Hello there,
I have been learning to trade for a year now, but I am still disappointed with my results. I have tried learning various strategies like Price Action, Supply and Demand, etc., but nothing seems to work without incorporating fundamentals (news), volume, correlation, higher time frame bias, and technicals.
Even after all that, I still can't find trades every day. I need at least 2-3 trades per day, or it just doesn’t feel good enough. Swing trading works but doesn’t seem to work for me.
Isn’t there a simple strategy that can help me gain a 30% profit by risking 23% of my capital? I really want to complete the 20 to 50K challenge with something simple. I don't mind if you have any other strategies with a higher win rate lower Gain rate would also help.
Ideally, I’m looking for:
A minimum of 1 trade per day (2-3 trades or more would be even better).
A good win rate of 65-70%.
Something simple.
I understand that just a strategy alone won’t help me. Money management, psychology, discipline, and experience are all important. But since my base (strategy) isn't strong enough, I will always struggle to trust my system.
Thank you.
Posted by No-Drag-13
4 Comments
You want to profit 30% of your capital from risking 23% of it? You want to profit more than you risk? You want to profit more than 100% of what you’re risking? Sounds like you want to gamble.
Also, it sounds like you have an itch that needs to be scratched.. (to want to or need to do 1-3 trades a day). Some days it’s better just to sit back and drink coffee, tea, water, pick your poison.
That being said, buying options has higher risk, and with uncapped rewards, whereas selling options has lower risk and correspondingly lower rewards. Those who go big or go home typically go home with little to show for it. Those who take a more conservative and disciplined approach tend to fare better long term. Now, if it’s your first time gambling, go big, because the laws that be state you’ll win on your first try and that’s how the hook gets set. If you’re past that, then it’s all a matter of your risk tolerance. Personally, I’m still learning and playing with money that I’m willing to lose, and I only sell options, CSP and CC with stocks I’m willing to own. To each their own.
There are absolutely trades out there where you can make 30% by risking 23% of your capital. However, the probability of them actually working out is incredibly low. And if there were any system that actually worked then nobody would share it.
Biggest barrier to success might be your feeling that you should trade a certain number of times a day. Optimal strategies are opportunistic. If you go into trades trying to force them several times a day, you’re trading dopamine hits in exchange for lower profit. Which you can do if that’s fun for you and worth it, but the constraint of “trade x number of times every day”,” “simple,” and “make 20% returns” might each be mutually exclusive.
Systematic, mechanical execution of an idea at the right size and at the right time are the ingredients to any successful strategy. Daily selling puts can be an ok strategy (David Sun, tradebusters podcast), but it is slow and boring. Slow and boring mechanical execution of a strategy also has been pretty profitable over the past 5+ years, just not 20% per year. Slow and boring is often a better strategy than going for “quick hitting high risk” wins.
> I really want to complete the 20 to 50K challenge
Challenges with return goals in short periods of time are exercises in survivorship bias. All it demonstrates is who got lucky and who didn’t.