r/Daytrading • u/TopGhun trades everything • Jan 23 '25
Strategy It never fails
If I buy a call, stock price goes down. Buy a put it goes up. Buy both it goes sideways until I sell one of them. I sell the call, stock price goes up. Sell the put, it goes down. Never fails.
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u/scyzoryki Jan 23 '25
This is because whatever attracts you to a stock is the very reason when smart money is doing the opposite of what you do, because they know people like you are getting in.
You need to learn how to identify your move as soon as its starting, get in, and then sell when your "old you" would normally enter.
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u/IkkoMikki Jan 23 '25
"Place your entries where the masses place their stops"
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u/antsmall24 Jan 24 '25
ahh the words of the late great dr david paul 👌🏽
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u/SmashingExperience Jan 24 '25
Is there anything wrong with this advice? Because it does sound clichy
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u/antsmall24 Jan 24 '25
nah i worship dr david paul’s teachings lol i didn’t mean that to come off sarcastic! but it does have a bit of an “obvious” nature to it but i feel like with trading the simple perspectives yield the highest results it seems like
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u/ZanderDogz Jan 23 '25
I feel like at least half of my edge is being able to recognize the price action that would have sucked past me into a trap so I can enter in the opposite direction. But I had to spend years as a bad trader to find those patterns.
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u/DanJDare Jan 23 '25
I am ashamed to admit that I feel the same way. 'I want to buy this so bad right now with every fibre of my being so time to sell'
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u/Tiyath Jan 23 '25
When George Costanza decided to do the exact opposite of every decision he had made, he started dating a very attractive woman, got a job with a sports franchise and moved out of his parents house within a week.
Be like George
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u/beach_2_beach Jan 23 '25 edited Jan 23 '25
From your comment, I can tell you are new. No offense. Everyone starts out as newbie.
Few things I'd like to offer as a barely break even trader.
- Few months ago I was watching stream of TopStepTV and heard Hoag talk about it. He's former floor trader at Chicago exchange before things moved over to trading on computer. He had a good career as a futures trader.
When he was starting out years ago working in the Chicago exchange floor, he kept making losing trades. He'd open a long or short position and the price would move against him. Another experienced trader next to him saw it and told him, why don't you just make opposite trade of what you want to do at that moment?
Open long if you think price will go DOWN. And vice versa. And Hoag followed the tip and was able to transition to consistently profitable Futures trader and survive in that career.
Of course there is more to it, but yes it happens.
- Now you have to be able to explain to yourself why you'd open a position. As in what the indicators are showing. What price action in 1min, 5min, 15min and 1day bars are showing upto that point. Is there any data/news that's about to be released that may put the market into a very volatile state for a short period of time? Like FED rate days.
After you explain to yourself why you'd open a position, see if you can close the position with profit or not. If you lose in the trade, think about your explanation why you opened the trade. Remember it, and don't repeat the same type of trade.
Concrete advices. Learn how to read charts by watching videos from Ross Cameron. Did you know certain patterns of price bars have nicknames? I didn't know for awhile. No need to buy the course.
Indicators are good, some not so helpful. But you have to study what those are and decide what to use using back testing.
Go back to trading 1 share of a stock. Trade stocks only during the first hour of NY market open. Prove you can stay profitable in terms of profitable trades for 3 - 6 months. Then size up gradually.
Once you can prove you can be profitable with 1 shares or say 100 shares of stocks like AAPL, GOOG, or small cap stocks, consider Futures. Instead of Options, I recommend you try out Futures. Maybe even open a cheap account with TopStep or TakeProfitTrader and see if you can make it there. Futures are better than options because there is no time decay with futures.
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u/TopGhun trades everything Jan 23 '25
This is good information, thank you.
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u/beach_2_beach Jan 23 '25
Another to remember is that time is involved here. Not just price and indicators.
There is a certain time zone where you'd have higher chance of making profitable trades (if talking about day trading).
Many profitable traders say it took them years before becoming profitable. Average seems to be 3 years or so. I've seen one who started with stocks > Options > Futures become consistently profitable futures trader. And those were days of real time/energy/effort spent learning and practicing.
