Submitted by gtrades31 t3_zxq4ns in wallstreetbets
Zeen454545 t1_j22apmt wrote
Reply to comment by Schlower288 in SPY 4h. Structural failure.. by gtrades31
Secret to what
Schlower288 t1_j22b4gt wrote
I use technical analysis for a basic framework to trade within but have long since fallen out with it as being reliable at face value. Wondering what works for you.
Zeen454545 t1_j22c60i wrote
When it comes to trading i have given up, no way retail can get an edge and there are a few proper trading systems like the one tastytrade recomend that might return a few percent above a market index. I now just buy and hold spy. As of this year i am down like most people, but thats all right,
There are certain temporary edges you can exploit like trading an inverted vix futures curve, during a crash, there is no way near term futures can remain higher than back month futures forever, so you sell near month and hedge buy buying back month, expecting mean reversion aka the market to calm down after a crash, which it does, this is volatility trading, whej vol is high sell, when low buy. You can also trade option IV, by comparing it to historical vol to get an edge. Mind you these stategues are leveraged and the wall st degen puts everything in one trade instead of using the small margin requirments to diversify.
The problem is when you diversify a trade that earns like 100% on margin, only accounts for like a 1 percent gain in your account but if you bet your whole account you can double it or risk losing it completley. One of the reasons we chase high returns is becausd we are not instutions gifted with billions that can afford like 7% a year, we gotta hit 7000% to see decent money, an instituion can pay the salaries of thousands by earning a few percent. Good luck the odds are against you, consider this a hobby at best.
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