Option trading guide reddit

So how do they do all this? Options are good for all sorts of things. Could you play this out for me? And honestly it was the topic I really was hoping to focus on. The agreed upon price would have to be inside the NBBO in order to trade. This means that all you need is for 2 people to agree on a price, then exchange, and then BAM! Definitely worth looking at! The seller of a call option has the obligation to SELL to the buyer of the call, if the buyer chooses to exercise the call. Which is different from calls, where the seller has the obligation to sell and the buyer has the option to buy. That contract is an actual commodity, whose value can go up and down as time goes on. And then sometimes I see some confusion when conversations are more advanced. In which case your math adds up. Which is different from calls, where the seller has the obligation to buy and the buyer has the option to sell. That is the rule.

And spread is the difference between the two. The next day the stock shot up and he chose to sell the contracts at a price of 22. However that introduces a new concept involving market conditions, regarding the number of buyers and sellers at the market. The seller of a call option has the obligation to SELL if he is assigned by the OCC. Edit: the usual tweaks when you write a big post. For example, if I tried to sell the one and only mona lisa to the world, and assuming there were many buyers who want it, I would probably get a hefty price because I will only sell it to the person who is willing to give me more money than anybody else in the world. Options are bad at this by nature mainly because investing implies long term stuff, and options all have ticking time limits. And if not what did u mean? Not really, just saying that that the options NBBO and the stock market NBBO are two completely different things that naturally are related but are independent.

You cannot trade outside the NBBO. Also feel free to correct me if botch any part of this. Honest question, because it has huge implications. Not a definition, but a word of caution. Please read this, because both above explanations above are incorrect. The seller of a put has the obligation to buy stocks where as the buyer of a put has the option to sell stocks.

And this is what it all comes down to, the holy grail of options trading. Options prices are decided similar to everything else in the world, which is the market decides. For how much would you sell it. Aka volume, aka liquidity. Where would someone looking for options 202 go? The buyer of a call has the right to exercise and buy from somebody, extremely unlikely that it would be the seller. In this example the OP purchases three call options at a price of 11. For simplicity sake lets just assume its an OTC contract between two parties. Thank you for contributing this, and I hope to see an OptionsTrading 103. Market makers within an exchange also form a spread for stock prices, in which case your observation applies to them too.

So I would rather resell the option before it expires. Secondly it should be mentioned because the assignment process is fairly random, and while you might be expected to cover before expiration, you also might not. Can you clarify something? First, you got your strike and market values mixed up. But to answer your question, this particular example has many factors and it would be an injustice to answer quickly. But say you did want to do that. First you have to change the way you think of options. Second, once adjusted to real life strike price and options price, the numbers would look much different and not as attractive. Hedging, or trying to keep a steady portfolio from crazy market swings.

So are you pointing out that options folks do this at an aggregate level when combining exchanges? AND sellers, then really strange stuff can happen because every transaction that takes place could literally be decided by who is better at haggling. But that is completely separate and independent of the option market. In theory I would want to buy a 493. OR you could sell that contract. And the NBBO would be determined by the quoting marketmakers on all the regional exchanges.

Okay maybe I get it. So, while you are agreeing on a price, you will really just be trading at the theoretical price for that contract. It took a while just to wrap my head around the very basics of the different types of options. Move on to more complex calendars and butterflies after that. But I will get there. Play the probability and odds. Then the simpler things made more sense. Then Google the terms.

Learn about options pricing and learn to calculate independently of whatever trading platform you use. Set a small goal. And I would have to Google it again, and again, and again until it became a language I understood. Instead, try lower cost ATM strangles and straddles on volatile stocks and ETFs. The guys at Dough. Rewatch them a few times. What is working today or this year, may be a sure method to get destroyed next year. On the other hand, this market may very well draw down hard before the close of the year. But the key for me was submersion in the content.

True that much per month in amazing but you will also have some losses that average it out over time. You take your profit in dollars and divide it by your maint. Tasty Trade channel has a bunch of different shows. You may be calculating your percent profit wrong. Noob questions get answered. Replying here so you receive notice: 4 months ago I was a complete noob. And of course, ask questions here when you have then. Then again, that may not happen either. Doing that sort of forced a lot of other info on me. Doing that cemented the concepts into my head.

Plus, this sub has been amazing. YouTube and find a channel that you enjoy looking at and that has a series of videos. Do t get me wrong, sometimes it was like watching a foreign movie with hard to read subtitles. Should I do it? The market will move against or stagnate and you will either sell at a loss of money or hold overnight and let theta get you. The contract is exercised after market close on this date. Is it a weekly?

