March 29 Summary:
- Day Trade vs. My Options Trades vs. Etc.
- 1% per day vs. $1 per trade
- My goal is profitable trading months
- Week #13 / March 29 Options Trades
Day Trade vs. My Options Trades vs. Etc.
Yesterday during Iurio's stream, we discussed day trading and how he used it. One of the things he mentioned was that he aimed for 2% or 3% per DAY. He was going into a trade looking for a quick profit, and then you get OUT.
As an options trader, there are hundreds of ways to trade. It is not one way is right or wrong, but depending on what you are trying to do with the trades.
- You can make 0 DTE trades (like a Day Trader).
- You can look for big gains (50%, 100%, 200%, etc.).
- You can sell options and play the Theta Decay game.
- You can use covered calls for income or "dividend" boost.
What do I do?
I use a combination of different methods. I do covered calls on my dividend stocks. I sometimes play both sides like a straddle. I use credit spreads and iron condor. One thing I don't do is chase HIGH RETURNS. I'm not looking for 1% or 2% return PER day. I do the opposite of most people. I aim to make a profit on each of my trades, even if it is only ONE DOLLAR. It becomes a volume game if I can have 100 profitable trades. Then I can move up to 1000 profitable trades per year.
Once I get a system that works for making profits, the next step is to increase the size of the position. This, however, is a tricky balance between Risk and Reward. You don't want to risk $10K to make $2 dollars. That is a very capital-intensive trade. There is a balance to ensure that it will be worth the risk to make that reward. I don't have any rules of thumb here. This is up to the individual trader to decide.
My goal is Consistent $$$ AKA profitable trading months
I set my goal of having a profitable trading week. That will turn into profitable months and quarters. For me, consistency is the key. If I can repeat the same pattern over several years, then I know it was not RANDOM luck but rather skill. It is a process of doing what works over and over again.
I do track all my data on an Excel Pivot Table.
Here you can see I track multi-years of options/dividend data. The last time I had a LOSING month was August 2022. Don't forget that last year was a down year for the market (-20%).
The last time I had a losing quarter was back in Quarter 4 of 2021. I remember losing on 3 or 4 trades and wiping out all the profits for several months.
Week 13 / March 29 Options Trades (Today)
I have been posting my trades on social media for several years now. I use Twitter, Facebook Group (Level102 and Options Trading 101), and YouTube videos. However, I recently moved my blog/posting to Hive BLockchain using PeakD/LeoFinance.
Here are my trades for today.
- Rolling Covered calls for premium.
- March 31 adjustment of Strike Price is to make an extra $1, $2, $3 dollars.
- No adjustment to any Iron Condors today.
Week #13 is on track to be another profitable week, and Q1 of 2023 will be a profitable quarter. There is some risk in the markets with BANK failures, a recession that is not called a recession, COVID risk, Geo-Political Tension in Russia and the South China Sea, etc.
Solving-Chaos