Many of you questioned the wisdoms of day trading with a R:R < 1 and further questioned the validity of @volpri's methodology which is the approach used here. I like to show a short summary of live trades using his approach. Notice I did not say hie recipe but emphasized the word approach. I am not showing those days with reduced size and only showed all the results with a $50K account. I have been trading selected stocks and index using his approach starting on 11/25/2024 with a test size of 10 shares per trade and have since scaled up to the current size with a ~ $50K cash account. I decided to move some cash out of my Roth IRA into a separate Roth IRA for PDT. The limitation of IRA is no margins and no shorts, the advantage is tax free. What is remarkable is out of 53 day trades, there were only 3 losing days. However, one, on 2-7-25 was a biggie, wiped out a big chunk of cum profit to that date. I started the $50K account on 1/30/25 and here is the result: By ET standard the profits were modest but as a newbie day trader, I couldn't ask for more. I will provide an update in the future if the general outcome changes significantly otherwise this is a one and done. PS: 2-7-25, what happened with DeepSeek, no SL and shorts not allowed.
Most traders call this approach "Eat like a bird, shit like an elephant." It’s only a matter of time before you encounter an unexpected Black Swan event, and then you’ll learn the hard way.
Why I don't write naked options or day trade futures. Perhaps more appropriately, it is like writing covered calls and cash secured puts. We will see if it is the same here.
Eat lots of cheese and there will be less shit. Shit only happens of you let it.... IN MOST CASES. Reminds me of the joke: Three co-op farmers decide to enter their biggest pig in a contest at the rodeo grounds. So, to better entertain the crowd and the judges and increase their chances of winning the contest they decided to dress up a monkey in a clown suit and train him to ride the pig around and around in the rodeo doing tricks while the pig was moving. To fatten the pig up they put a big stopper in his rear end and several days before the contest they fed that pig a lot of corn and other food. So, on the day of the contest when it was their turn, they released the pig and the monkey into the rodeo. As the pig ran around the monkey was doing flips and headstands along with other tricks to the delight of the crowd and to the amusement of the judges. Everyone was thoroughly enjoying the show. Suddenly there was a huge explosion, and the three farmers blacked out from the explosion as well as some of the crowd and not a few of the judges. Six days layer the three farmers regained consciousness in the hospital room that was shared by them. One turned to the other and asked what happened? The second one said he had no recollection and didn't know what took place. The third one said he didn't remember all the details but the last thing he saw was that monkey trying to put that stopper back in the pig! Sometime in trading we gotta stop that pig back up when shit is happening.
There is another saying: "In the markets pigs get slaughtered" I, as a scalper will opt for the bird approach and grab that worm while it can be grabbed and just do it OVER AND OVER and use techniques that render a high win rate. FOT (frequency of trades)
Aloha chef, Glad to see you started this journal. What was it that caused that large loss, what did you learn from it, and how will you avoid it again? If you implemented what you learned (after the fact), what would the loss have been? Was it really too fast to avoid? Chart?
Um I best make haste and state I was NOT implying ironchef incurred the loss because he was a pig. I have no way of knowing why he had that bigger loss on 2-7-2025 other than Deep Seek and no SL as I have seen no chart showing his entry or exit (no context) nor do I know what he was thinking as he entered the trade and subsequently took that loss that he shared with us.
The video game approach to trading, only getting 'do-over' extra lives don't come as easily nor without significant trauma. May the 'odds be in your favor' while on paper they are clearly not Best of luck @ironchef
Hello ironchef, How are you doing today? I am VERY proud of you for your trading efforts. Great work. Please keep following @volpri. He knows what he is talking about. A big thank you to @volpri and @MarkBrown and @Scataphagos for helping me in my trading career. I thank all 3 of you.