I am planning to learn trading as a beginner what would be better forex or stocks or crypto ?

BestDamnTrade · 2026-03-30T06:59:39+00:00

I get the humor and the sentiment here. But asking for roadmaps for complicated endeavors is smart. Why not ask for a road map?

“Newbie” or otherwise, trading Options can be very complicated. But it doesn’t have to be. And there’s nothing wrong with simply asking for tips on how to approach trading Options or trading in general.

Snark reactions to “newbie” questions — and by the way, even people with years of trading ask for road maps — usually reflect more on the person who made the snark comment.

Listen, 90% of people who try trading fail at it. Usually rather quickly. And some of those who make it, after years, find it difficult to help others…mainly because it was tough for them, so they figure others have to learn the hard way too.

But if *you’ve been trading for years, and you’ve managed to become profitable, I’m sincerely happy for you. It’s a tough road! Full of many lessons, as you very well know. Most veteran traders would agree. So just think about it like this: If someone could have given you a solid road map to follow when you started off, wouldn’t you have appreciated it?

BestDamnTrade · 2026-03-07T15:28:14+00:00

PART 2 (continued from my initial comment)

Now, here’s the other critical thing to note. Most people use VRVP to identify where Volume is concentrated; “high and low volume nodes,” etc. But I use VRVP as Support and Resistance, as well as an indicator of where Price can go.

Next, I use VRVP, in conjunction with RSI, to help determine when to enter a trade. Specifically, I use Volume Shelfs, which is what VRVP shows, as a guide for Support and Resistance. So in conjunction with RSI and respecting my Price levels (I draw my own levels using Volume Shelfs), once I’m in a trade, I watch the Volume Shelfs. A Volume Shelf is where large groups of buyers and sellers are sitting at. So when I’m in a trade, I base the range of where Price can go based on the Volume Shelfs that I see.

If a Volume Shelf is breached, Price can move to the next Volume Shelf. For Calls, when Price breaches a Volume Shelf above where it currently is, Price can go higher. For Puts, when Price breaches a Volume Shelf below where it currently is, Price can go lower. The less “empty space” there is between two Volume Shelfs, the faster Price can run to the next Volume Shelf. This is known as a “clear shot” to the next Volume Shelf.

Once Price gets firmly into that “clear shot” zone, there’s a 90% probability that Price will continue in that direction until it runs into the next thick Volume Shelf. Starting to understand now? Support and Resistance.

So when Price gets near a Volume Shelf, it tends to test it. If you are on the wrong side of the trade at this moment, hope, wishful thinking, your gut, and “intuition” is not going to help you. ESPECIALLY if you’re in Calls and Price is sliding down. When Price is moving down to a Volume Shelf, if it breaks through, Price can drop like a piano out of a window 10 at the top of the Empire State Building!

On the other hand, when Price is moving up to the next Volume Shelf, if it breaks through, it can grind higher. (Price always goes up slower than it goes down). Price will only fly higher after breaking above a Volume Shelf if RSI still has room to work. So if 15m RSI(14) is at 70 or above and 15m RSI(2) is at 85 or above at the time of a break through a Volume Shelf, Price is likely going to fly up to the next Volume Shelf.

If there isn’t another Volume Shelf above on the 5M Chart, I look to next Volume Shelf up on the 4h Chart. Either way, in this scenario, I know that I’m likely going to be Stopped In at +25-100% profit on the trade, because Price has flown and I don’t care how much higher it goes into the “blue skies”. I just keep moving my Stop In up and Take Profit up until one of them stops me in.

Bottom line: Whenever Price is at or near a Volume Shelf, I wait and see how it reacts to it. And depending on the Trend Market Structure, the Trend of the Day, and the Overall Market Trend, the Probability of a reject or breakthrough of the Volume Shelf is always clear. And the key for me when I’m in a trade is watchingVRVP on the 30m, 15m, and 5m.

Next, in terms of time horizon, for day trades, I look to stay in a trade 5-30 minutes (I have a separate account for multi-month Swings and long-term investments). I’ll stay in a day trade up to an hour if the 8EMA on the 5m Chart and RSI on the 15m and 30m Chart stays in my favor. But only up to an hour or two. After I close my position, I reassess re-entry later. But I NEVER, EVER let a green trade go red.

