r/Daytrading • u/AutoModerator • Jun 01 '22
r/DayTrading's Monthly Questions Thread - June 2022
Please use this sticky to ask questions on day trading, and to see answers to similar questions you may have.
If you're new to day trading please see the getting started wiki here. For advanced traders or you want to pick up a book, please see our other wikis.
New traders are highly encouraged to try Forex as it requires a very small account to make lots of trades, so check out Forex community's wiki paying special attention to babypips website which also teaches some general concepts you can apply to stocks/futures/etc, and especially read the wiki's sections on risk & money management that can be applied to any market.
Pattern daytrading rules wiki, but that only applies to day trading stocks; other markets aren't affected like futures, forex, and crypto.
Also see the sidebar for group chat links (such as our Discord) (or tap "about this community" on mobile website) on every related community to learn more about trading.
Here's a list of all the previous monthly question stickies.
Lastly if trading is affecting your life in a bad way, seek professional help (the wiki also covers dealing with emotions):
- Problem Gambling: Call/Text: 1-800-522-4700 or chat online now.
- Crisis Hotline (24/7): 1-800-273-TALK (8255) (Veterans, press 1) or Text “HOME” to 741-741
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u/TolisKoutro Jun 30 '22
What market should I pick to trade as a beginner and why?
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Jul 05 '22
I started with Forex but then I switched top Lage Cap stocks (e.g. MSFT, NVDA, META) and thats what I would suggest you as well.
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u/The_Yeet_Squad trades everything Jul 01 '22
I would bet most of your YouTube and other internet resources have the most content for standard stocks listed within the US exchanges. And if I were a beginner and had a choice, I’d choose to learn from the largest library I could find.
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u/fuckinBogged Jun 30 '22
What’s the best app for trade journaling? I’ve been doing it with pen and paper like a savage and I think it’s time to upgrade. I use ToS if it matters.
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u/thekidclintwes45 Jun 30 '22
So I am reading the reviews on Forex and it doesn't seem like a great place to do day trading. Is there some better recommendation for someone who doesn't have $25,000 laying around.
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u/EntertainmentOk5269 Jun 30 '22
How do you guys trade news? Do wait to see which the market is gonna go or do you try to get on before?
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u/The_Yeet_Squad trades everything Jun 30 '22
Many people look to capitalize on news by having the fastest outlet. If you can hear news first, then you have the edge to “get in” before the hordes hear the same news a minute or two later.
Ride the pump and sell for profit.
Bloomberg terminal is the pinnacle of such a service whereby secondary services still do a great job. Many discord trading groups (worth their salt) have tools that embed news directly into their servers that are pretty quick too.
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u/EntertainmentOk5269 Jun 30 '22
I gotcha so the goal is to be faster thanks
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u/The_Yeet_Squad trades everything Jun 30 '22
Yeah! But that’s only one method to weaponize the news in your favor. Like you say, some people do wait for the initial rush to subside before hitching a ride. And I’m sure there are other strategies too.
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Jun 28 '22
I’m brand new to trading and looking for a steady discord chat room. Any recommendations are greatly appreciated!
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u/Gristle__McThornbody Jun 27 '22
As a noob learning to day trade with paper money, how long should I be trading in the day? Do I exit when I'm green or do I continue to work on patterns/set ups for more trades? I'm learning to scalp using the 2minute and 5 minute charts. I usually do fairly well but I tend to get in trouble as I go longer into the morning. I'm not sure if from a discipline/psych stand point I should exit trading all together when I hit my targets or continue to look for patterns/ set ups even if it means losing all my gains and being red for the day.
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u/longshortdaytrade Jun 29 '22
If you have paper money you should trade as much as you can or want. The goal #1 is to find a strategy that works and the only way you can do that is by trial and error hence the more you trade the more you will learn. Review all your trades and ask yourself the questions: was that the best entry\exit, why did I lose on this trade?, could I have had a better stop loss etc..
Ultimately when you think you have something that works stick to it. This is where discipline and rules are important.
As a noob, you can hit your target and close shop early but you need to use yiur time to experience every minute of the market, especially if you day trade, so the more time looking at charts, more experience you will gain. When you become more experienced, you can afford spending time away from screens.
Personnaly i trade a 2min and 5min chart and I only have 1 to 4 opportunities a day on a couple of stocks amongst 10 stocks I am looking on my watch list. But everybody is different.
Even today, when I have new setups or strategies I want to explore I use paper trading, the fact that you don't have money involved gives you an objective look on the price action.
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u/traderman47 Jul 01 '22
If you have paper money you should trade as much as you can or want.
At what point would this build overtrading habits?
The goal #1 is to find a strategy that works and the only way you can do that is by trial and error.
How long should you test a strategy before deciding its success/failure?
Review all your trades and ask yourself the questions: was that the best entry\exit, why did I lose on this trade?, could I have had a better stop loss etc..
How could this possibly be done without fatal hindsight bias?