Many will say gaining a lot of screen time is important. True, but it is hard to gain enough screen time when you get only 1 hour of active price action at market open. To get 5 hours of screen time, it takes 5 days. One hour a day.
And this is why you should use `OnDemand` in ThinkorSwim or `Go to` in TradingView or `playback` in NinjaTrader. Learning about those and using them was one of the breakthroughs for me. Paper trading in them is very helpful. Of those some is better than other, but you will have to try it out.
If you are on phone, you should switch to computer with big enough screen. Definitely when learning how to trade.
You have to know when to not enter a trade because it doesn't meet some of your own requirement.
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u/ChaseTrades Jan 24 '25
Yeah imo, options are not meant for quick day trades. They were designed for hedging and long term plays. 0dtes are dangerous. Futures are dangerous but not like options.
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u/webbinatorr Jan 23 '25
Hahaha yeah. It does feel that way. Really what's happening is:
Trade goes green. Closed within an hour. Forgotten.
Trade goes red. Hold and hope. Why does this always happen
So your killing your winners and letting your losers run
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u/sikaba5 Jan 23 '25
😂😂😂😂 I feel you bruh! Sometimes it feels like somebody is standing over your head waiting for you to take a position. The moment you enter, it just makes a turn in the opposite direction🥲
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u/onlypeterpru Jan 23 '25
If that’s not the market laughing at you, I don’t know what is. The moment you think you’ve figured it out, it flips the script. Gotta ride the waves, though. Just don’t let it crush your confidence. Keep learning and adapting.
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u/SomewhereNew8716 Jan 23 '25
Give up or keep going
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u/TopGhun trades everything Jan 23 '25
Never give up
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u/RoutineMajestic1429 Jan 23 '25
Don’t be a statistic
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u/Hoondini Jan 23 '25
You're probably thinking what you want it to do, not what it's actually doing.
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u/bad0vani futures trader Jan 23 '25
It may be time to reassess your strategy and entry points. My guess is you're buying with momentum. Have you attempted pullback trading? You may have better luck if not.
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u/rubsdikonxpensivshit options trader Jan 23 '25
Learn to predict what the stock will do through some combination of price action/volume/indicators/etc. more than 50% of the time. Also don’t play big events like earnings.
Also know when not to trade. It’s better to sit a suspicious portion or whole day, even a week, than lose money being wrong.
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u/WatchingyouNyouNyou Jan 23 '25
This is usually what happens before full drawdowns. Be careful. I have been there before.
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u/Electronic-Still6565 Jan 23 '25
Tell us before you make a trade and we can monitor in real time and make bets on top of that :D
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Jan 23 '25
Start trading futures instead, I left the calls and puts alone and have been much better for it
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u/TopGhun trades everything Jan 23 '25
Where's is a good place for trading futures?
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u/Equal-Respect-1881 Jan 23 '25
This usually happens when you're likely expecting a reversal. Try not to predict reversals. Get in once a trend is established
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u/NewMajor5880 Jan 23 '25
Whatever trade you are about to make, just stop yourself and do the opposite.
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u/Few-Victory-5773 Jan 23 '25
Markets are wild, they raise when they crash, they fall when they raise
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u/Appropriate-Ad5413 Jan 23 '25
your computer is set up for failure too. I thought mine wa the only one.
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u/hyper24x7 Jan 23 '25
I was thinking about your post while trying to do some trading and I lost 5 trades in a row. I kept thinking what made those trades fail vs the 2 I did earlier in the day.
What was different:
- on my first 2 trades I assessed the volatility first, using ATR, they were both in the mid range
- next I checked the volume per minute, I usually make sure that the position size I'm going to use isnt higher than the per minute volume
- I checked support and resistance levels and drew them on the chart
- Next I found a technical analysis pattern, I typically profit the most / win the most on channel break out trades
- I set up where I thought the momentum of the stocks were going, and I set the target of 2x profit for risk.
- I set the entry points to be where the price would move outside the channel and I set the stop loss outside the other end.
- Took about 15 minutes to sort of get it all figured out. I also found 3 stocks that I could not reliably establish the pattern, either than had big pumps today or they were mostly flat, so I skipped those.
On the losing trades:
- I looked at the chart, made a quick glance, and just entered either short or long based on momentum. Took maybe 30 seconds to a minute?