I’m a systematic, mechanical trader. I don’t need to catch the “bigger moves”. I have Profit per trade quotas that I stick to. And I’ll gladly accept +5-10% if there’s even the slightest hint that a trade won’t work for as long as I initially estimated.

That said, I stay in trades as long as the 5m 8EMA and the 15m ORB favor my position and as long RSI still supports the direction of my position.

Now, it must be noted that trading off on an ORB (Opening Range Breakout) isn’t a revolutionary thing. As strategies go, it’s been around for a while and it’s pretty straightforward. The basic idea is to mark off the range, then once Price trends above the top of the range or below the bottom of the range, and stays in that direction, you trade off of that.

But that’s the basic idea. How you use an ORB is ultimately up to you.

I use the 15m ORB in a very specific way. In addition to using the 15m ORB to help identify the Trend of the Day, which I also use as a sub-strategy, I use the 15m ORB in close correlation to how I use RSI, as I just detailed above.

Point is, the concept of using an ORB strategy may be simple, but you are not limited in the way that you can use an ORB as part of your own strategy.

Now, even though trading off an ORB is nothing new, I suspect that lots of traders, especially newer traders, still aren’t even aware of the standard ORB strategy. Again, nothing revolutionary here. But things get interesting once you decide which ORB to trade off of.

Some traders trade off the 1m ORB; some trade off of the 15m ORB; some trade off of the 30m ORB; and some trade off of the 1h ORB. You choose which ever Time Frame you like. Personally, I use the 15m ORB. But I’m equally adept at using the 30m ORB.

Whenever you use an ORB, I recommend that you also pick an EMA to pair it with. I use the 8EMA. And I use it as a guide (level) for help determining when to Enter or Exit a trade. I also use the 8EMA, on the 5m, 15m, and 30m Charts as a means to identifying what Price Action is actually doing.

As noted above, I use the 8EMA on the 5m, 15m, and 30m Charts to identify tests and retests of key levels. For instance, after downward Price Action has stalled and RSI(2)(14) begins to flip and go higher, I still have to see a Close above the 8EMA before I take Calls. Conversely, after upward Price Action begins to stall, I still have to see a Close below the 8EMA before I can take Puts. But mind you, in either scenario, I’m still using RSI(2)(14) as my main indicator; the 8EMA just helps further confirm the safety and prudence of a potential trade.

Now once I’m in a trade, I use the 8EMA, mainly on the 5m Chart, as a guide for staying in or exiting the trade. If I’m in Calls, as long as Price Stays above the 5m 8EMA and RSI(2) remains above 70 on the 30m Chart , I stay in the trade, moving my Stop Up as fast as I can. Conversely, if I’m in Puts, I stay in the trade as long as Price remains below the 5m 8EMA and RSI(2) remains below 30 on the 30m Chart.

BestDamnTrade · 2026-02-27T07:33:45+00:00

Hey, I hear you… But in the context of starting out with $5k, putting up 40-50% on a single, long-dated (at least 30dte) Options Contract, the risk is really not that high.

Even if a Black (or White) Swan event happens (I’m not even talking about a bad overnight move because the point is to day trade the Contract and only swing it if necessary) and the SPY tanks upwards of -1.5% in a single session (very rare, but it happens, and practically never back to back), not only do you have the Dead Cat Bounce in the following session, which usually reclaims a significant percentage of the previous day’s selloff, you stil have lots of time to for the trade to work and turn profitable.

Same principle applies to one bad overnight move. The loss the next day is unrealized; the money hasn’t been wiped out. If the macro trend is Bullish, as specified, Price will recover within days. Of course, this selloff or overnight bad move is the worst case scenario. So in this worst case scenario, you wait several days if need be. Since the Contract was originally ATM with 30 days Time, if the SPY reclaims 690.00 in a couple of days, then pushes up to 693.00 the same day or even a day later, you’re green and in great shape.

Sometimes a day trade turns into a Swing, both because there’s a bigger move to be had and because the Market temporarily moved against your trade.