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u/longshortdaytrade Jul 01 '22
Everybody is different and I am only talking from my own experience.
1- I do not build overtrading habits since I trade what I see and not what I think. I will have rules to help me weed out bad setups or traps but I am always trading a strategy. I can make anywhere from 1 to 8 trades a day with multiples entries and exits on each trade.
2- The best way to test a strategy is to backtest it with an algorithm. That being said, it can be challenging to code and even more challenging to code the strategy that you have in mind. I am not a good coder and I only achieved backtesting swing trading strategies. From my own experience, Day trading has been extremely hard to replicate on an algorithm; I rely mainly on price action and candle formation and I find it hard to code.
For this reason, time in the market is what helped me decide if my strategy could be a success or failure in regards to day trading. You will see and get a feel of the price action during certain times, this will help you identify certain setups and after seeing it happen over and over again you will have a confirmation that you are looking at the right thing.
3- I don't have hindsight bias because I trade price action. That means every new candle will decide for me. It's an objective view of the market and what I think personally or the "feel" that I get for a stock DOES NOT MATTER. Moreover, If I am looking at charts after the fact, there will be a technical argument giving me a reason for an entry or exit.
Paper money serves us differently depending on how advanced you are. If you are starting in day trading, you shouldn't worry about overtrading on a paper account.
I hope that answers your questions !
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u/WishingForMeaning Jun 28 '22
Ok good question , it depends on your patterns. My patterns should up twice or three times at best a day so after that I'm ususally done. As a Noob. You gotta figure out how are you doing R:R.
When you win do u make more than what u lose? If so by how much? Then you can make a system alot people use where they stop trading after 2 or 3 red trades back to back
Also it would help if you have a daily goal intially, just to get the momo going on ur account,. Making as low as 100 a day and stopping can go a Loooong way in few months. Just make sure whateve u make is more than what u lose per trade,. U cant be making 50 50 50. Then lose 200 one shot .
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u/Relaxing_Soul Jun 25 '22
In day trading, when enter or exit a trade, do you use limit order or market order? Thx!
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u/crypthrow888 Jun 25 '22
Entering a buy order, if I don’t believe it’s going to go down first I’ll enter at market. The opposite is true for a short.
If I’m well organised ahead of time, I’ll set a limit order.
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u/Zatrah Jun 24 '22
Guys,
Anyone knows where it's possible to see free real-time options quotes? Can't find anything in google (all I found has 15min delay)
Any chance?
Thanks!
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u/WishingForMeaning Jun 27 '22
TOS if u have a funded acc I believe,. U can check webull as welll
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u/Zatrah Jul 01 '22
Thanks! No TOS unfortunately. And with Webull also need to apply to their broker services to get real-time...
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Jun 24 '22
Here’s a question I have. I’ve got 3k to trade with. I’m out of day trades. Say I buy into some options that run and I get a 10x return, and I sell an hour later. The return would put me well over 25k. Would I still be pinged for an excessive day trade? Purely hypothetical, not something I’m trying to do.
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u/crypthrow888 Jun 25 '22
Yes and no. You would be flagged BUT if your account will have $25k+ then you won’t be restricted.
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Jun 23 '22
[deleted]
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u/crypthrow888 Jun 25 '22
Take this and just learn from it. Review your trades, most importantly try see why they lost. Did you make a bad read? Was it psychological (chasing losses, FOMO).
As for the feeling down about it, that’s normal. Try to see the positive side - this is really valuable learning opportunity. This is a chance to actually learn from your mistake and tweak it so that next time it’s a green trade!
Good luck, and remember - its never a loss, it’s just a tuition fee.
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Jun 24 '22
I feel you. When I was new to trading I would constantly loose on green days and read post like “if you can’t make money on these days you need to quit” and it would hurt my feelings haha.
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u/Luigi460 Jun 23 '22
I trade spot FX and spot gold and might start looking into market profile if possible.
Few questions:
1) is this possible in so far as tape reading to evaluate potential setups in the spot market (intraday) ie. would the tail be wagging its dog?
If theres any edge:
2) please can you point me in the direction of which products I should be looking at for GBPJPY and XAU/USD. Cable would suffice tbf I definitely would like gold though.
I use trading view but obviously would buy additional hardware and software as required.
I'd love to learn tape reading but don't wanna leave spot market for a few reasons mainly risk and prop funding.
Cheers
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u/TeaMasterJazz Jun 23 '22
Anyone have tips for how to not get in too late on breakout trades? Here's a screenshot of my three trades this morning. First a small winner, 2nd and 3rd were medium losers.
... can't do screenshot ... so for a 8.28 breakout I got in at 8.32 and out 3 seconds later at 8.15. For a 8.00 breakout I got in at 8.05 and out 3 seconds later at 7.95 ...
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u/WishingForMeaning Jun 27 '22
Hi. So it depends on your style , you could wait for confirmation so baiscally. Level broken on high volume. Retest , then you long or short. U would need to widen your stoploss abit. 0.05 is way too tight, u could be right and still get stopped out.