Is it what everyone else on WSB is doing? Does it involve Oil? Some people have mentioned using vertical spreads. These are decent defined risk trades. MightyDerek deleted his post. Just follow this guide to maybe not completely waste your money. Are Earnings this Week?

So here is how to not blow up your account. Ok so a quick options guide, because since that high school kid had his run the level of options retardism has gone through the roof remained unchanged. Paper trade options there. Yeah you guys are probably going to laugh at this. Just defies all logic! UVXY as an investment. Bollinger bands can help to with locating direction changes and when to enter. You learn by doing. There is literally nothing to buy right now.

Could someone please take me under their wing and mentor me through a trade or two on SPX or something like that? Buy high sell low. Leverage and theta burn will wreck you even if that other person makes money. Patience is a virtue. For basics, watch price and volume. Average share price was at 11. Buy them ITM and month or two out. But yeah I deff fucked up and waiting either to take my losses, or wait untill friday and hopefully there would be a spike. Read up on options trading in general.

Why would you buy UVXY on a spike? Do some trades with play money. Generally volume dies off around lunch and SPY usually trades sideways there and eats into the premium. Also the people over at TastyWorks make decent videos on the topic. The know nothing investor will make nothing. PDF on here a few days ago with some good material. Then go learn about options.

VIX is hardly ever bellow 10 though. If not go to tradingview. You use it as a hedge. SPX just buy it outright for now. Wait for a spike in volatility and sell for profit. If you want something quick, investopedia is an amazing resource. The first 30 minutes after open are very volatile from my experience. Still profitable between selling covered calls and verticals.

PhDs in math and very complicated computers. On top of that I would be glued on my ToS screen leading to no actual work being done for which I am paid for. TLDR: Youre going to lose money. Maybe someone who does it successfully can present there method. Show me one study, with actual stasticsl rigor, that shows ta improves performance. There are thousands of articles on TA. Dont sell options or youll lose a lot of money. Total noob to options. Have you heard about IV percentile or rank?

Do you think that algos and PhD fund managers move billions of shares per day on fundamentals and news wires? TA and you never mentioned a thing. Please contact the moderators of this subreddit if you have any questions or concerns. YOLO it all into a speculative play and lose it all. And you stand to lose the whole amount if you picked the direction wrong. Nor to replace your lack of experience in the realm of trading.

My mistake re: IV rank, I thought you were just talking about plain IV, not relative IV. High priced stock was just an example. You would have to look at each stocks options chain to figure out liquidity. Your money would be better used in a new position. What disconcerted you about running parallel to the algorithms? Or is it that you are literally short selling an option, and because they are leveraged it can drop very fast? You are correct but that is a lot to lose if you are talking about high priced stocks like amzn or indexes like spy. Look up confirmation bias. Rolling a spread could mean a lot of things but simply it means closing the existing position and opening a similar one for next expiration. If you have some real evidence for TA, I would genuinely love to read it. What are you basing this on? Then realized I was always losing money.

Doing more learning before I do anything. The best thing to do is immerse yourself in what you are trying to do and make up your own mind. TA was, I asked for evidence that it actually was valid. If you fuck up you just let the options expire. Isnt the risk always established up front as the premium? Recommend working on risk management as well.

There are thousands of articles on palm reading too. But ordering near the bid helps reduce the risk of the spread. The problem is that I cant find a single one that actually uses any sort of mathematical rigor. Otherwise you are going to be following the advise of strangers who dont know what they are talking about. My red days were earnings plays based off of fundamentals. You see what you want to see. With spreads you are basically reducing the risk by selling an option against buying a cheaper one.

Tape went up from there on a dead cat bounce, then came back down. Thats all I want. And instead of reading all my past posts like a fucking wierdo, why dont you just post some evidence for TA. The only thing that consistently predicts short term trends are technical data points. This TA was seen by pro traders; shorts were closed, longs were opened and in a matter of only days, SPX rallied over 110 points. Sorry, after seeing you rant cluelessly about TA on here for the 2nd time in one day, I got curious what kind of dense motherfucker about your credentials. Even if I was asking what it was yesterday, you still havent provided anything to prove yourself right.

For myself, Double and Triple tops and bottoms, Fib Retracements, or simply noting key pivot points on stocks I follow daily and realizing patterns repeat. You have to ask yourself whether you still believe in the position or not. The way to figure out 1sd strike is to add the ATM put and call price. Which maturities do you favor? Just going off of news or what? Dont get into it. TSLA when I started and knew very little but it worked out. You went through my post history?

