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MapleStax

27 Nov, 13 tweets, 4 min read

How to trade weekly 0DTE options!

🧵 A THREAD 🧵

This is my approach on trading very volatile and profitable options contracts with 0 days to expire.

1. 0DTE contracts are risky, but with increased risk comes greater reward. The truth of the matter is that you do not need to risk a large % of portfolio to make insane gains. Always watching first 3 OTM contracts closest to being ITM.

2. Each morning I analyze $QQQ (or whatever ticker you want to trade) and find the channel that price is consolidation in. I look for highs/lows prior to close or the highs/lows of ext. hours.

3. I gauge the strength of price action as it approaches the channel support and resistance levels. I take Calls if we bounce off support and Puts if we reject resistance. I only take breakout entries on a pullback or retest.

4. Note: This does not confirm the trend for the day, this is why I watch VWAP, 9/20/200 EMA on 5min to understand if the strength of the trend. Basic explanation: over VWAP 🐂 under VWAP 🧸. 9for strength, 20 for stops/entries, 200 is crucial level of resistance/support.

5. You must always ask if you are trading with the trend. Fighting the trend is futile and the main reason I ever take a loss. Once I have my entry, I like for them to do as much work for me as possible.

6. Meaning I will hold on and ride the trend as long as I can, reading and understanding market sentiment to the best of my ability so I know when to scale out. Average hold time: 30min-1hr+

7. You should be scaling out along the way, as cliché as it sounds. Sell a portion on rallies/strength to lock in high delta premium. This also prevents chasing unrealized gains you should have had the integrity to lock in to begin with.

8. Reality: Losses on 0DTE are increased as theta is not in your favor. It is not the same 10% max loss in small caps, but we are not risking the same position size. I use about 1/2 normal size and make 2-4x more. If I’m wrong, I cut quickly based on TA levels and flip sentiment.

9. When trading LC options, we should always be aware of ours indexes. SPY, NQ, VIX, UVXY, and any news that may affect the market in either direction. Follow the larger participants in the market and grab the meat of the move if you can. Aim for consistency, not the anomaly.

10. Overall, you will be rewarded much more in regards to % capital you use, your time trading, and for proper TA application. I hope this helps someone out there, I’d love to hear your results at the end of this week! Results from some members in #HouseOfStax

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$QQQ $SPY $NQ $VIX #ChartHashira

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More from @MapleStax

MapleStax

@MapleStax

28 Nov

How I review charts to improve my trading! The key to my success.

🧵 A THREAD 🧵

I will simply explain my process when reviewing my trades/charts each day. This is how you will acclimate yourself for quick analyzation and execution during your trading session.
#ChartHashira

1. I review each of my trades each night to identify what I executed incorrectly and what I traded well that day. This has been my biggest influence in trading that led me to the consistency and success I have today. Screen time is green time. Study yourself.

2. I start off by looking at the chart from a top down approach by timeframes. I look at the Daily, Hourly, 10m, and 5m. I draw the trends and formations I see on the chart to show the bigger picture trend I may have missed during market hours. S/r, S/D, pivots, flags, etc.

Read 13 tweets

MapleStax

@MapleStax

21 Nov

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.

Read 15 tweets

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

MapleStax

@MapleStax

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

MapleStax

@MapleStax

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

MapleStax

@MapleStax

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?

Read 13 tweets

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