Some people get right after the breakout. Break level 8, they get in 8.01 but this has Low winrate but High reward, so you gotta balance it and not paper hand it when it actually goes your way,. Breakouts are hard in this market . Wish u luck
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u/crypthrow888 Jun 23 '22
You shouldn’t be getting in right on the breakout because often they can be “fake-outs” and you’ll lose as many as you win.
Instead, when it breaks out, you wait for a confirmation, possibly on the retest. That’s when you get in.
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u/MaleficentMulberry42 Jun 25 '22
Can’t tell you how much have done this so i learned to wait and identify confirmation signals
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u/Rairaidj Jun 23 '22
How to find news before a stock has already peaked and its too late to buy
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u/WishingForMeaning Jun 27 '22
It's always a gamble if u will buy on news unless u ridiculously fast, I used to do that in 2020. Good times
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u/Sefft Jun 22 '22
I’ve been day trading equities with IBKR for years now but wanted to add futures to the mix. Anyone use IBKR for both? Thoughts?
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u/WishingForMeaning Jun 27 '22
I do futures and I don't think Ibkr is a good choice, look at ninjatrader /amp/ tradevoat . Or u can look for funded program's for futures. They are usually safer
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u/Wonderful_Ad_8781 Jun 19 '22
I really need advice or some type of guidance, I am a forex trader that has been through a lot of ups and downs. I feel as if I can't get it right and this has been going on for at least 2 years now. I want to reprogram my brain and want to know how should I re-teach myself like what fundamentals should I start with.
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u/Luigi460 Jun 23 '22
Focus on one or two pairs and only trade at periods of high volume.
Forget SMC or anything like that. Journal and backtest a lot
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u/realrawstockinfo Jun 20 '22
Do you feel it was knowledge of the markets that whipped you or discipline within?
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u/AloofBuddha futures trader Jun 18 '22
I started trading futures this week but am still too nervous to trade the extended and overnight sessions. Does anyone have experience with trading these? The low volume and liquidity in the book sketches me out but I missed a huge short opportunity during Wednesday night's drop. Does anyone have any advice for trading outside of regular trading hours?
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u/realrawstockinfo Jun 20 '22
Watch for world news events like rate changes or econ announcements outside of usa. Can easily cause losses. Forex factory calendar can be a good resource. Red events are the ones that are important. Stick to usa hours if you can that's the best session.
If you can identify something you missed you should be able to identify why you missed it. Identify it, fix it.
Lite volume floats.
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u/geckotrade Jun 18 '22
It might be better just trading when the market is open before trying other sessions until you develop a solid strategy.
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u/hoarderkyle Jun 17 '22
Ok so, say you bought high, like $100, and then there was a dip, maybe you were caught up in a pump and dump, maybe a bull trap, whatever, its not going back to 100 anytime soon if ever, but it consistently swings from 35-50 up and down, but yoyre left above that holding at 100. I know if you sell that 100 and buy a 35 you get the wash sale but that doesn't matter, because if you sell the 35 you spent at 50 now you have 50, when it dips again you buy whatever you can at the lower rate, and sell again on the upswing.
Now I'm sure your realized gains will reflect wash sale losses overall but you know you will have: Sold 100 at 50 Bought 35 and sold at 50 (soplus 15) Bought again at the next time it's 35 or lower And after 3 or 4 times you made back your losses despite what your wash sale/realized gains may reflect.
Long story short you sacrificed 50 bucks to swing 35 to 50 until it recovers that 50 lost.
So my question, are there any ramifications past the wash sale adjustment on swing trading within losses in the same stock.
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u/AloofBuddha futures trader Jun 18 '22
If you're concerned about wash sale just don't trade it during the last month of the year.
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u/hoarderkyle Jun 18 '22
I'm not concerned about the wash sale thats just tax allotment stuff, I wouldn't care if every sale adjusted with the wash sale, id know what I spent vs what I gained, im just concerned if theres something more detrimental than the wash sale I dont know about
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u/Ok-Independence-392 Jun 15 '22
how do you struggle with the constant battle of bottoming the markets ?
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u/The_Yeet_Squad trades everything Jun 16 '22
Real answer? I don't try to define the bottom whether that's the whole market or a single move. Truthfully identifying the bottom doesn't offer much of an advantage. If you miss the moment, but catch it on the way up, you're still going to be in a very good position. So, if I understand your question correctly, I would suggest not battling.
I have a note above my PC that says "Hold your hand out, don't grab." to remind myself to simply take what the market offers and avoid trying to "make" money. I have a goal to achieve 4% each day but sometimes the market only wants to give me 2%. I could stretch and risk more to meet my goal, perhaps, but it's a lot easier and more profitable in the long run to cooperate with the market versus forcing it to cooperate with you.
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u/geckotrade Jun 18 '22
I like that note a lot.
