Bailey Nevener

@RealEstateDayTrader I use the Total Loss parameter because it is what actually what "stops you out" with the auto-stop feature. I set the Max Loss parameter about a 1/2R below my true "Max Loss". I do this because in the event that I lose 4.5R's due to commission, it would be unwise to take another 1R trade even though I haven't hit my true "Max Loss" yet. So it makes it where I have certain days that I basically hit max loss, but it is just underneath my actual Max Loss. Due to the slight delay in the auto-stop feature (using only the Total Loss) and slippage, sometimes my "Max Loss days" would be a full 1R beyond my true Max Loss. Generally that would occur when I took a final trade that was a 1/2R or less away from my Max Loss. Also Max Loss is not supported on an individual ticker basis, it is based on the whole account.

Notice how GreekTrade didn't stick around, despite the "confused" reaction to my post. Hmmmm.......

Also trading long At the money Put or Call options with the nearest expiration date in a cash account allows the cash to settle overnight. Therefore you can trade everyday. Just make sure you pay attention to elevated levels of Implied Volatility if you ever Buy to Open anything out of the money. That can really cause problems for some of these stocks in play as the day drags on. Not to mention you will be fighting theta which is a real problem with the closest day expiration. It works well (in terms of controlling risk) in scalping. On top of that, make sure that the underlying stock has elevated volume because the spreads can get crazy on options. On any given day you should be able to trade a high volume tech stock or a sector ETF with no issue. If you trade a sector ETF, be extra careful, the leverage even at the money is insane. However the spread is extremely small!

Now onto my second risk bump as of April 21, after hours.

I'm having a substantially easier time working with the current margin requirements. So much so, that I actually have updated this table to reflect more accurate numbers. Year $ Gain Risk Bump +10% Intervals Risk Per Trade 0.05% Goal Amount 5R Weekly Amount Monthly Amount $ 46,328 $ 25,000 $ 25 $ 125 $ 625 $ 2,500 $ 27,500 $ 28 $ 138 $ 688 $ 2,750 $ 30,250 $ 30 $ 151 $ 756 $ 3,025 $ 33,275 $ 33 $ 166 $ 832 $ 3,328 $ 36,603 $ 37 $ 183 $ 915 $ 3,660 $ 40,263 $ 40 $ 201 $ 1,007 $ 4,026 $ 44,289 $ 44 $ 221 $ 1,107 $ 4,429 $ 48,718 $ 49 $ 244 $ 1,218 $ 4,872 $ 53,590 $ 54 $ 268 $ 1,340 $ 5,359 $ 58,949 $ 59 $ 295 $ 1,474 $ 5,895 $ 64,844 $ 65 $ 324 $ 1,621 $ 6,484 $ 71,328 $ 71 $ 357 $ 1,783 $ 7,133 $ 145,397 $ 78,461 $ 78 $ 392 $ 1,962 $ 7,846 $ 86,307 $ 86 $ 432 $ 2,158 $ 8,631 $ 94,937 $ 95 $ 475 $ 2,373 $ 9,494 $ 104,431 $ 104 $ 522 $ 2,611 $ 10,443 $ 114,874 $ 115 $ 574 $ 2,872 $ 11,487 $ 126,362 $ 126 $ 632 $ 3,159 $ 12,636 $ 138,998 $ 139 $ 695 $ 3,475 $ 13,900 $ 152,898 $ 153 $ 764 $ 3,822 $ 15,290 $ 168,187 $ 168 $ 841 $ 4,205 $ 16,819 $ 185,006 $ 185 $ 925 $ 4,625 $ 18,501 $ 203,507 $ 204 $ 1,018 $ 5,088 $ 20,351 $ 223,858 $ 224 $ 1,119 $ 5,596 $ 22,386 $ 456,318 $ 246,243 $ 246 $ 1,231 $ 6,156 $ 24,624 $ 270,868 $ 271 $ 1,354 $ 6,772 $ 27,087 $ 297,954 $ 298 $ 1,490 $ 7,449 $ 29,795 $ 327,750 $ 328 $ 1,639 $ 8,194 $ 32,775 $ 360,525 $ 361 $ 1,803 $ 9,013 $ 36,052 $ 396,577 $ 397 $ 1,983 $ 9,914 $ 39,658 $ 436,235 $ 436 $ 2,181 $ 10,906 $ 43,624 $ 479,859 $ 480 $ 2,399 $ 11,996 $ 47,986 $ 527,844 $ 528 $ 2,639 $ 13,196 $ 52,784 $ 580,629 $ 581 $ 2,903 $ 14,516 $ 58,063 $ 638,692 $ 639 $ 3,193 $ 15,967 $ 63,869 $ 702,561 $ 703 $ 3,513 $ 17,564 $ 70,256 $ 1,432,120 $ 772,817 $ 773 $ 3,864 $ 19,320 $ 77,282 $ 850,099 $ 850 $ 4,250 $ 21,252 $ 85,010 $ 935,109 $ 935 $ 4,676 $ 23,378 $ 93,511 $ 1,028,619 $ 1,029 $ 5,143 $ 25,715 $ 102,862 $ 1,131,481 $ 1,131 $ 5,657 $ 28,287 $ 113,148 $ 1,244,630 $ 1,245 $ 6,223 $ 31,116 $ 124,463 $ 1,369,092 $ 1,369 $ 6,845 $ 34,227 $ 136,909 $ 1,506,002 $ 1,506 $ 7,530 $ 37,650 $ 150,600 $ 1,656,602 $ 1,657 $ 8,283 $ 41,415 $ 165,660 $ 1,822,262 $ 1,822 $ 9,111 $ 45,557 $ 182,226 $ 2,004,488 $ 2,004 $ 10,022 $ 50,112 $ 200,449 $ 2,204,937 $ 2,205 $ 11,025 $ 55,123 $ 220,494 $ 4,494,606 $ 2,425,431 $ 2,425 $ 12,127 $ 60,636 $ 242,543 $ 2,667,974 $ 2,668 $ 13,340 $ 66,699 $ 266,797 $ 2,934,771 $ 2,935 $ 14,674 $ 73,369 $ 293,477 $ 3,228,248 $ 3,228 $ 16,141 $ 80,706 $ 322,825 $ 3,551,073 $ 3,551 $ 17,755 $ 88,777 $ 355,107 $ 3,906,181 $ 3,906 $ 19,531 $ 97,655 $ 390,618 $ 4,296,799 $ 4,297 $ 21,484 $ 107,420 $ 429,680 $ 4,726,479 $ 4,726 $ 23,632 $ 118,162 $ 472,648 $ 5,199,126 $ 5,199 $ 25,996 $ 129,978 $ 519,913 $ 5,719,039 $ 5,719 $ 28,595 $ 142,976 $ 571,904 $ 6,290,943 $ 6,291 $ 31,455 $ 157,274 $ 629,094 $ 6,920,037 $ 6,920 $ 34,600 $ 173,001 $ 692,004