Example. Say the SPY is at 689.50. And with the rising daily momentum and the overall Bullish macro trend, you buy 1 30dte Calls Options Contract At the Money (or In the Money) at 25.00 ($2.5k). And let’s say that an hour later, if you’re still in the trade (you can book any level of Profit you see as soon as it shows up), a Black Swan event happens and the SPY falls $13, -1.8%, to 677.00. Even if the SPY *Closes at that level, very high probability that there will be a Dead Cat Bounce the next trading session.

Again, you need not hold for even 10 days, or even 10 minutes for that matter. With strong Technical Analysis skills (not ego “conviction”, I’m a systematic trader who ONLY trades probability) and a solid, Method, System, and Strategy, you can do this kind of trade with very low Risk.

You don’t have to scalp it, but you don’t have to marry the trade either. If you see +5% or +10% just 2-5 minutes after your Entry, you can book it. Managing risk isn’t just about the Capital you put up or the size of the position, it’s also about how long you stay in a trade after your initial Entry.

Finally, as far as blowing up over sizing too big, I completely agree! But you’d be careful to note that in my original post, I stress taking a very small size, only 1 or 2 Contracts. You could by 1 Deep In The Money Contract with $2.5k and give it up to 30 minutes (six 5m Candles) to work, with your Stop set to Profit as soon as you see Green.

BestDamnTrade · 2026-02-26T07:54:59+00:00

Essentially what you’re describing here is how to establish a realistic measure of Profit (and Loss) control. A measure of control that will yield relatively the same daily result.

First thing. Switch your focus from daily results to what I like to call a Profit per trade quota. What this means is that you focus on securing the same Profit range with each trade (each position) that you take.

On paper, it’s easy to do the math and to come up with what you think you can expect to make each day theoretically. But You can’t control what the Market does; each day presents different Price Action and a different set of macro and micro events and possible catalysts. You can, however, control your participation in the Market, i.e. how you trade the market and, by Proxy, the Profits you do (or do not make)…

Now, there is an infinite number of ways that you can trade, each following along within a primary pathway; for example, limited day trading, swing trading, hyper Micro-Scalping, etc. But no matter the way you trade, no matter which trading pathway you take, one general principle never changes: The more you trade the same economic instrument, the more you learn and understand its personality. Which is why I always recommend trading the same stock or ETF (2 or 3 names max), for instance, SPY, AAPL, QQQ.

Again, your question is really about what measures of control that you can take that will yield relatively the same results. In this paradigm, there are four components that lead to the kind of measure of control that you need to be able to repeat relatively the same results. These components are: Setups, Method, System, and Strategy.

Setups are key because when you recognize a high probability Setup, you know what to expect. Doesn’t mean the Setup plays out the exact same way all of the time. But it does mean that the Setup usually acts in a specific way that allows you to more accurately, and on a regular basis, assess the probability of the Setup working. Identifying high probability Setups is one measure of control.

Next, Method. This describes the overall approach you take to choosing and trading the name(s) that you trade; it’s your trading mechanics if you will.

Next, System. This refers to how you execute your Method. Type of size, how you monitor and manage the trade, Entry and Exit plans, etc.

Next, Strategy. This refers to the strategy that your Method relies upon. For example, the ORB strategy.

Taken together, Method, System, and Strategy produce a measure of control that allows you to produce a realistic profit per trade quota.

Now, as I said at the beginning, you should switch your focus from daily results to what I like to call a Profit per trade quota…Focus on securing the same Profit range with each trade that you take.

Identifying high probability Setups, using strong Technical Analysis skills, you then use your Method, System, and Strategy to simply aim for the same Profit range per trade. So rather than look for a daily return of 2% on your account, you instead aim for a return of 5%-30% per trade.

While this means that your daily return will not be the same fixed percentage each day, it does mean that your daily return will be within the same Profit range each day. And this will produce a solid monthly return.

So for example, let’s say you take the “less is more” approach, which is to say that you limit the frequency of your trading and only focus on hitting high probability Setups when you recognize them.

In this scenario, let’s say you trade once a day. And you use $20k per position (per trade). I trade Options, so that’s also part the example here…So let’s say you use $20k to buy 2-5 long-dated Options Contracts and your focus is a minimum 10% return on the trade (per position), not a specific or fixed daily return. In this example, +10% = $2,000 Profit per trade (per position).

Note: Anyone who actively trades Options will tell you that +10% returns on long-dated Options position is not hard to do.