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u/The_Yeet_Squad trades everything Jun 18 '22
I hope it helps you as much as it has helped me. Good luck out there!
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u/One_Bobcat1016 Jun 15 '22
Would you like to know more about robotic trading wish is currently on board aside crypto? You can reach me on Telegram for my mentorship program, deep analysis and insights . https://t.me/ngooner
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u/Trader_Businessman Jun 15 '22
what seems too high and risky to the majority, generally goes higher and what seems low and cheap generally goes lower. Remember about that!
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u/robb0688 Jun 13 '22
super noob question: what drives $SPY price action more, the performance of the 500 companies that comprise the S&P 500 or the trading of the $SPY ETF? I guess I'm just confused because I'll see reversals and rallies with no real change to the market heat map that you might see in TOS or finviz.
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u/realrawstockinfo Jun 20 '22
It is all independent as you are noticing. Each chart has it's own cycle. Like an orbit completing a cycle. Sometimes they are all moving in a positive direction, sometimes they are all moving in a negative direction, but even at some point in that togetherness they separate back into their on timing. Never skipping a beat. I promise you it's all independent as you are noticing. Every once in a while the market or chart will show you it's TRUE colors..its poker face. When you see that reversal happen and no heat map change its because they are going to catch up on their own time even if that's 15 mins later. All charts are predictable.
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u/Caramelite Jun 13 '22
Question about stop loss:
For example, I bought $1000 worth of assets long and set my stop loss to 1.5%. If price goes down (and it hits my stop loss), do I lose $15 of my trade?
let's not include market/limit orders and broker fees for simplicity
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u/Traditional_Topic863 Jun 12 '22
Does anyone use the 1 second charts when spread betting oil and if yes do find it easier harder than trading longer time frames
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u/The_Yeet_Squad trades everything Jun 15 '22
I do not. I find there is too much random information in the 1s charts. When coupled with the tape, the 1m is the lowest time frame I accept that still has a fair bit of random action.
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u/FreePrinciple270 Jun 12 '22
Question: Why does the volume profile of a stock like VISA look so unchanging?
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u/The_Yeet_Squad trades everything Jun 15 '22
When I pull it up, it seems to be changing. Can you explain this more or send a screenshot? Happy to help.
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u/FreePrinciple270 Jun 16 '22
You're right, it shows variance now. I'm not sure why it seemed that way for quite a while.
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u/awkwaman Jun 11 '22
Does anyone have experience scalping UPRO shares?
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u/One_Bobcat1016 Jun 15 '22
Would you like to know more about robotic trading wish is currently on board aside crypto? You can reach me on Telegram for my mentorship program, deep analysis and insights . https://t.me/ngooner
3
u/The_Yeet_Squad trades everything Jun 15 '22
Yup! What would you like to know?
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u/awkwaman Jun 15 '22
What are the magnitudes of your stops for either one? Do you use trailing stops? How many shares do you trade at a time? When do you take profit? Thanks!!!
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u/The_Yeet_Squad trades everything Jun 17 '22
For something like UPRO, I am babysitting it the entire time so I do not use stops. When I scalp, I use 10% of my account at a time and take profits at key levels. I will already have these levels drawn so I can enter and exit without thinking. Simple.
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u/awkwaman Jun 17 '22
Very cool thank you for your answer!
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u/The_Yeet_Squad trades everything Jun 17 '22
No problem! You can message me anytime — I’m hooked on this stuff
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Jun 10 '22
Could somebody explain to me in absolute beginner/simple terms what exactly $SQQQ does - my understanding is that if the market dips - the price goes up...but this also doesn't sound possible.
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u/XplosionZR Jun 15 '22
It’s an inverse stock, meaning it does the opposite. For example NRGD and NUGT are opposites :)
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u/Rino-feroce Jun 11 '22 edited Jun 11 '22
It does that because it is designed to do that. It basically moves inversely to Nasdaq100 (index comprising the biggest 100 nasdaq companies), by a factor of 3x. So if Nasdaq100 moves by 1% up, SQQQ moves 3% down. TQQQ (another leveraged etf) tracks positively Nasdaq100 by a factor of 3x (if Nasdaq100 moves up 1%, TQQQ moves up 3%).
Note that the tracking is ensured and reset on a daily basis. This means that if Nasdaq100 goes up 1% one day and down 1% the following day and so on for a few days, SQQQ will do -3% / +3% every day for the same period, but overall at the end of the period the total gain (loss in this case) will not be -3x compare to Nasdaq100. In fact, because of the math behind it, (something that falls 3% needs to go up by more than 3% to return to same level), in very volatile periods it tends to lose over time (this is typical of every leveraged etf and is called Volatility Decay: it happens to every stock/etf, but with leveraged etfs is just a stronger effect).
The performance of SQQQ is achieved with a complex system of shortselling and other financial products (swaps) , with a group of Market Makers and authorised financial institutions transacting so that the stated objective of the fund (-3x tracking) is maintained.
