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awesomedan24 OP t1_iy8altz wrote

Positions: Mainly quick scalps and swings of leveraged inverse (short) QQQ and VIX etfs (I think the tickers are not allowed here)

I've always struggled with risk management. I was up around 70% ytd in June then wiped it all out by holding onto my short positions into the summer rally.

Trying to be a bit better at managing risk this time with stop losses and taking profits quickly.

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rvm-2110 t1_iy8cj4r wrote

This works wonders. I trade options in India and covered my losses using 2 min trades. Set a target of 1% of all the cash I have. 2-3% on good days, -2% on bad days.

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NotDonaldTrumppp t1_iy8c6q6 wrote

For how long do u keep on holding them?

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awesomedan24 OP t1_iy8cmbd wrote

A few days at a time at maxiumum. Too easy to get killed otherwise. These are not designed to be held long term.

The drop you see in my account in June from the 145K high is when I held a leveraged VIX etf for several months, between the drop in volatility and the inherent decay of the leveraged etf, it decimated my account

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NotDonaldTrumppp t1_iy8frpy wrote

Oh trust me. I am aware about the decay. My account blew up before because i was too stubborn to sell.

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rOnce_Gaming t1_iy9mtvu wrote

I learned after losing money for good one year when I first started that for options if u see red - 10% just fold.

I just sell even if i think it will go back up or down once it's minus 10%. For green I just hold till I see a change. Has been working for me for few months now just that it's a slow upside now but at least no crazy loses. It's like 5 percent gains a month now when it used to be 300 gains then 350 lose the next month lol.

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awesomedan24 OP t1_iy9ow0i wrote

Good strategy. Paul Tudor Jones said in his Market Wizards interview that he will stop trading for the month if he ever reaches -10% across his account.

5% per month is amazing if you can sustain it. In just a few years youd be making more than most people make in many more years of sitting in SPY

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heklakatla t1_iya67p6 wrote

If /u/rOnce_Gaming could get 5% a month we'd all be funding them. That's nearly 80% a year... Hell, 2.5% a month nets you almost 35% after only 12-months. If you figure that out let us know!

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rOnce_Gaming t1_iyawbci wrote

I have made it for 5 months straight now. But it's a bear market and spy was really easy to read. I actually went way more than 5% because last month was 30% increase because of a lucky 0dte spy call I did.

Remember my username I'll post a year gain post next year July. I'm thinking bear market till next March then back to normal hopefully

But who knows I'll come back with a lost porn. But I doubt it with how much I play like a scared cat. I even play scared for gains as well hence the 5 percent. Most of my plays I could have made doubled if I held for like 3 more hrs but once I see at least 20% gain I just sell because I get sick inside thinking it might dip hard suddenly

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heklakatla t1_iyb6akr wrote

Good luck with it and when you post the big gain next year let us know your methodology!

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GhostNFog t1_iy9qgg7 wrote

Chart looks a lot someone who went from buying options to selling options.

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