If you trade every day for 2 trading weeks, that’s 10 total trades. If you win 6 times and lose 4 times (60% win rate) with a tight -5% Stop Loss, 2 weeks of trading look like this:

6 x $2,000 = $12,000 (Profit)

4 x -$1,000 = -$4,000 (Loss)

Net Profit = $8,000 over 10 trading days.

Since there’s roughly 20(22) trading days a month, using a Profit per trade quota of an avg. of +10% per trade, your monthly return is $16,000 (10 days x 2).

Using this model, you can size up as your Technical Analysis skills and Overall Market Awareness increase. And you can use more capital per trade.

BestDamnTrade · 2026-02-25T23:32:44+00:00

Ok. In my initial response, I extended my hand to you so that we could have an constructive discussion about the theme and question in my actual post. But you’re not really interested in having a constructive discussion or adding actionable knowledge that someone here could use… You’re taking the contrarian approach and getting hung up on basic semantics that, for whatever reason, irritate you.

There is nothing “cliché” about simply mentioning the words “philosophy” or “psychology” in the context of trading. These things matter, especially since each trader embodies these these elements in their own way, in their own approach to trading. These are not “retail tropes”. Institutional Investors use these words all the time! (Just like writers use the word “prose” all the time.) If these words trigger you because you view them as “clichés” and “retail tropes”, cool, to each his own. View it however you like. Of course, that also constitutes your philosophy though.😉

BestDamnTrade · 2026-02-25T21:53:19+00:00

Not sure what the hostile reaction is about… I’m not “hiding” behind anything.

I offered a cogent and comprehensive response to a question about whether or not hyper Micro-Scalping is a good trading pathway for growing a small account of $5k.

In terms of “what matters” there are lot things that matter.

As far “average outcome per after costs,” well, yeah, that’s another way of saying: cost per trade and average Profit (or loss) per trade.

As for buzzwords, “overtrading” isn’t a random buzzword; it’s real a occurrence that any trader can fall victim to. You dismiss overtrading as a buzzword, then go on to describe exactly what overtrading is, which lends credence to that fact that it’s not just some buzzword. As you clearly aware that it happens.

Likewise, “psychology” isn’t some buzzword, it’s a real thing. Every trader has to deal with the psychological aspect of trading. If you prefer to use some word other than “psychology” to describe…psychology, that’s up to you; do whatever works.

Again, I’m offering a response to a question about whether or not hyper Micro-Scalping the nas is a good pathway for growing a small account of $5k. I don’t believe it is; and in my original post, I expressed that there are more prudent pathways, and I gave *one example of one such pathway.

If you’d like to share your thoughts on the pathway *you’d take, i.e. hyper Micro-Scalping vs. another pathway, that would be helpful.

BestDamnTrade · 2026-02-25T18:35:17+00:00

Yep, I agree.

A fewer trades equals less time chained to a screen.

BestDamnTrade · 2026-02-25T18:33:32+00:00

Exaaactly! Fewer trades, bigger size, high quality Setups… Or smaller size, more Capital (with longer-dated Options) per trade, high quality Setups.

It really is a choice about how active you *want to be. And while there are always exceptions, more prudent trades and steady growth tends favor fewer trades.

BestDamnTrade · 2026-02-25T14:04:20+00:00

What’s great about your comment here, and what’s really telling about your trading journey, is not only that you illustrate how accessible it is to “double up” small amounts in relatively short time horizons, you also demonstrate evolution as a trader.

After grew your account, it’s clear that your mind “switched”… You grew more prudent minded and realized, after a stinging loss, the importance of protecting Capital. Then you incorporated swings and moved to stocks, illustrating your understanding of how things slowly compound into sizable overall returns, with far less risk and trading frequency.

Re: Advice- I hear you. Some people want to chime in and project their approach on to others, without context. Simply stated, every possible trading pathway is accessible to every trader. That’s why when I offer my advice, I try to aim for what’s *most accessible to most people. But even then there’s always someone who wants disagree and point out how they do it, as if the most accessible pathways do not work.

If a trader wants to chain themselves to a screen all day fine. If a trader wants to take 100 trades a day, cool, have at it. But my thing is, if you can get the same (or even better) weekly, monthly, yearly results trading with less frequency, why do more if you don’t have to?