TA you think is bullshit. With that said, TA can mean 1001 different things. But my delights are very close to being in the money. Technical analysis is total bullshit and anyone who tells you differently is an idiot. So you are reducing the money you pay, reduce the risk but reduce the reward at the same time. And your reading comprehension sucks dick.

Volatility will help you decide method. The different strategies people use are meant to increase their chances of coming out ahead. If you do then you roll the spread out. Done every position in here. First of all, thank you for the info. It is expected that those long options will expire worthless. It seems like you play a lot of shorter strategies. IV for whatever reason.

Do you guys play earnings months out, do you do DD and place short term bets? If you are selling options, it is a pretty common method to spread your position to reduce risk or buying power. ETFs with good liquidity, tight options markets, high IV, IVr, and IVp. Assuming you can stop losing so badly on equities, do your options gains represent enough money to materially supplement your income? Many traders in the options game make their living selling the lotto tickets. Thanks relaxnewb, good luck trading. By selling options you can make consistent income if you are mechanical and patient. When I started trading options I was buying a month or so out and cashing in after 5 or so days. Things like naked calls several months out are fair game I believe, even though those are pretty speculative, not the ideal situation.

ETFs instead as a safer harbor. Just lots of watching, throw some bids out there and see what happens, is what it boils down to. Carry balance of negative deltas to protect against volatility expansion which happens to the downside in equities. No speculation or day trading. Thanks again, the insight is much appreciated. Beta weight to SPY to give me a neutralized delta target. HRTX with a buy in around 17. On a flat day what happens to option prices at 930 vs 1030 vs noon, vs 230. You can make the case that both are equally viable. Watch the lunchtime effect.

As far as being a net buyer or seller of options, that is wholly dependent on your method and goals. Is there a good site to practice options trading calls and puts? So I wish you good luck! These are the droids you are looking for. Ive never wanted to get into them because I dont know tax. Here you can find something important and get some ideas. The first link is education, the second offers virtual trading.

Also is there a site or guide explaining them and how they work? Yeah bro I got full options approval on my Roth. How do I get approved? Yeah in my Roth IRA I can do covered calls and I can buy regular calls and puts. Did you say you have super good knowledge of it? They called me asking what types of strategies I use and I said verticals and they approved it like instantly. Roth IRA and I was just denied for option trading. That got me forex approval, options lvl 3 and margin for tda.

Why the hell does everyone have to lie to get approved for options, on TD I just had my profile to speculative and took a relatively not difficult test. What began as an experiment from a mysterious internet persona has become a force to be reckoned with, prompting banks to adapt. Chase Pay, JP Morgan is struggling to compete against other banks and tech companies who offer similar mobile payment programs. Emily Glazer explains why JP Morgan is having so much trouble. But how does cryptocurrency work? New HQ: Where Could it Be? And where is it headed? In Bitcoin We Trust? Laura Stevens breaks it down. Edition for November 15th: Richard Cordray will soon resign as head of an agency created after the financial crisis.

Digital, decentralized money is quickly coming of age. Posts like this help me bridge the gap between the theory I learn from books and the practical knowledge you get from being part of the community or actually trading for months. Jdst with a different price tag. GSCI Natural Gas Index ER. Feel free to day trade and blow up your account as often as you want! Highly volatile stocks are ones with extreme daily up and down movements and wide intraday trading ranges. Some people choose to leverage their stock portfolio and you can get the exact leverage ratio of liquid investments to future ratios. Shkreli pump and dump?

Gives me good chuckles when work is slow. Elon Musk, and ridiculously expensive options. Because I am what I am. Already up on that and might close it out. Someone attempts to show how selling covered calls is idiot proof, but gets lazy, bets all six figures on Apple, and suffers significant losses. Mnunchin, Trump, Big fat fannies. That and my father is a retired San Fran stock broker who lives off of trading.

You can walk into a pharmacy and just buy it. It should be noted that LABU has doubled since just before the election of Donald Trump. This is something that is, and should be realized as undeniably true. In an options pricing, you see IV. Your father will never understand your spectrum of autism, but we will always love you. NVDA has been a sexy semiconductor leader. Would you add brokerage recommendations to the guide? FS claims a supernatural clairvoyance of AAPL. You buy a call expecting WSB to take you to the moon and beyond.

