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MapleStax

21 Nov, 15 tweets, 5 min read

How I trade Options at market open!

🧵 A THREAD 🧵

Simple and detailed explanation on how I approach my executions each morning.

1. Each morning I will chart out the channel that is presented in ext hours. This provides me clear levels to take Calls/Puts off of if price were to reject/base. I gather my contracts I am interested in and have them ready to execute for open.

2. Prior to open I will chart out any Supply and Demand zones where I feel confident participants in the market are present. This gives me more strength when selecting contracts and confirming my analysis of the current trend.

3. I then look at what contracts are in the opposing zone that is a realistic target to be met. One of my favorite setups is taking a trade from zone to zone and leaving a portion to ride.

4. Contracts I consider: 1-3 OTM contracts closest to ITM. Remember to always gauge the strength of the trend and to not be greedy. Take gains on large rallies, sell in to strength. We want the meat of the move, not tops and bottoms.

5. If we reject off the top side of the channel, I am executing the Puts I had ready. If we bounce off Demand/Support then I am playing my desired Calls. In both of these scenarios I have a tight stop if the Support/Resistance level breaks to the opposing direction which I favor.

6. When the contracts do go towards my desired direction, I will scale according to plan and in regards to price action. The goal is to let contracts ride and lock in big picture moves. Don’t lose yourself to greed or “what if” scenarios. Take your profit, do what is consistent.

7. It is better to be reactive than to try and predict the top/bottom of a reversal. LC options are forgiving in the fact that once a trend is discovered, it typically will remain intact. Always mark your pivots to see the trend clearly. HH/HL/LH/LL

8. Note: If the channel is broken and based upon (retest) then I now know that price action has truly broken out and that level will now be used as support. This is where trading the trend comes in handy. Don’t blindly take contracts.

9. Always ask yourself: “Who is currently in control of the trend?” This will challenge you to always question whether or not you are playing in the correct direction. Fighting the trend will always be a losing battle.

10. Lastly, this is one of the most important aspects of trading. If you’re wrong, then admit to it and cut your loss. Cutting losses quickly is a skill that all profitable traders must learn at some point. Be open minded, not stubborn.

11. For the Visual Learners #ChartHashira

@AyaanScalper

12. I want to thank all of my great friends who have helped me along the way trading Options. Please, give them a follow: @AyaanScalper @RHODESA123 @DrBullShark @ShinobiSignals @CaryPalmerr @MrRobotoTrades @InarGG

13. Patreon Daytrading/Swingtrading Education:
Patreon.com/MapleStax
Patreon.com/MapleStax

Live daytrading each day and answering questions:
Twitch.tv/MapleStax

$QQQ $AMD $SPY $TSLA

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More from @MapleStax

MapleStax

@MapleStax

20 Nov

How to identify and trade Supply and Demand zones!

🧵 A THREAD 🧵
This will be a simple explanation of my use of Supply and Demand zones.

1. Supply and Demand is similar to resistance and support, but S/D allow you to recognize where buyers and sellers are present. This gives me confidence when placing my orders.

2.If you understand support and resistance, then you are halfway to understanding S/D! Know that you should not have blind orders in potential zones, always gauge price action and how quickly it is approaching your zone.

Read 10 tweets

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6 Nov

Trading plan for newer traders!
Account builder.
🧵(A THREAD) 🧵
Here is a simple trading strategy for traders who currently lack a plan. This strategy provides a proper thesis on how to make base hits and build your account!

1. Scale into a position 1/4 at a time near a support level with a clear level to base risk off of. This will provide patience in planning and prevent trades taken with haste. Putting the ball in your court gives you the advantage in the trade, you control what you lose.

2. Identify a support level to base risk off. Do this by looking at time frames larger than the 1 min and placing horizontal trend line. I don’t stop out right on support, I have a SL in a small range below support. Never on the half and whole dollar psychs.

Read 13 tweets

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30 Oct

Biggest trading mistakes to avoid!
(A Thread)
We all know 90% of traders fail their first year, accepting and working on your faults is the first step to be apart of the 10% who succeed.

1. Oversizing- The yearning for profit should never overtake your defined risk parameters. You have to EARN the right to size up. Trade good setups with minimal risk and the money will follow. Greed will kill you.

2. Bagholding- This detrimentally affects your emotions/decisions. Cut the bag and move on. Your opportunity cost is burning away each day. Give yourself and your account a chance, own up to the bad trade you committed and move one.

Read 10 tweets

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17 Oct

How to understand and learn from your emotions experienced through a losing trade!
(A Thread)
Learn all the Technical Analysis you want, but it is all futile if you cannot maintain emotional composure.

1. How many times have you taken a trade a trade with planned thesis only for you to get stopped out, then the trade rip to the upside right after? Always ask questions to get to the root of the problem:

2. Why did I stop out? Did I have too tight of a stop? Was my trade thesis correct, but I had poor execution/entries? What was I feeling during the trade? Anxiety, pride, fear, uncertainty or lack of confidence, anger, despair?

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9 Oct

How to become profitable and grow your account!
(A thread)
When I was struggling through my breakeven phase, I found these key tips helpful to push myself to become a profitable trader.

1. One of the most common reasons a trader is not profitable is due to poor risk management. You must have a max loss per trade, align this max loss with a TA supported risk level. Prevent unnecessary losses.

2. Plan your exits. Scale out along the way, I prefer to scale out 1/4 of my position at a time. This will offload your risk and lock in profit. Base hits->consistency->profitable.

Read 12 tweets

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@MapleStax

3 Oct

How I became profitable by focusing on the 3 E’s. Entries, exits, and emotions.
(A Thread)
I was consistently losing on a day to day basis with dwindling hope. After reviewing thousands of charts, I realized I needed to review myself.

1. ENTRIES- A very difficult concept to stand behind as it deals with TA and supporting your analysis with confidence. How many times have you charted out a play and not executed and it went as planned? Missed opportunities.

2. I was frustrated with my lack of confidence in my own plays, so I began taking entries on my best setups with rather small size. Each time I was right I gained a small boost of confidence. I saw a positive change in my consistency.

Read 12 tweets

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