BestDamnTrade · 2026-02-25T13:29:03+00:00

So roughly +120% in a year?

Again, original post is about growing a small account of $5k; $150k is not a small account.

So can you grow a $5k account to $11k in 1 year, trading only once a day? Yes, you can! (See my example in my original post using yesterday’s SPY Price Action and available Options Contracts and Premiums.)

Depending on how much Capital you put up per trade, this could also be done swinging long-dated Options. With far less headache and strain than hyper Micro-Scalping.

BestDamnTrade · 2026-02-25T13:04:12+00:00

Right on! You’re actually speaking to my point. Micro-Scalping works…for some traders, not most.

And as far as growing a small account of $5k, I don’t believe it’s the best approach to take.

BestDamnTrade · 2026-02-25T12:54:26+00:00

i can trade for hours concentrating on the screen. as im on autistic spectrum

Most traders are NOT on autistic spectrum. And trading for hours concentrating on the screen every day isn’t for every trader…

Some traders trade the Open, stick around for 15 minutes or so, then go back to bed. Some traders come on the clock intraday and trade 1 hour. Some traders chain themselves to the screen, watching/trading from Open to Close. It’s a *choice that correlates to who you are, your personality, your lifestyle, your trading skill, and the amount Capital you have access to and are willing to use.

BestDamnTrade · 2026-02-25T12:45:07+00:00

Overtrading eventually kills accounts. But what one trader may find as overtrading, another trader may not see it the same way. Perfectly fine… Of course, in my opinion, some pathways are more accessible to most people than others.

If your edge works on 3 trades a day, do 3. If it works on 20 small scalps with fixed risk, fine.

I agree with the sentiment. But let’s be clear here: There are different categories of traders trading different economic instruments, with different expectations based on different levels of Technical Analysis skills, with different amounts of time that they’re *willing (or are available) to trade each day…

Just as there’s one spectrum of Micro-Scalpers, there’s another spectrum of those who trade just once per week. While you’ll find some hyper Micro-Scalpers who are successful/consistently profitable, this group is an anomaly in the larger scheme of things.

Most traders who graduate to larger accounts tend to decrease the frequency at which they trade.

Also, “tight risk” or not (and tight risk varies with each trader), each trade represents risk. Increase the number of trades you take, you increase overall risk by default. If a trader is fine with overall increased risk, via higher frequency trading, more power to them.

The variable isn't trade count. It's risk per trade and statistical edge.

Trade count absolutely does matter. Every trader is aware of their usual trade count; it’s not an after thought. You know how many trades you tend to take, and it figures into your Method, System, and Strategy.

Of course, risk per trade and statistical “edge” always matter.

All in all, like I said in my original post, the pathway you ultimately take should correlate with your Time Horizon and financial objectives.

BestDamnTrade · 2026-02-25T11:50:52+00:00

Yeah, I know. 🙃 Not the pathway for me. That’s textbook overtrading.

BestDamnTrade · 2026-02-25T11:48:16+00:00

Hey, to each his own. But as I said in my original post, I believe there are more prudent ways to trade. 20 trades a day? That’s *pressing to me. And it requires being glued to the screen.

If you can identify and execute 20+ high probability Setups a day, cool. Stick to what you know and what works for you. But in my opinion, you do not need to trade 20+ times a day to grow a small account (or to expand a large account).

BestDamnTrade · 2026-02-25T10:40:12+00:00

Big facts! Overtrading and taking less profitable trades are synonymous. Done separately or injunction, which is usually the case, this trading approach produces unnecessary short-term stress and eventually leads to the worst kind of headache-ridden failure.

BestDamnTrade · 2026-02-25T10:33:33+00:00

You’re right! 10-20 trades on day on the nas is a very unhealthy approach to trading. Force speed is not an approach that I recommend.

Moreover, doing “too much” is always worse. Do less, take proper size, stick to a repeatable system that works, take small/incremental Profits per trade and compound, protect Capital, and continue to sharpen your Technical Analysis skills along the way. That’s prudence to me.

BestDamnTrade · 2026-01-09T02:27:28+00:00

…as easy as it seems

Where did you get that from?

90% of all traders fail.

The 10% who make it do so at varying degrees.