WSB is officially born. It is a uniquely beautiful community focused on praising its biggest losers as much as its biggest winners. Welcome to the world of investing made not difficult. Delight or the gambling on all these 3x ETFs. FSC is featured on several market related articles and newspapers, showing up on yahoo, etc. Where a bunch of dudes hang out on the romantic beaches of Guerrero Mexico. You guys are all faggots, upvote this so we can get the noobs to stop trying to bite on our cocks.

Now that we will be on the popular section of reddit, this has become pertinent. An expiration date in derivatives is the last day that an options contract is valid. Also a good read is the beginners guide to FNMA. Later we find proof during his livestream of AAPL earnings that he was paper trading. SPAN margin, which is like portfolio margin on steroids. Bull markets in general tend to increase the price of the near month faster than the far month. Unbelievable night of election. Unlike options, futures is a contract where both the buyer and seller is obligated to perform the transaction by the expiration. In a completely unrelated event, the wsb banner is changed to thousands of ejaculating dicks.

However, it is clearer that it may not have a leg to stand on. An idol to many WSBers, Martin stands as the master of the biotech sector. Buying calls is taking a bullish position in its most extreme form. MRPguy and many in the past. This value may or may not be the same as the current market value. More specifically, it tracks futures. Do you have any books to recommend besides security analysis and intelligent investor?

Moves for the same reasons, but obviously opposite directions. FS then posts about his chest pains and ER visits. Then you may profit over the time period. One edit, JNUG and JDST track GDXJ. An option is a contract that gives the buyer the right to buy or sell 100 shares of a stock at a certain price, on a certain date. Some true degenerates of their own. He is the Marmalade Manchurian, the Tangerine Tycoon, and our spray tan Stalin.

Most people just flip it like a commodity, myself included. The difference between the amount of the loan, and the price of the securities, is called the margin. Something we embrace, something we call each other, something we all are. That means you can lose more than your investment. He finally suffers an epic loss of money. The best traders have autism because of their distance from emotion. Who gives a fuck. CALLING ALL NEWFAGS AND NORMIES. It took my over 3 hours to write up, so I eventually grew tired and probably have missing spots.

Get it right and you can see a huge appreciation of value. Have you considered futures? MODS: Can we make this editable by others mods or something? Hedge with the right option or asset and now you have up to 500x day trading margin. None of the new mods can change the CSS. What fun would it be without options? They are tempting because they are cheap, but they are cheap because they are worthless. NYMEX light sweet crude oil futures contract, which is rolled each month into the futures contract expiring in the next month. Actually a really good question.

SPAN is constantly changing but such a complex system definitely has its exploits. Alright, so half you are going to understand this, and half of you are not. It does almost exactly the opposite movements of JNUG by the tick. Newcomers are usually berated upon asking the inevitable stupid questions that they could learn slowly from reading here, or just using a damn search engine. Say today is Monday. They move up or down depending on market forces, and can range from pennies to thousands of dollars per share. AMD and it would allow me to get it at a cheaper price, before it shoots up again.

Yeah I feel that. Roasts people often and roasts them good. The intrinsic value is the actual value of a company or an asset based on an underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors. Meaning for every movement within the underlying index or stocks, the 3x ETF moves well. Enjoy your time here at WSB. The next day, AAPL leaps to 130 upon great news. WSB holds a large cumulative position that can be seen below.

Originally they were used by farmers to sell future crops early and guarantee some amount of sales. Meaning if it finishes closer to your strike price, your option could be worthless because of that time decay. Time value is determined by the expiration date. Kind of ruined the whole thing for me. Yolo is what it means to be a WSB trader. This concept makes options a commodity themselves. Most people know what a stock is, but how and why stocks move is a different story. That same Joe Shmoe later buys FEB 17th XOM calls at 90, hoping for similar results.

It really helped me when evaluating an option on the fly. Futures can move suddenly and a sudden movement can make you lose a ton of money. Unlike mutual funds, an ETF trades like a common stock on a stock exchange. Chicken tenders at McDonalds are the least expensive for the most cholesterol. Tendie money is usually shameful and insignificant, but at least it got you tendies. Well yeah, when I sell the put option, I would have the needed funds, in case I have to buy the stock at the strike price. This stands for implied volatility. Is he is mother?

