EliteOptionsTrader Profile picture
Nov 24, 2021 11 tweets 2 min read Read on X
Trading rules are vital to ensuring a trader stays on the right path toward success.

Here’s everything you need to know to become a consistent trader.
1) Treat trading like a business

- Set realistic goals & expectations
- Respect your cash and account size
- Pay yourself at the end of each week
- The more time you invest in understanding yourself and the market, the higher chance of achieving consistency in trading
2) Never average down on a losing position

- If a trade is going to work, there’s no need to buy more
- Averaging down may work 50% of the time, but one day you may avg down too much and blow your account
- Focus on high-quality trades and following your rules
3) Never have a bias

- Having a bias will hinder your ability to see trades objectively
- Follow price action & never trade counter-trend
- Don’t try to be “right” all the time
- I’d rather be wrong and make 100k by following price action than try to be right and miss a trade
4) Always take profit on the way up

- You don’t need to hit home runs/grand slams to grow your account
- Systematically take profits (30, 50, 75, 100%+) on the way up
- Each partial sell can help remove emotion while reducing risk, which can help you trade objectively
5) Protect your capital/manage risk

- One, two, or three trades should never have the ability to wipe out your account
- Never risk more than 20% of capital in weekly options
- Learn to trade smaller size and you will see how much easier it will be to manage your positions
6) Always stay grounded

- It doesn’t matter if you make $100 or $100,000 in a day, you need to learn how to appreciate your profits regardless of the amount
- Never compare yourself to other traders, you don’t know what they’ve gone through to get to the level they’re at
7) Cash is a position

- Mental & physical capital preservation is key to long term success and consistency
- If you do not see any trades you would take 90% of the time or feel FOMO, stay cash
- If the market is stuck in a range, it’s best to sit/observe & protect your capital
8) Follow your stop loss

- Always follow your stop loss no matter what
- If a trade doesn’t feel right, cut it
- Losses are a part of trading. It’s important to never let one loss affect your mental and capital ability to take the next trade
9) Formulate a plan and follow it

- You MUST have a plan before you enter a trade
- A plan consists of a trigger, target, and stop-loss
- Create a plan, execute your trade, secure the profit or loss, and move on
- Accept all outcomes before you enter a trade
10) Study and learn from your mistakes

- Journal & study your trades every day
- A losing trade is only a loss if you didn’t take the time to learn from it
- The road to consistency always begins with losses/mistakes so don’t be discouraged if you struggle in the beginning

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More from @EliteOptions2

Jul 3
I’m 34.

I make over $400k a month from trading options.

If you’re struggling to become profitable…

Here's the quickest way to do it (just copy me): Image
Most traders chase perfect setups.

But setups don’t matter if you don’t understand yourself.

You need to know:
- Your emotions
- Your risk tolerance
- How you react to wins/losses

Then build your system around you.
Paper trading is fine to learn mechanics.

But if you want real growth?

You need to trade with money on the line.

Feel the emotion and manage it.

That’s how you build real skill.
Read 13 tweets
Jun 30
I’ve made $10,000,000+ from trading options.

Most people have no idea how to start and scale their capital.

If I had to start all over with under $1000...

Here’s the ONLY guide I’d follow (anyone can do this): Image
1) What even is an option?

First let’s understand.

An option is just a contract that lets you bet on whether a stock will go up (call) or down (put).

You don’t own the stock, you’re renting it.

And the best part…

You can make money whether the market’s up, down, or sideways.
2) My go-to analogy

Trading options is like putting a down payment on a girl way out of your league.

If she blows up on IG, you’re in early.

If not? You walk away.

All you lost was the price of dinner.

That’s options.

Less commitment. More upside.
Read 10 tweets
Jun 7
I’ve made over $10M trading options:

It didn’t happen overnight

AND

It didn’t happen by luck

Here are 10 lessons I wish I knew before I started 🧵
1. Simple > Smart

I don’t use indicators.

I don’t need 10 confirmations.

I use:

→ levels
→ patience
→ momentum

That’s it.

Trying to be the smartest guy in the room cost me years.
2. Size like you’re wrong

Every trade I take, I assume it could go to zero:

→ no stop losses
→ no praying

Just position sizing that keeps me calm if it tanks.

Peace of mind is worth more than a big win.
Read 13 tweets
Mar 18, 2024
Here are 10 trading rules that I've been following for the past 13 years that have helped me become a consistent trader 👇🧵
1) Treat trading like a business

- Set realistic goals & expectations
- Respect your cash and account size
- Pay yourself at the end of each week
- The more time you invest in understanding yourself and the market, the higher your chance of achieving consistency in trading
2) Never average down on a losing position

- If a trade is going to work, there’s no need to buy more
- Averaging down may work 50% of the time, but one day you may avg down too much and blow your account
- Focus on high-quality trades and following your rules
Read 11 tweets
Jan 6, 2023
There's many different ways to make money trading options. I'm going to explain my journey on how I grew my account big enough to generate at least $100,000 each month 💡
When I first started trading, I had to wait weeks at a time for high probability trade setups that had the potential to move at least 5-10x. This helped grow a 4 figure account to 5 figures and eventually 6 figures within the first 2 years.
After trial and error and backtesting many different strategies I learned that less is more. There's no need for ten different indicators to see the direction of the market. In simple terms, the market moves either up, down, or sideways. It's your job to identify the trend.
Read 6 tweets
Jan 5, 2023
Thinking of quitting trading after 6 months?
 
Read this first 🧵
I’ve been in thousands of losing trades and had sleepless nights, but I never gave up.
 
Here’s what I learned to help me continue trading and become the successful trader I am today… 🧵👇
Trading is a lifelong journey. You must accept you will not get rich overnight. You have to learn to survive.
 
In order to survive, you have to be willing to learn. Learn price action, learn risk management, learn about your mindset, and most importantly learn from your mistakes
Read 8 tweets

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