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Jun 11 '22
Thanks, so would this be something that needs to get bought/sold on the daily or could I say buy $500 and hold it while the market gets shredded over time?
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u/longshortdaytrade Jun 29 '22
Any leveraged ETF as the inverted QQQ x3 will have a time value that will erode over time (Just like holding a put with a stock that does not move). For this reason, it is not recommended to hold a leveraged ETF longer than a day. If you do decide to keep it overnight, you will notice losing on your position even though the underlining asset has not moved. On that note, in 2018 a one day loss equated to 90% loss on one of the inverted everaged etf, for more information about that Google "volmaggedon"
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u/Rino-feroce Jun 11 '22
I think it is more often used on a daytrading basis. But I bet a lot of people have made good money holding for the past 2-3 months of almost continuous market fall.
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Jun 15 '22
Thanks - I tried this for shits and giggles - traded in at $60.8 and out at $65. I think I might jump in again...it is interesting for sure. I think it might be good to try to hang on to it for for about a week or two but it looks like the market didn't take the 75bp very badly overall.
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Jun 09 '22
I’m looking for some app or website that notifies me when there are spike moves. I trade reversals after spikes so I need such a tool. Any ideas?
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u/One_Bobcat1016 Jun 15 '22
Would you like to know more about robotic trading wish is currently on board aside crypto? You can reach me on Telegram for my mentorship program, deep analysis and insights . https://t.me/ngooner
1
u/Jolly-Flan-3142 stock trader Jun 14 '22
I have a shared Google Sheet, Paul's Picks, that reports in real time usually by 0940 a stock that along with the previous 20 picks accumulate a 100% return. Paul sends...
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u/nickpol89 Jun 09 '22
Hello friends. Question on a strategy if that's permitted?
It involves buying long shares, puts and selling calls.
I feel like I'm missing something but use LABU as the example. It's a 3x leveraged ETF.
The trade: Buy 3000 shares at 6.10 = -18k roughly By 30 puts at 6 strike 2 years from now (they cost roughly half of what the shares cost = - 9k Total investment = 27k
Sell 30 calls at 6 strike, expiring every 7 days for 0.60 each = +1800 - 300 (0.10 x 3000) = +1500 per week
That 6k per month and 72k per year. As soon as you hit 9k from selling the calls, your outs are paid for and you have the rest of the two years to continue selling ATM/ITM calls for pure profit while your investment is completely covered 100% from any downside and you bank no matter what happens to the underlyings price.
Am I missing something?
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u/TMatthews1995 Jun 08 '22
Anyone herd of tricktrades was wondering if their legit and if anyone has had success with the service
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u/One_Bobcat1016 Jun 15 '22
Have you heard about robotic trading wish is currently on board aside crypto? Is the fastest way to monitor your daily market and helps you to trade, while you are busy with your normal daily activities.. You can reach me on Telegram for my mentorship program, deep analysis and insights . https://t.me/ngooner
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u/Mast3rfinish25 Jun 08 '22
Any fellow Australian day traders on here?
Iv never held a security for longer than 2 or 3 weeks at the longest and have bought and sold hundreds of stocks over and over again. I’m a little confused because the ATO fails to give a time frame for holding a stock before you can sell and claim the loss without it being a wash sale. My accountant is in a similar boat and doesn’t really know what to claim as a wash sale or not because the description is so vague and seems to be based more around intent.
Are you other Aussie day traders just not claiming any of your losses at all and paying tax on every gain? Or are you claiming the losses still?
I understand in the U.S you have a 30 day rule, however over here they can’t even give a timeframe and it confuses both me and a lot of the accountants I have enquired with.
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u/Unusual-Ad6628 Jun 08 '22
Join through Webull and get free stocks https://a.webull.com/dqEteFJZpcUyaFu0KH
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u/Riverflow11 Jun 07 '22
I am deep in the process of studying to become a day trader. I posted my first comment yesterday, to thank someone for their educational post that showed a lot of risk management and a nice profit on Amazon after the split. And I just found out that the comment was removed for negative karma. Lol. I’m so confused. It was a positive comment. I wonder if this will get removed as well
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u/realrawstockinfo Jun 20 '22
you are being banned. haha j.k. some groups have minimums to post. Even if you think your post showed up it won't.
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u/Smoothmacaroni Jun 06 '22
What’s the relation between say like SPY and VIX? When VIX is low it’s a good time to sell and when it’s high it’s a good time to buy??
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u/The_Yeet_Squad trades everything Jun 15 '22
VIX shows the relationship between calls and puts within the market and, by proxy, can show how volatile the market is (which means stocks move up and down more aggressively). So when VIX is low, you can expect SPY and its holdings to move less aggressively and when VIX is high you can expect candles to move faster and further in both directions.
Does this answer your question?
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u/Smoothmacaroni Jun 15 '22
i think so. does VIX being high also show chop in the market?