EDIT: Added a shit ton of stuff, fixed errors. Spoiler alert: Joe Shmoe Yolo was me. Volume: The number of shares of stock traded during a particular time period, normally measured in average daily trading volume. Tendies are what you get after you make a small amount of money. AP has seen the light, and is a penny stock evangelist. Educated trader, and mod of WSB. Unlike stock options each contract gives different number of future contracts. No need to pay interest or borrow shares as being short a future contract is being a writer, just like an options writer. Yes, you could do the same with options but even on SPY deep in the money call leaps are illiquid and have a time premium. Truly the worst thing you could be. YOLO or YOLOING is as much a psychological decision to embrace absurdism, and win with everything you have while risking it all.

With high frequency trading scalping is less guaranteed. Maserati, but one quick question. The ER is tomorrow. Is there a nice midway point out there? Look at a candlestick bar chart and have Bollinger bands show as a study. However, XOM ends up never reaching anywhere close to the strike price, and the options expire worthless.

The variety and price efficiency of futures makes things pretty attractive in this area. WSB likes to buy put option contracts on her. Feel free to add it to the guide with credit. Definitely not doing a naked put. WSB 10 bagger candidate for reforming the housing market. Only difference between JNUG and NUGT is NUGT tracks large cap mining companies and JNUG tracks the smaller caps, making it slightly more volatile and oh so much better. He repeatedly bets five figures on AAPL calls before earnings.

We will see how it goes once the money is transferred in and I start doing it. Also, since the present value of your futures contract is included in your margin calculation then if it goes strongly in your favor your position can quickly grow to cover its own margin and you can let it ride for a while. Not all companies do this. Basic hedge fund stuff. Basically scalping is using tiny momentum as usually there are small micro patterns in futures buying and selling activity where it will rise or fall a couple of ticks. Things would go badly if I sold a put on a stock like AAPL, and tried coming up with the funds to buy it, if the put does not expire. ETFs typically have higher daily liquidity and lower fees than mutual fund shares, making them an attractive alternative for individual investors.

Hundreds of random users are added as moderators for a few months. Get your self deep in the fannie. But for a reason. Of course there are options. Dark times for WSB. Should you buy one share of AMZN or one share of GOOGL? PPS, where high negative volume does the opposite. Usually the best time to buy or sell a stock is when the volatility is low.

Sarcastic answers are the only thing of true value here. Wallstreetbets is a community that has become infamous for the most wild west, moon or cardboard box trades on the planet earth. The higher the volatility, the more the stock is moving up or down. P500, but is not 3x. What are some good strategies? The value of the index fluctuates with changes in the price of the relevant NYMEX light sweet crude oil futures contracts. Okay, a lot of you have been YOLOing on faggot delights on SPY options. Photos from the 3rd annual meetup are posted. So, this is an intrinsically idiotic question. TSLA has extreme intraday movements and calls have an implied volatility of 40. Martin regularly tweets about the stock market, occasionally does a youtube channel, and livestreams fairly regularly.

They will hedge with the underlying futures until their minimum profit is the risk free interest rate. Exemplary of a social media platform that is unable to monetize itself. Volatility: The WSB favorite. Being in the money does not mean you will profit, it just means the option is worth exercising. Who is actually cashing out these contracts? CEO Lisa Su, Next Gen Processors, chips, graphics. There is no pattern day trading restrictions on futures.

But I believe this will serve its purpose, and maybe help to promote new ideas from moderately educated traders. Why the heck would I want to trade futures? Nearly all of the trades or statements he made on WSB were completely wrong or mostly wrong. This will hedge out any sudden market moves as that would likely affect both months. Truly the most suicidal, yet clearest shot to the moon. Trade your hearts out.

Most people on WSB do not exercise the contracts, but merely flip them for increases in value as the underlying moves. Founder of the sub, original yoloer. You can go long or short the near month expiration and the opposite for the far month. AMD is exercised at the strike price, I have the funds to buy it. This is to serve as a reference what values we hold, what instruments we use, and as a general place to educated the uneducated. How volatility is measured will affect the value of the coefficient used. We all want it. This will help you understand what to expect if you make the decision to undertake a WSB style trading career, so you can stay here and contribute to the yolo lifestyle or otherwise GFY. You only live once. Conversely, in options, only the seller is obligated to perform.

You can also trade 23 hours a day. Going long and short in various non correlated or negatively correlated assets to seek out a high sharpe ratio and have a higher risk free return that is market neutral. Why are you sitting on a 5k emergency fund that is making you less interest in a year than what I just made in 10 minutes? Futures is probably the best way to get your feet wet. AP blows up his retirement, swears off pennies and moves onto bitcoins. Specifically, An ETF, or exchange traded fund, is a marketable security that tracks an index, a commodity, bonds, or a basket of assets like an index fund. Truly the strongest technical indicator. There are several out of date correlations between popular futures like oil and say things like wheat that SPAN gives you margin credits on. Time decay really hits the worst the week of expiration. You should actually post this link in your post, I found it helpful.

