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I just re-read my post and it seemed like a personal attack. I didn't mean it like that so I apologize.
As far as I know futures...which is limited...you are correct. But OPTIONS are multidimensional and and most retail have a limited understanding of how they work. I just think it's a bad idea to go on a forum full of retail traders and recommend selling premium.
Maybe notional value is a better way of putting it.
I'm not offended.
You're over complicating options. They're fairly straightforward.
And I disagree, I think it's a great idea to inform people on the subject, and to understand you don't always have to make directional, un-defined risk trades.
Every veteran trader knows everything about the markets, wether it's options, or calendar spreads. Don't sell yourself short by not understanding everything the markets have to offer
I’ve mentored a lot of traders over the years and what you’re experiencing is not uncommon. Here is some of the biggest and usual culprits. First, most traders NEVER realize how synced their performance is to general market movement and volatility. Most usually do fairly well during strong directional markets / trends and increasing volatility but struggle when the market is going sideways or against what they are trading (unless future or stock has a specific exogenous catalyst). And struggle when the VIX is falling or below 20. This demonstrates, in essence, a ‘market model’ which most don’t’ have and could benefit from. Marty Zweig and Ned Davis both wrote some good books about various market models / market timing.
Second, most trade the hard pennies (ranges, choppy trends, difficult contracting patterns, etc.) instead of the easy dollars (strong trends, identifiable trends, obvious turning points). Prices consistently cycle between expansion and contraction. The time to be aggressive is during expansion and cautious during contraction. One must look for this on multiple time frames. Also, they take large / high risk breakout entries / wait for maximum confirmation instead smaller risk pullback entries or aggressive trend line / range break or range retest entries. Most over trade and trade too large. Position sizes that are too large make discipline extremely difficult and nearly impossible to sit through small, normal lateral consolidations / pullbacks... so they choke the trade.
Third, you don’t need anything fancy just price and volume, some simple trend and range lines. Most people make it unnecessarily complicated. They also jump from strategy to strategy. When I look at your charts I see some very common mistakes. I marked a few up with simple concepts and hope it helps. I also have tons of trades and free educational stuff on my own private website (ZazenCapital.com) maybe it will help or at least give you some ideas. Simple things like retests of swing highs and lows, pullbacks to trend lines offer solid info that can improve your trading. Moving averages can also be helpful tools.
Most I’ve worked with don’t really understand price and trend structures, so they don’t have any idea what they are seeing on the chart. Their focus is so myopic, just on their one little piece of the trade instead of ALL the surrounding context around their “setups”. Additionally, most don’t even come close to having a REAL trading plan or even a specifically defined setup / repeatable methodology. Not a single trader I’ve worked with, no matter how ‘together’ they thought they were, came to me with a clear ‘If / then” setup, trading plan or market model.
Now obviously I’m not saying you make any of these mistakes. Just pointing out common ones I’ve observed that hinder performance…. and hoping some of this info helps. Best of luck ;-P
What you got is what you deserve. This is tough business. Welcome
This is WHAT YOU SHOULD HAVE to be successfull trader. 75% of this MASTHAVE
I bet you cant play this game. Also you cant manage your Emotions and mind. This is why you failed. Lesson to learn.
You need to cover Order Flow and Psychological stuff to succeed in this game.
Trading: ES+MES+TechStocks as of 2022 Previous: ES GC CL [4MES2ES as of 2019MAY] and [4MGC2GC as of 2021JAN]
Posts: 454 since Jul 2014
Thanks Given: 281
Thanks Received: 389
I was "YOU" ten years ago, but sadly... I didn't even know about FIO aka BMT forum back then to find help and support.
You are not alone, Old Saltie already has given you an excellent technique to start learning and Bob already suggested many reasons why you should become an Elite member. Just be able to download some of the indicators from @Fat Tails would save you half the time requires to do homework because E-Mini tends to back-fill, test, and retest key levels.
Algo or HFT programs are running at more than 80% in NYSE session... whole different GAME now... new NORMAL is NOT normal... not to mention about "Artificial Intelligence in Markets". Think not only Volatility but EXTREME Volatility!
You are the only one who can decide to continue or not, but know that if you continue then you are at the beginning of the journey, so give yourself time to learn.
If you ask FuturesTrader71, how long does it take to be profitable ES Trader? He would say it takes 5 years... the same number of years that a pro-Trader told me during my first year; I didn't really believe it then but I do now.
Speaking of homework, here are my new "Actionable Journal" and couple charts to show how the Bears lost their battle with 2592 Line In The Sand.
Just to show "less is more" and "trade it & forget it" from RTH 30M Chart for a SwingL2535; interesting where it stopped at EOD with 2677.75 as HOD.
Could be a decent pullback as Crude Oil is rolling over to March contracts, huh?
Find the missing piece of the puzzle... Let's be amazing, be awesome in trading today!
iTS