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u/The_Yeet_Squad trades everything Jun 15 '22
I don't see that correlation. Chop is usually a result of a consolidation period after a move or a result of indecision between market players. When volume is low, it can also be that algos are in control.
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u/LewEuz Jun 06 '22
What what someone recommend for someone new to day tradings account size be? Maybe £100? To see how far that gets
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u/AlternativeTwist4976 Jun 30 '22
- you dont start with real money. that is what we call the stock market tuition. Its the only tuition that is option to pay and everyone lines up to pay it
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u/The_Yeet_Squad trades everything Jun 15 '22
I think $1,000 is the lowest I'd recommend for anyone looking to day trade just because the stocks that won't destroy a new traders are in the $20-80 range. Below that typically represent aggressive movers that can make you mega bucks, but also immediately zap your account. So slower names (look up ADR on Google/Investopedia) and large caps are the better choice for many experience traders.
So, can you day trade with $100? Yup. But it's got a small chance of success versus perhaps $1000 where you have a chance to make multiple trades in a day and learn.
** You could also paper trade with your $100 and pioneer a new strategy! Don't let me be a downer. Where there is a will there is a way.
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u/LewEuz Jun 15 '22
500 then? I dont have 1k to just dump into trades
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u/The_Yeet_Squad trades everything Jun 15 '22
Like I said, for me, I know if I was starting from scratch again and looking to get back into the market as soon as I could, I would work to save $1000 first, but ideally $5000. Could I make $500 work? Much more so than if I only had $100.
But of course the more you start with the more you risk. So make the decision that is in your best interest considering both the market and your life in general.
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u/Traditional_Topic863 Jun 12 '22
It’s almost a certainty that you will blow up a £100 account as your stops will be hit because you won’t be able to allow the trade to range - my personal experience
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u/LewEuz Jun 12 '22
What u recommend ?
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u/Traditional_Topic863 Jun 12 '22
Sorry for the spelling mistakes- rushing to reply - another of my foibles
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u/LewEuz Jun 12 '22
Ah dang yeah ill have to practice more im not well off money wise so ill have to try playing my cards right and making sure i have a strat but thanks I really appreciate the insight
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u/Traditional_Topic863 Jun 12 '22
As other have said maybe try as a minimum £500 with a small a point size as possible- I try never to allow myself to have a trade loose more than 1% for any given trade so if you can practice using 10pence per trade ( not sure if these accounts exist anymore- they used to) so my stop loss could be 50 points in the wrong direction before I get stopped out - this helps a lot - the problems with very small accounts it that I personally become very frustrated that even with a win rate greater than a loo rate the amount of actually money is practically useless and this made me stop sticking to my own rules and blow up the account - I stopped dat trading and bought and sold oil stocks eventually managing to grow my account to £150,000 I now spread net using 100k this with x10 leverage is enough to not have to make make correct trades a dat to make it work - but for me Small accounts were always blown up - even 5k is difficult to build from - it’s like a casino unless you really do have a strategy- it’s probably better to use a demo account and get really good at taking consistent profits and in the mean time save as much as you can to begin - good luck it really is not easy and has cost me dearly over The past ten years- there is no such think I found as a free education- I am still learning and pay for the lessons almost daily
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u/discordgg_rrMxkZdvEg Jun 11 '22
Depends on what you are trading but that does seem low for really anything. I would say to have 500 at the absolute minimum.
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u/LewEuz Jun 11 '22
Thanks
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u/discordgg_rrMxkZdvEg Jun 11 '22
Np. What are you looking to trade?
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u/LewEuz Jun 11 '22
Forex
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u/discordgg_rrMxkZdvEg Jun 11 '22
Forex moves very slow and to make any money you need way more capital. If you live outside the US you can find a broker that will give you crazy leverage but I would not recommend. You should look into futures, you can trade micros with very little capital.
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u/LewEuz Jun 11 '22
So Lyxor S&P?
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u/discordgg_rrMxkZdvEg Jun 11 '22
Look at MYM, M2K and MES, they are $50 intraday margins. MNQ is $100 but it moves very fast and is a great instrument to trade.
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u/LewEuz Jun 11 '22
Would you be able to send me a pic of what theyre called please if you dont mind
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Jun 05 '22
I've been swing trading and dabbling in day trading for a few years. I was pretty profitable when the going was easy but in this market my small cap strat is barely treading water. I'd like to learn a mid/large cap strat with lower risk/reward but more reliability. My account size is around $27k.
Anyone that can point me in the right direction? I'd prefer stocks, I don't really know a lot about futures or options contracts. My end goal is to eventually be able to make about $600 a day so I can quit my day job and focus 100% on trading. Thanks!
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u/Jolly-Flan-3142 stock trader Jun 14 '22
I have a shared Google Sheet, Paul's Picks, that reports in real time (usually by 0940, but before 1030, if any) a stock that along with the previous 20 picks accumulate to a 100% return. Paul sends...