Which essentially means I prefer to be in the money. Canadian trader who deals with mostly options. Hopefully this can serve to better the overall community. You mind if I edit it in and give credit? Trump happens to be. Volatility is referring to the price movements of a stock as a whole. Your assumption is correct. Additionally, intrinsic value is primarily used in options pricing to indicate the amount an option is in the money. Weak, spineless, and a term often throw around here.

Time is your enemy; the further out the expiration date, the less time decay there is. The greatest large cap pharma recovery of all time? Just like you can trade spreads in options, you can trade calendar spreads in futures. Crude Oil Index ER. AMD staying where it is for the next 3 weeks is very unlikely, hence i would go long a straddle, etc. Believe he has retired from reddit for the most part. WSB has very strong traders, and the most uniquely risky trading styles on the planet. Now what determines the pricing of options? Presumably bigger players than us who can actually afford buying stocks by the hundred?

OTM puts incase of a large drop, which I doubt but took into consideration. Even if you have to eat some commissions. SPY and SPX are great examples of very active option chains with expiries every other day. NUGT and DUST track GDX. And what determines the worth of each contract if you achieve better than the strike price? Bollinger bands close in on each other and bars are less tall. Anyone holding SUNEQ is the definition of a bagholder. One of the most active mods.

WSB is a place where you can take out thousand dollar loans, refinance your homes, cash advance all of your credit cards only to put it all on JNUG, and we will still love you. Piracetam in the Czech republic. Which is fairly high. Options account setup yet and want to learn everything possible before I start Option trading. There are free classes on Coursera and EdX that cover option pricing. NOM or BXOP or PHLX? All the exchanges are pretty different.

Now would the price for options be same for RBC or other brokers out there or is it different with different brokers. Could I ask simple stupid question. Is there any online school or any college or any other place where I can go learn how to trade options from the very basics of Calls and Puts. All of the places that have that data seem to want to charge for it though. Volume of a stock means, bad bad move. CBOE has a virtual trading platform capable of options trading. The intro chapters are the most useful, and free on that link.

They might not cover every practical detail, but will give you a good background in the math and theory which is tremendously helpful in real trading. What do you mean when you say NYSE or NASDAQ? Canadian and trade mostly on NYSE or NASDAQ and not on TSX. What are you interested in learning? RBC canada, I buy and sell through my investing account. Options and pushes a method of selling option premium and accepting risk based on probability. So yes, you should shop around. Having to keep time in check I am guessing.

You might be better served by contacting your broker or the exchange directly. Their free info is quite valuable. And, of course, wrenching losses. On March 7, one member announced a move into the penny stock Triangle Petroleum Corp. They want to be rich. Volume, meanwhile, has skyrocketed in 2016. DrFreshh wrote in December. Jeff Fischer, a longtime adviser for the Motley Fool, who calls the action in WallStreetBet reminiscent of the late 1990s, when traders flocked to the Raging Bull and Silicon Investor sites to tout positions.

Most were on WallStreetBets. Drake used it in a song. In one corner of the Internet, though, praise rained down. UWTI for more than a few days; in some cases, they are in and out in minutes. Are we encouraging risky behavior? Rogozinski, for his part, said he worries that a huge early win can give new traders a false sense of confidence. YOLO spirit: Highly volatile, it uses a combination of derivatives and debt to amplify bets on oil, creating opportunities for quick profits. Katie Marriner contributed to this story. Life savings on the line, we have hit the gold mine.

UWTI for LIFE baby! Young investors are generally encouraged to take on more risk, since time is on their side. History tells you all the patterns. Ask me anything and I can tell you why its bullish like none other, or the yacht is on me. There were plenty of days with upside, too. Even high schooler Rozanski lost on UWTI. ETNs are unsecured debt notes, so investors can lose everything if the underwriter goes bankrupt. The joke is we are all aspiring millionaires. This story was first published on March 30, 2016. This is it boys and girls!

But WallStreetBets is lively, engaged and growing. This is an opportunity of a lifetime! Full disclosure I did a bunch of Xanax and drank a bunch of coffee 30 minutes ago. Most of them, if not all of them, will be losing money trading it. Reddit mentions of UWTI, counted by posts with the ticker in the title, went from one in 2013 and 12 in 2014 to 381 in 2015, according to a MarketWatch analysis. He currently faces seven counts of securities fraud and conspiracy in connection to previous work at a hedge fund, and he faces up to 20 years in prison if convicted. The promise of quick money has long been a draw for investors with big ambitions and high tolerances for risk.