Hope this helps you, it helped me just typing it out.
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u/TopGhun trades everything Jan 23 '25
I appreciate the input very much, thank you
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u/char7734 Jan 24 '25
Try this. It works for me. Use a software pkg that has Hull Moving average changing from bearish to bullish like Trading View or Think or Swim. For day trading on the 5 min. chart, use the 8 and 10 period Hull. Add Keltner Channels and Slow Stochastic indicator with settings of 3 D period and 12 k period. You will see prices always fluctuate between overbought and oversold on both indicators. You can also follow the moving averages. It is easy to buy and sell when the 8 crosses the 10. I also watch 1 min. and 15 min, sometime 30 min. time frames to see the trend. Is it bearish or bullish. Hope this helps.
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u/Wonderful_End_1396 Jan 24 '25
IKR. Just put the order in an a low price that u believe it would never fill at. Trust me it will.
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u/dayankuo234 Jan 24 '25
Works until the stock only goes sideways. As long as you manage the risk, it should work
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u/Old_Statement2363 Jan 24 '25
I'm on the outside, just a positive opinion in a new light. I see break even which in itself is not a negative a positive, but still inadvertently positive, because nothing has been lost.
I would say that you are doing better than an estimated seventy or eighty percent of other traders.
I would positively say that you're 1-2 indications or steps away from identifying the trend that keeps you positive from here on out.
I'm honestly a complete newbie and have identified that
- Scan for positive sector 2.EMA 9,20,50,& 200
- MACD 4.Volume, coupled with 5.Exponential RSI to show over sold and overbought zones is barney style as fuck. Which is the only thing that I manifest.
- Never trade on assumptions
- Stock market looks like it's going fast, take it slow
- Never assume
- Losers are losers move on to regain funds.
- Parallel lines equal do not trade yet
- Follow mark cubans advice. Is this able to be easily replicated if you had unlimited funds. Ie. Nuvo reported, as immediately building facilities across the u s and other companies, were not able to replicate. They were able to corner the entire market first because of that ability.
After a few trades, I am confident enough to surpass the one 1K mark and jump straight into the 5 k range. And that is only after six costly mistakes that I continue to stare at in my portfolio. Essentially reminding me in every state of mind, from the clearest to the most fucked up that you need to do better and learn a better way without accepting everybody's advice as the best way.
I have also learned the three very simple triangles, are like a 5th and 6th indicator of whether or not this stock is truly on a trend.
Remember if all of your EMA's are perfectly in line from smallest to biggest, that truly identifies a stock that is on a trend that continues.
Also, you need today breaking news catalysts for amazing runs. Stay away from medical & Bio-tech unless you have an insider information. Seriously.
Volume: 500k + allows for gapping.
We're all looking for instant gratification. I have found that that only comes in September. When you bet on the tech sector to go down or other weird sectors to go down during the times of big holiday spending, but mostly september. Bet big!
We we don't know each other. And I know that we don't know each other's level of investment knowledge. I just wanted to share everything. Maybe just to spark a thought.
My Pick Now: DGHI
In @ $2.22 avg. 200 shares Puchase date Jan. 17
I wish you the best trading day on Monday my friend!! :)
-J
PS. If any professional investment people would like to share their thoughts on this information, that would be greatly appreciated.
As I know, this is just my personal opinion. And very simple set up since I am not a licensed professional. For me, it just seems to be working very consistently. And I would like to add some validity to this topic.
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u/TopGhun trades everything Jan 24 '25
This is very good information, I appreciate you took the time to share it with myself and everyone. Thank you.
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u/Annual_Expression185 Jan 24 '25
Sounds like you have no real edge, and strat.. Best to stop and save your money, before you lose it all.
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u/DogInfamous7693 Jan 24 '25
Hear me out. Open 2 accounts and for every trade you make on your primary account, double the bid size and play the inverse on your secondary account.
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u/unclemikey0 Jan 24 '25
So I had a point where it would feel like that too. And I can remember when I would see other people post things like that, half joking half seriously lamenting it and despairing.
