1/3
Trading is hard work. Trying to guess which way a market will go tomorrow or next week won't get you very far.
So let's start with goal setting. How much would you have to make each day to take home $100,000? Math below.
It's about $500/day - booked - not paper gains.
Trading is hard work. Trying to guess which way a market will go tomorrow or next week won't get you very far.
So let's start with goal setting. How much would you have to make each day to take home $100,000? Math below.
It's about $500/day - booked - not paper gains.
2/3
Now consider capital efficiency. You won't get there buying expensive stocks/indices. So if you want to watch your $500 come in each day, you've got to work each day and book those profits. No duh.
You need a little leverage (not too much) ... a little convexity ... and
Now consider capital efficiency. You won't get there buying expensive stocks/indices. So if you want to watch your $500 come in each day, you've got to work each day and book those profits. No duh.
You need a little leverage (not too much) ... a little convexity ... and
3/3
... a little luck.
One way: repeat *one way* to do this is to trade basic options, going with the flow ... keeping position size on the low side.
I've shared this study before. Copying it will help you understand it. Dupe and change calls to puts (for bad hair days).
... a little luck.
One way: repeat *one way* to do this is to trade basic options, going with the flow ... keeping position size on the low side.
I've shared this study before. Copying it will help you understand it. Dupe and change calls to puts (for bad hair days).
30 mins after tweeting this, I'm concerned about its interpretation.
The points I wanted to make:
1) you need a goal (eg. $100k),
2) you'll have to work hard to hit that (on ave booking ~$500/day)
3) and small position sizes in basic options on $SPY is *one* way.
Still hard.
The points I wanted to make:
1) you need a goal (eg. $100k),
2) you'll have to work hard to hit that (on ave booking ~$500/day)
3) and small position sizes in basic options on $SPY is *one* way.
Still hard.
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