WallStreetBets calls its subscribers. Getty Images Martin Shkreli with lawyer Benjamin Brafman after a hearing of the House Oversight and Government Reform Committee in February. Shkreli actually did it. He is living their dream. Comeau, in an email. He posted a screenshot to WallStreetBets as proof. YOLO waiting for a gap up tomorrow. UWTI are particularly dangerous. And you definitely need to have a thick skin to partake. Pennsylvania trader who posts frequently to WallStreetBets.

Each day, WallStreetBets moderators ask subscribers their planned moves for the session. Martin Shkreli is a role model, and irreverent traders trawl for tickets to quick wealth. FD to a real person when talking about a trade and they just start to glare. By now delights is a commonly used term at most trading desks. How does volume play into your decision making? HFT, but most people are saying that those days are long gone. After trading futures I can think of a few reasons why actually.

It might sound sketchy, but I did a subscription to a day trader for 1 month to watch his daily stream. You have to find yours. This is just one of many types of trades that I do. Its more of a methodology than a method. Very rarely do I care about fundamentals. Good trades are not difficult forgotten. Is it still possible to get into that today?

Just curious if Lightspeed came out on top after trying others. Everyone finds there own method in this game. Volume is the biggest clue, but also the speed of the move. First you start with your stock screening at night. How do you know when you profit off a stock you bought a different prices? Do you mind expanding on this? If a trade is acting the way I expect or want it to act then I keep it. Sorry for all the questions. If you do multiple, are they normally related? Do you know of any youtube channels that you recommend for newbies like me? When they say leverage is a double edged sword they are not fucking around.

What would be a typical return in a year? My purchases and sales can actually affect the direction. Also, how many hours per day would you say you put into trading or looking at potential stocks? For reversion plays, I want the trade to go against me so I can get my whole fill. How will i know when i profit? This methodology tries to disregard indicators as much as possible, since most of them are based on what price is already showing. Limiting losses is the first and most important part of learning to trade. Have you let your trades increase as you make more money?

If you do not know what you are doing and you have absolutely no track record, leverage will ruin you. What are your thoughts on high frequency traders? More than 6 months is an investment IMO. The OP has had years of practice. Have you developed a rule to take profits after a certain point or based on lines of resistance? They definitely must help you as they bring the momentum whichever side is winning between supply and demand? There are hundreds of good trading stocks to choose from, overall more opportunity. But if you pay attention you can catch on to trends.

By volatility, I mean whole market vol, not just individual names. What did you study in? Hi, thanks for doing this. If so, I assume this is a method I can look up? They have 5 consecutive quarters of losses increasing each time. How do your strategies change during a bear market? Volume profile has been really big since we went digital. It was an awesome trading day, and honestly should have been a six figure day.

On average, how many trades do you make within a week or a week? For example, breakout plays are kept tighter than reversion plays. Prior to that I was on Sterling. LS for a year. ZB are some of the most watched tickers by professionals in the entire world. Call it like 5 minutes.

Start with 3k so that you have 5 tries. Any chance you could provide a brief example? Again, AMA but I can understand not wanting to tell that detail. Do you think it would be possible to codify your experiences into some algorithms that make similar trades? What led you to short it though? When the supply runs out it causes a shortage, and the price is gonna go up. How did you develop your own trading method when you are just starting out? If it starts to falter, I adjust accordingly. Thanks for your AMA.

Basically identifying when someone is trying to manipulate the stock price. Not sure if that makes sense, so let me try and explain another way. How much have you made these last couple days? If it continues lower I just dump it and move on. So your friends are still running their own custom software today and making money? Yes I could increase risk tolerance with a significantly bigger account. That was my first successful setup. The current market is perfect for trading, not investing.

Any tips on someone who is interested in day trading? CONSTANTLY shifting, and the number of bids and asks is constantly changing. Inversely, heavy selling on the bid is a bearish sign. Get a cheap charting package, cheap alert system, and just trade as small as you can. If so, how do you select your individual stocks? There are a couple respectable firms that have some training like SMB Capital and T3. VWAP used to be big and people still use it today. Day traders like volatility since the market moves more, giving you more trading opportunity in a given day.