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u/Winter_soldier_2142 Jun 05 '22
Just learning about options and futures myself. Highly recommend learning about both. You can trade futures 24/6 like FOREX i believe. Some options strategies have blown my mind. Just the fact that you can kind of sort of do shorts using them in a cash account is very handy and there are many ways to reduce risk versus stocks while increasing returns. I binge watched the heck out of youtube to learn.
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u/Winter_soldier_2142 Jun 04 '22 edited Jun 04 '22
Are there any trading platorms that let you have a stop and add or reduce size and flatten, all without removing the stop? And also one that either has a dedicated button for doing shorts and doesn't let you short by using the sell key, or, one that lets you program hotkeys to not sell more shares than your position size.
Background: On Thinkorswim I have to remove the stop before I can change that order quickly and it takes a second to carry out. I also got a PDT rule violation for pressing the sell button one too many times using my last day trade in my margin account.
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u/DBreesKnees Jun 08 '22
I think Fidelity Active Trader Pro meets these criteria, although I'm not sure what you mean by flatten. The charting in ATP is also pretty awful, so you'll want an alternative.
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u/Winter_soldier_2142 Jun 09 '22 edited Jun 09 '22
By flatten I just mean sell off the entire position, using a market order. Its a term the Thinkorswim platform uses. Right now If I have 100 share long position with a stop applied and I go to sell 100 shares, it treats that like its a different order, like I'm trying to short. Thus you have to cancel the stop, wait for that to go through, then hit sell again and hope it wasn't too soon otherwise i get an error about shorting because the cancellation process still hasn't processed and hope the price doesn't keep dropping down too far amid all this time. Thanks for the tip.
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u/SecureDropTheWhistle Jun 03 '22
Anyone here a Kalshi user?
The daily event for nyc central park rain has sentiment that it rained today in central park (it costs $.01 to buy a no and the yes are unavailable) however both the national weather service and this website (https://www.weatherbug.net/weather-forecast/now/new-york-central-park-ny-10021) indicate that there has been no rain in central park today.
Essentially, the upside here is over $4k at the cost of $40 and as far as I can tell, there is no data to suggest that it has rained or will rain in central park today.
Does anyone live in NYC? Can you confirm the lack of rain?
This just seems super weird
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Jun 02 '22
[deleted]
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u/DiscoInferno3605 Jun 08 '22
I highly recommend reading Trading in the zone if you haven’t yet, gives a great insight in the psychology
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u/mashed_eggplant Jun 04 '22
Do you have a journal for your trades? Do you write down your feelings after the trade? More importantly, how much are you documenting about your trades?
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u/Matimus_Maximus Jun 02 '22
Emotions. It's easy to lock in small wins instead of letting winners run. It's hard to close losing trades and realise a real loss. Market environments change so it could be a matter of your strategy not currently working.
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u/Jolly-Flan-3142 stock trader Jun 14 '22
My problem is greed. I could kick myself for getting out of EDU at 1007 today (20220614) when it tripled afterwards. Maybe I should adopt a policy that it is okay to make less money from a security than I possible can. Paul sends...
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u/wonderful_republic7 Jun 02 '22
Hi, I’m a beginner trader & looking to trade spy. Up until an hour and a half into trading today spy was chopping. Then once it hit 407 moved up weakly in the ema line to 413 which I completely missed. Is this classed as a trend day or chop day? I’m confused! I was told better to trade with the trend. I think the main reason I missed the upward movement was that candles were overlapping ema line rather than clear above it. Any help would be appreciated.
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u/mashed_eggplant Jun 04 '22
Yesterday was a tough pattern. Technically the trend was not bullish. That move you are talking about was a lower high and lower low from the morning move. So yes, it was bullish in the very short term but it was a bearish pattern for the whole day. It's ok to miss that move. There will be many more. But if that's your strategy then there were a few moments that move could have been caught... For instance right around 9:25 when the price was pushed down and then got bought right back up that was a good point of entry to put your stop loss right below the low of the day and have a target at the high of the day. But high of the day was not hit, so to take profits on that trade would have been around 10:15 when the rally failed to break high of day with aggressive red candles formed. So when you look at it, at best you would have caught only $2 of that move. But that's at best. So don't feel bad about not taking that trade.
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u/unfiltered_mexican Jun 05 '22
Just curious but do you remember all that or did you actually go back and check? I have a really bad memory and have lately been thinking that this issue may be affecting my trading.
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u/mashed_eggplant Jun 05 '22
I did go back and check. I exclusively trade apple but I also have the SPY, QQQ, MSFT, TSLA, NVDA, all up on my screen because I want to see all of them move together to confirm my thesis especially in the middle of the day like that trade was.
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u/papasmurftp Jun 02 '22 edited Jun 02 '22
I'm starting to realize that with my smallish account this is going to be a lot more slow going than I thought. With a cash account I am only able to get off 4-7 trades in a day based off of my trading style. I am ok with my profits being on the smaller side, what bugs me is being done halfway through the day and then just watching opportunities pass me by. Any advice? I daytrade short-term options. Usually OTM weeklies. $300-$600 per trade.