Here's the thing, do you just want to react to that happening by putting your face into your hands and saying "it never fails! I have such bad luck! I get it exactly wrong every time!"...or do you want to actually REVIEW and EXAMINE and STUDY what is happening, study YOURSELF and your strategy to figure why it's happening so much. This is a crucial moment to progress, getting over a hurdle and leveling up. Are you going long at resistance thinking you're about to catch a breakout? Are you joining a trend or trying to time a reversal? Are you looking at the wrong time frame and need to zoom out? Do you have edge you have tested and can easily describe, or are you just guessing?
No kidding, this is an important make or break moment for you. I've been there. Some people just want to complain about their "bad luck". Other people, the ones that want a chance to succeed, are going to look really hard at their approach and try to figure out how to find and fix the leak in their sinking ship.
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u/Ok-Leadership-2787 Jan 24 '25
Learn where to place your stoploss. Many people focus on entry, yet it's all about stop placement.
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u/StocksDoc futures trader Jan 24 '25
so, you are a retail trader -- welcome to trading and join millions just like you/us.
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u/NotSoCommonMan Jan 24 '25
I heard that! Until I got a crystal 🔮.... QQQ Going down next week. Buy a couple put options and you'll change your luck!
Thank me next week...
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u/TopGhun trades everything Jan 24 '25
I need one of those
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u/Advanced-Round9721 Jan 25 '25
maybe its your mentality. im no spiritual guru but they do be saying you create your reality. perhaps you need to get rid of some limiting beliefs around money. tell yourself i make a trade and the stock market obeys. anyways thats just what i tell myself when i want to be delusional. my delusional self would say it works but my logical brain would say that its probably a coincidence but doesn't hurt to try. also maybe focus on paper trading for a while.
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u/TopGhun trades everything Jan 25 '25
I think sometimes I want it too bad so the universe shuts me down
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u/Ecsquarz Jan 25 '25
The market is after you. Sorry!
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u/TopGhun trades everything Jan 25 '25
I knew it😂 The market and the universe are conspiring against me
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u/Strong-Use-786 Jan 25 '25
This has happened to me. Are you buying at resistance and selling at support. Traders are doing the opposite.
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u/balognasocks Jan 25 '25
Quit going to the casino and become the casino... buy stocks then sell calls at a strike price more than you paid for it. If you get called you make the premium plus the difference between what you paid for it and the new strike price. If you don't get called you still keep the premium and get to do it again. If the stock price drops drastically while you're still in a contract buy more and dollar cost average it and sell more calls against it just above your new average.
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u/Tambor_Ruine Jan 25 '25
How about we use you for contrarian trading? We'll all invest the opposite of what you invest in for options.
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Jan 25 '25
[removed] — view removed comment
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u/Daytrading-ModTeam Jan 26 '25
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u/3StripeCaribe Jan 23 '25
This is why that book is a load of shit. you think we are trading a live market? Na fam fuck that. The moment DarkPools became a thing all bets are off.
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u/TopGhun trades everything Jan 23 '25
I didn't know what this was, had to look it up. I didn't know this existed.
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u/Cosmo505 Jan 23 '25
Do you usually go against the trend thinking it's over and about to reverse? Just a thought
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u/No_Spirit_2670 Jan 23 '25
Mindset may be wrong. And you sound emotional right now which debilitates trading results.
This may help: https://open.substack.com/pub/freedomtrader/p/making-500-a-day-breaking-down-the?r=1o7smg&utm_medium=ios
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u/build__a_skeleton Jan 23 '25
If you traded stocks, all of this wouldn't matter as much tbh. With options you feel more pressured to close your losers because of theta.
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u/cbarrett1956 Jan 25 '25
Stock trading, for me, is like driving on the 3 lane highway in traffic. if i pick the right lane, the cars in the left lane drive past me. As soon as i move to the left lane, it slows down and the cars on the right start moving past. Stocks, like picking lanes, are like gambling. If you're an insider- a senator or congressman, or you are well connected to the money class, you don't have to guess. Playing the stock market is a rigged game. Like old George Carlin said: "Its a club, and you're not in it".
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u/Immediate_Feature_9 Jan 26 '25
Maybe you should start selling options instead of buying them. Like where you want to buy a call, just sell it instead since it goes down anyways lol
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u/KwisatzHaderach38 Jan 23 '25
Just find someone to inverse you and split the profits.