Or what exactly are you looking for and how does it play into your decision making? Another problem is not calibrating your indicator. IB when and where to move your orders from your programming environment of choice. Why equities over futures? Are you methodically reacting to news, or evaluating events and applying expertise to make a decision? That and chart patterns. If you can catch the point when supply starts to run out, you can nab some of the last remaining shares at that price level, and within a couple minutes the supply will run out at 10 and the next available supply will become available at 10. You must make your decision on price action and use the indicators only to confirm it or give you an alert. Short term trading is purely supply and demand.

Having a little skin in the game is important. Also, how did you get into this in the first place? SMB or T3 will give you more. Just finished trading for the day. Do you trade one stock at a time and focus on it or do you manage several stocks at once? Also, did you go to college?

How do you narrow it down? Hey dust, thanks for doing this. Just have one question. Stops should be taken when the trade no longer looks good. Way way harder than that sounds. The stock is going to plummet? If you can code, then do that!

No fun, but it happens. How many different stocks or options do you hold onto on average within a day? The way it works is pretty simple, really. Bought my first house with trading profits at 23. Options settle same day, and futures settle immediately as far as buying power is concerned. Then you look at the charts. If a breakout play fails, then I will often sell half. Useless for actual work in the financial markets.

If you time it right you can ride the price movement and profit a few cents per share. If you want to learn trading, then ask a more detailed question. Size based on that. Thanks for doing this AMA and providing some insight into daytrading. You need to find levels of either support or resistance, both historically and recently. That was in 2010, so 13th year.

Do you scan through 100 or something closer to 10? Mine was getting short a buyout move and getting run over. MACD for day trading? You can even use the basic bars on the bottom. Not usually reacting to news, reacting to volatility. You say now is a good time for trading and not investing. For example put the profits while day trading in long equities. If you join them, you will learn to trade like them which is fine too.

It happened in the morning, so I shut my software down, woke up the wife, and took her to breakfast. Can I pm you in the future for specific questions? There are very few overnight success stories in trading. Futures are extremely efficient instruments, for the reasons you list. Particularly the math on your pnl. What does your annual return look like as well? After thousands of hours of screen time you see the same patterns emerge over and over. For example, you might see that the bids are constantly increasing without being taken, but asks are getting snatched up as soon as they appear.

LS is so much better in terms of speed, stability, functionality, and aesthetics. Just a curious retired futures trader. There are platforms you can use off the shelf that expose proprietary languages and let you plug into various brokers, but I have no real experience with those. Once you can trade tiny size and not lose. What criteria do you use to filter out your initial candidates? The only place you can find really good volume profile for free AFAIK is with TDA using the Think or swim platform.

How much capital did you start off with since you were fresh out of college? What do you like about lightspeed over others if you have compared? HFT, but I think you can still make a ton of profits with slower trades. What do you think is the most valuable resource for learning about day trading? Is there a specific video series or website you recommend? What is some advice you would give to a new daytrader? You have to live to trade another day. Finding stocks that you expect to move tomorrow, making a watchlist and plan, etc.

Scanner with lots of charts to place interesting looking candidates. L2 while day trading futures and found it completely useless, but I feel that with equities it would definitely give you an edge. It depends on your personality and size of your stake. The third time I started making money. Humans make more poor decisions, so I much prefer for more humans to be in the market. MACD, RSI, and other indicators seem to not help me out at all.

Do you know how I could find a day trader or a firm who might be willing to take a bit of money, and then add it to their own account, and take some profits as a fee? If you beat the SPX, you did better than many many highly paid fund managers. How do you make a living doing this? My roommate is a day trader aswell, and he is still learning the ropes. L2 data that can really help. So how much capital are you playing with daily? Most importantly I learned how to avoid those situations as much as possible. Would you even recommend it to anyone? Volatility is everything to a pro trader.

Is it possible to be both a long term trader and day trader? Really tho, the software does do it for you. How many different stocks are you looking at on a given day? You look at your level two and see how many bids and asks there are. Since I support my family this is the number where my comfort level goes from frustrated, to stressed. Can you talk about Lightspeed trader please. Yes abnormal volume situations are very important. You plan this ahead of time based on expectations. Also due to volatility leading to bigger moves, it can also mean that your potential profit per winning trade can be much bigger vs the norm.

There is nothing more valuable than screen time. The second time, I broke even. Any sites, info, books, etc. Do you sell and accept your losses, or do you hold to attempt to recover? Always been intrigued by this. You have to have that drive, and be able to afford no income for a year or more while you learn.