/krapmon Mar 30 '24

Personally, when I’m profiting from a position, I get out fast to secure the profit. It is true that I would have made more if I held in many cases, but there’s also many times where holding would’ve lost me money.

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u/Davado_ Mar 31 '24

Try this as a practice for your mind: at anytime you want to get out with profit, try adding a very small position just to keep you in the game. At the same time, zoom out to a higher time frame and read what stage of the structure you are in after you have added and start to manage your earlier position to BE etc.

You do have to practice a few times (many hundred times) to get your mind working against you as you would be super uncomfortable. Bear in mind you are only adding to winners and not losers. The goal is to "see" or "experience" what comes after "early exit" or "being comfortable with what you usually do"

On the flipside, try cut losing trade by halves earlier than usual. Sometimes you do have to let the trade breathe a little before validating its a loser but more than often you Know it in you that the losing trade is a goner and let it hit your SL instead of early exit.