If it works, it works. Do you ever struggle to determine if a trade was worth taking or a mistake if you don't have a set system/approach? When I tried to trade a similar way (my early learning days) I found that I'd put too much pressure on myself to "Find a winning trade" instead of "follow my system and let things play out as they ought to".
When you try to find a trade on lets say 500 stock, you need to study the chart and then trade. I always trade one or two items. Now they ate GC and ES. Lets say GC is ay 2900. I sell 2930 call and 2870 put. These numbers are made up just to show how I trade. If GC stays between these numbers, i collect premium and do it again. If it goes below 2870, and I become long, I sell call for 2870 and another call for 2900. I hope ypu get how I trade now.
Yeah I'm with you. That makes sense If in the given scenario price goes below 2870, you sell some calls at 2870 & 2900 to collect more premiums. If it goes down further do you sell more calls or at some point do you close the position? I started to dip my toes into the options markets (only a demo account) to see how things worked in reality vs theory. Once I realized how out of my depth I was, I decided to bring my focus back to trading price action using CFDs (the only area I've managed to find occasional success) until I was competent here and then I will hopefully move over to options.
I never close positions with loss. I just wait and become patient. It might take 4 months. I just collect option premiums and wait. I might lose but never accecpt the defeat. I know that is not a good thing.
Wednesday - XAUUSD Daily 4hr 30min What I'm waiting for: Break out of the range with follow through on 4hr and above Once price is out of this range (2880-2930) I will reassess
Wednesday - XAUAUD Daily 4hr What I'm looking for: 1. Retest and reversal pattern around 4565 - 4575 2. After a retest, I want a show of strength on a LTF and will then look to enter long
You must have nerves of steel!! That sounds terrifying to me. This might be a dumb question but do you ever have to worry about a margin call if the position moves too far against you or do you have a decent account that can handle being underwater for a while? I only ask because I thought of using a similar strategy when I looked at options but quickly realized if a single trade went a long way against me, I likely wouldn't have enough margin to keep trading around it and would probably be forced out by blowing my account.
You just need to bite double size of your mouth not 10 fold . I remember some of my trading days were like that I have moved a mountain and I was super exhausted. I believe real traders die soon I am serious. Yes sometimes I get margin call and I get liquidated by IB. Sometimes when I am long and I get margin call, I buy way out of the money protective put to solve margin issue and if I am short, I sell out of the money puts. If I tell you that I am always win, I am lying but my YTD gain this year is 53%. By the end of Jan it was 71%. So I have lost in the last 50 days but still up 53%
Thursday XAUUSD Daily 4hr 30min What I'm looking for: Another retest and reversal between 2925-2930 I'll get long after a sign of strength on a LTF What I'm mindful of: Price made an approx. $10 break out the bottom of the range before turning around and going $10 over the previous range highs. To me this indicates there is still a chance the mkt is in a range and making an expanding triangle on a HTF