Implemented my first risk bump on Thursday the 14th, after hours.

Anytime I am shorting options, I am doing an OTM credit spread about 45 days out behind a support or resistance on the daily. This maximizes the theta decay from one day to the next increasing your rate of receiving max profit. You should cut it around 21 days if you are close to max profit or roll it forward to keep the decay rate high if it is still a good trade. Since this is so many days out, I would only do daily chart entries or higher. The profit from these takes a little time, but that is a huge edge from the theta decay. Enter for mid-term trade ideas. Was there an earnings overreaction? If the price drops into a support level, initiate a spread with the strikes well below the bottom of that support, and as the Implied Volatility dries up you will immediately be in the money.

I made tons of more trades with options prior to this post, and they all totaled well over $15k, but my investment position in Dutch Bros ended up taking all of those profits, literally to where the account was breakeven on the year. Ouch. Big position size. Didn't sell though lol. I'm FINALLY in a new house of my own, fully moved in. I had a dispute with Robinhood where they locked my account from opening any new positions or withdrawals for over a month! Essentially they thought I was impersonating myself. Lol. Fortunately I was in a high probability put credit spread on BROS the whole time, so I actually made max profit while I waited. This trading view chart basically shows the trade. It was a 35/30 put credit spread 80 days out from expiration. I was able to get out for $12,000 of the $12,600 max profit after about 50 days. That's because when I shorted the contracts initially it was while the stock was dropping quickly, elevating the Implied Volatility / Premium. It immediately rebounded, and fortunately did not drop past my initial entry for the entirety that I was blocked from opening positions. I had to file a complaint with FINRA and the SEC, and they FINALLY lifted the restriction. This was all while I was moving 800 miles from CA to TX. (Property taxes are waived for qualifying veterans.) Their system was very buggy when I was trying to initiate a withdrawal, so I had to do an ACATS instead into TD Ameritrade temporarily. Then I created an S-Corp for trading, and I applied for a new business account with IBKR under that entity formed in Texas. So as of 03/23/2022, I once and for all, have a $26,000 account with IBKR solely dedicated to trading. FINALLY. That took so long. Anyway, new income that isn't so stressful!

It is possible for certain, but if that is your mindset rather than “How can I become a good trader?” you probably won’t last. Smart people that are dedicated make a living from this. If you are asking a forum on whether or not you can do it, you probably aren’t either. You can always change that though.

Yes. By putting your money into an S-Corp and paying yourself as an employee and cashing out only what you need to live. Also if you can successfully have Trader Tax Status you can count your losses as regular losses rather than being capped at 3,000 that rolls over every year. I’m sure there’s more, but I’m not sure of what else off of the top of my head.

@GreekTrade If the chat room isn’t mainly a distraction, you probably don’t have a strategy, or can’t follow it.

One screen for DAS, and maybe one screen for screeners and the chat room. However, info overload definitely will kill progress and create horrible habits. I think you might find, like many others, even having the chat room up is too much. Especially at first.

I made about $3,000 on a 24 hour trade the other day using my excess buying power on long call options. That makes my total gain from using call options about $5,000. In other words, my swing trades. Still would prefer for BROS to break up, but it is cool to make some big bucks. I can't really use it though until BROS is way over $50.

If I had to guess they are manually adding them premarket.