Brewmaster said:
$30,000 Millionaire said:
A thought on trading psychology. I am not sharing this to brag but because I want you guys to understand.
I'm up 40% on my trading account since April 15. I'm 19/20 green on non lotto trades. I am starting to feel like I can't lose. That's a dangerous feeling for a trader.
I'm going to take a few days and really size down.
Can you enlighten us? I had a streak like that ages ago, but I've been quick to take profits and slow to cut losers lately.
No magic,
Just took the setups that have been there with predefined risk prior to entering:
1) I knew indexes were likely to go up and I traded 0-5DTE SPX calls off that belief. I won't get into strategies, but as usual, I decide up front if I am scalping or shooting for a target. With 0 DTE, I tend to scalp and take profits quickly. With time, I am obviously more patient.
2) SHOP, NVDA, TSLA, NFLX, GOOGL, and AMZN have been volatile as of late and have been good to day trade. Just NFLX has been 15%. For day trading, I look for supply breaks with volume or demand holding as entry points. Supply breaks have been exceptional to trade in the last month.
3) I don't trade between 11 - 1 central time, no matter what. I'll close things, but I won't open positions
You won't be slow to cut losers if you know your stop in advance before you enter and you know your target / plan. If you trade smaller with wider stops, you'll be more successful.
You don’t trade for money, you trade for freedom.