Read on Twitter
(1/6)
Early this year I tweeted how I started a dust account with $500 to show how you can start small and still grow an account.
Current balance is now ~$22k
Rules:
-Option trades only
-Risk 3% per trade
Year to date return: ~43x ROI
A thread on tips that helped me:
Early this year I tweeted how I started a dust account with $500 to show how you can start small and still grow an account.
Current balance is now ~$22k
Rules:
-Option trades only
-Risk 3% per trade
Year to date return: ~43x ROI
A thread on tips that helped me:
(2/6)
Tip 1: Find your edge
Document and categorize your trades in 4 types:
Long scalp
Short scalp
Long swing
Short swing
Compare your strike rate and profitability for each.
Use that info to guide your trading strategy. Cut out the poor performers.
Tip 1: Find your edge
Document and categorize your trades in 4 types:
Long scalp
Short scalp
Long swing
Short swing
Compare your strike rate and profitability for each.
Use that info to guide your trading strategy. Cut out the poor performers.
(3/6)
Tip 2: Swim with whales.
I only took trades that had bullish option order flow.
If the flow was bearish, I wouldn't trade it.
Big players have access to more info than us; don't bet against them.
This is the only tool I use for order flow:
http://www.cheddarflow.com?afmc=3ycheddarflow.com/?afmc=3y
Tip 2: Swim with whales.
I only took trades that had bullish option order flow.
If the flow was bearish, I wouldn't trade it.
Big players have access to more info than us; don't bet against them.
This is the only tool I use for order flow:
http://www.cheddarflow.com?afmc=3ycheddarflow.com/?afmc=3y
(4/6)
Tip 3: Let your trades play out.
Have a thesis, and don't cut the trade until that thesis is invalidated. People often do this because they are over-risking.
Opportunity cost also isn't an argument if you're risking 3-5% per trade.
Tip 3: Let your trades play out.
Have a thesis, and don't cut the trade until that thesis is invalidated. People often do this because they are over-risking.
Opportunity cost also isn't an argument if you're risking 3-5% per trade.
(5/6)
Tip 4: Let your winners run
I don't cut trades based on the ROI they are up.
Some of my biggest wins have come from vertical price action, which can be hard to manage.
I look for signs like a VWAT flip, a blow off top, or a high time frame swing failure before exiting
Tip 4: Let your winners run
I don't cut trades based on the ROI they are up.
Some of my biggest wins have come from vertical price action, which can be hard to manage.
I look for signs like a VWAT flip, a blow off top, or a high time frame swing failure before exiting
(6/6)
This challenge taught me patience
I'm used to larger positions, so hitting winners on this account gave little enjoyment. I was often tempted to up risk.
Hopefully this debunks the idea that you can only grow a small account by degen'ing.
$100k is the next goal
This challenge taught me patience
I'm used to larger positions, so hitting winners on this account gave little enjoyment. I was often tempted to up risk.
Hopefully this debunks the idea that you can only grow a small account by degen'ing.
$100k is the next goal
