Thread by @daarkmaagician

Trading is a marathon, not a sprint. A thread:

#StockMarket #Tradingtips #OptionsTrading #tradingpsychology #FollowTheMagician

Mental vs financial capital. ~80% of trading is mental, ~20% is charts. Have rules and do NOT break those rules for one trade.

A lot of people blow up their accounts because they attempt to 10x their entire portfolio in one week or worse in one single trade. Don’t treat market like a casino. It may take few weeks to couple month so build up. “Pay”tience is a virtue.

Really count how many trades you are doing during a given week. There are folks that do tens or even hundreds of trades just to break even, or worse lose $. If you do 50 trades and can’t make back ~20%, step back and re-evaluate what your doing. Have a journal or spreadsheet.

If your a retail trader, LEARN SIZING. When trading options, start small (1-2 contracts at a time) and first make consistent 20-50%+ returns. If you can’t do that’s with 1-2, then why continue to buy more. Get a hit rate going and understand how to “trade” instead of gamble.

Preserve your capital. I tell folks to NOT use up your entire capital / buying power on literally the first day or worse the first HOUR of the week!

If you are putting too much into any one position or multiple positions and not leaving cash on the side you run the risk of feeling/being trapped in a position with no means of applying leverage to improve your situation when the opportunity arises.

This becomes a self fullfilling prophecy as feeling trapped leads you to hold on to a position you should have cut much sooner and diminishing your overall available capital.

“The Chase” when stocks are running and you feel FOMO, ask yourself, if YOU were in a trade already, what would YOU be doing? Taking profits or letting your trade run? This is very, very important to learn. If a stock is strong, you will get another crack at it. Wait for pullback

Do not trade every single day. If your having a bad week, it’s ok to stop, take a break, and do a mental reset. Market is not going anywhere.

Here is a good visual tool you can use

If anyone has anything you wanted to add from your trading journey or just general tips, please feel free and reply. Ty