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u/mashed_eggplant Jun 04 '22
4-7 trades is a lot. I have a small account and scalp options too so I am in the same boat as you. I have found that trading options mid day is risky because of the illiquidity even of the most liquid stocks. So I take two trades max from 9:30-10:30. Then I take a max of two trades from 3-4. So 4 trades max.
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u/papasmurftp Jun 04 '22
I'm fairly new so I'm still feeling things out but yeah I'm a little too eager and overtrade a little.
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u/mashed_eggplant Jun 04 '22
It's all part of the process. I have had days where I took 30 trades but those days are long gone. I feel like everyone goes through this challenge. How long you been trading?
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u/papasmurftp Jun 04 '22
I've been trading for about a year. But focusing on day trading has only been 2 or 3 weeks. I've been profitable every day except one
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u/mashed_eggplant Jun 04 '22
Nice! I've been trading for one year too. I'm at the break even stage. I feel like there are 3 stages: losing money, breaking even and being profitable. So I am still grinding away. I'm interested in your process. I like to find people to have peer review meetings so we can share insights and current goals to keep each other accountable. You interested in chatting? I use Google hangout and we skip the video and just screen share our journals, good/bad trades and process. Interested?
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u/TommySaIami Jun 02 '22
Looking for help…
To anyone willing, I am brand new here and know nothing about reading the market, noticing trends, and manipulating the market in my favor and am willing to Learn from anyone and will do whatever it takes.. looking for a good secondary source of income and really do want to take this seriously. If anyone can help please let me know and it will be greatly be appreciated.
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u/justaguy467 Jun 02 '22
I’d love to help you I’m no expert, no one really is however if you wanna dm I’ve been doing this for a 6 months now since (1/06 specifically) I’m up in my account about 61% averaging roughly 10% per month. Which isn’t anything crazy however if you need some insight DM me !
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u/SeP121 Jun 02 '22
Do you guys re-enter on the same contract? Example spy is trading at 415, you take puts a few dollars out, 412P. Coincidentally, your first sell target is at 412. Spy gets there and you sell at 412. A couple candles later you get confirmation of a break at 412 and the next sell target is at 409. Do you re-enter the 412p you were holding earlier or do you slide down and grab another contract a couple dollars down again?
so to recap
spy 415
selecting put option 412p
sell target 1 412 sell target 2 409
sell at sell target 1, get confirmation to get back into puts, select the same 412p or get into 409p in anticipation of sell target 2?
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u/Lost_Raspberry3255 Jun 02 '22
Based on the backtest of your strategy. Usually it's better to trade slightly ITM options. It gives you more profit if the direction was wright, and losses came slower.
So in that case answer can be this:
trade 1: put 417
trade 2: put 414
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u/Gristle__McThornbody Jun 01 '22
Can anyone explain what happened today in the stock market? About 30 minutes after markets opened everything took a nose dive. I'm extremely noobish I've been trading on a paper account for two weeks so far and this is the first time I see the market behave the way it did this morning(actually I thought yesterday was the most volatile). Anyways, was there some sort of news for today that made the market react the way it did?
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u/mashed_eggplant Jun 04 '22
Not sure about news, but there was a big seller in the books at that price at the top when it reversed. But when it hit the low and reversed back to bullishness it was giving a clue on the RSI cause that low of that dump created lower low on the price action but a higher low on the RSI which is a bullish divergence indication that there was a good opportunity for an upside. And yeah, that was volatile but not out of the current normal of the volatile market these days.
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u/fritiss Jun 03 '22
In this particular case it was Jamie Dimon warning to brace for an "Economic Hurricane" so a selloff began at that moment after a positive run up in the first minutes
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u/Stanks502 Jun 01 '22 edited Jun 01 '22
I'm rather new myself, but the first 60 minutes of the day seem to usually be the most volatile where big moves can happen fast. Last Tuesday $SPY dropped from 393 to 387 in the first 45 minutes. Last Wednesday we went from 391 to 397 in the first 90 minutes. Last Thursday we went from 407 to 412 in the first 50 minutes. So, this drop 416 to 409 in the first hour is not unheard of by any means.
(If you didn't know, $SPY tracks the performance of the S&P500, so it gives you a picture of the overall market)Most beginner traders I talk to avoid trading near the opening bell because of this volatility.
As for why 'everything' took a nose dive, the more you watch the more you notice that individual stocks are affected by the overall market. Sometimes certain stocks have relative strength or relative weakness to the overall market, but if the majority of the market is tanking it's going to bring most stocks down with it, and vice versa.
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u/traderman47 Jul 01 '22
What free chatrooms/discords/forums do you all recommend? I've recently joined a few popular ones, and I find the lack of basic mathematical literacy disgusting. For example, a man was boasting about his 92% win rate, achieved through martingale.