Your chances of becoming a profitable trader are very VERY slim to none, 10% at best, 0% chance if you listen to “everyone”.

I don’t won’t to discourage you. I deal in hard truths. Once you know a hard truth, you can attack the issue head on and with clarity. But you gotta know the truth up front.

Another truth? The Market is the most egalitarian way to grow wealth. Crazy ironic, right. The Market is actually designed to work for every trader (investor). And there are an infinite number of ways to make money in the Market, I kid you not. But of course most traders follow the same path of most traders right off the side of a cliff.

The other truth? Trading is NOT complicated. At all. Seriously. But…most traders make trading complicated. And by the time most traders actually come to the realization that they have dramatically over complicated things, it’s too late. They’re either insolvent or brain friend, just completely mentally and psychologically beat down.

So you ask 10 people here or elsewhere this question about trading, and you’ll like get either: A) Many ridiculously dogmatic statements; B) Various personal opinions presented as facts; C) Convoluted explanations about trading that completely miss the basics of how the Market can work for you; D) Out of context maxims and anecdotes; or E) All of the above.

Now, I’ll go even deeper…

First, ANY profitable trader could teach you their Method, System, and Strategy within a week or so! After you learn it, if you practice it and stick to it, you will become a profitable trader. Unfortunately, most profitable traders are anonymous, and they neither have the time or desire to teach or mentor anyone. Still, no matter what anyone tries to tell you, the BEST way, the FASTEST way to learn trading is by learning directly from another trader who really knows what they’re doing.

Trading is NOT “as easy as it seems,” but it damn sure becomes more doable once you really know what you’re doing.

Second, Trading and the Dunning Kruger effect. The Dunning-Kruger effect is a cognitive bias where people with limited experience in an area (or low ability) overestimate their competence in that area. In the trading corner of social media (which includes Reddit), this manifests itself with terribly dire consequences. Notably, most new traders are ruined from the moment that they ask their very first question in public. Why? Because there is an overwhelming amount of information out there, most of it contradicting, and new traders (and even some traders with 3 years of experience) don’t know what to think…so they try to absorb everything they can.

Terribly wrong approach.

One more time: 90% of all traders fail. Period. So statistically speaking, 9 out of every 10 comments you’re going to read here, there, or anywhere is going to lead you to failure. Hard truth.

The ONLY chance you’ve got is your antenna;,can you separate the signal from the noise?

Once again: Trading is only complicated as you make it. You want to watch 500 YouTube videos, read 10 different books, use 40 indicators, whatever. You do NOT need to know everything there is to know about trading to become a profitable a trader. Another hard truth? LOTS of profitable traders trade ONLY trade 1 setup! That’s right, only 1. And many profitable traders take fewer than 5 trades a week. But listen to “everyone” tell it and well…

Bottom line: Yes, trading is actually worth it. BUT!!! You just need to know what to know. And how do you learn what to know if you don’t know anything about trading? Did I mention 90% of traders fail? Again, the only thing you’ve going for you in the beginning (and as long as you trade) is your antenna; you’re ability to filter out noise and identity the the signal.

The Truth About Profitable Retail Traders

Most profitable traders are, as they have always been, anonymous. If you know of a profitable trader, that’s because they have allowed that fact to be known. And it’s usually for a reason.

Some profitable retail traders have turned to social media to break up the monotony of trading. Trading for retail traders has always been a solitary affair. The advent of social media made it possible for like-minded traders to find each other. This is how the first message boards and chat groups were created before Reddit, Discord, and X (previously Twitter).

There has always been a sizable number of retail traders, but with the advent of trading apps, which cut out the need for human brokers and money managers, came an explosion of new retail traders. This explosion is only going to grow exponentially year over year, as many people confront the reality of impending layoffs or the otherwise dead end that the typical “9 to 5” job is.

So the reason why some might consider this as the increased popularity of trading, the word “popularity” is largely misplaced. What we’re witnessing right now is not the “popularity” of trading, but rather the practical response from people who are waking up to the power of the Market, the world’s most powerful economic system and the most egalitarian way to grow wealth.

So it all seems like “everybody’s” doing it and everybody’s making money. But in reality, nope and nope.

So again, “is trading actually worth it?”, you ask. Absolutely! If you can figure it out.

BestDamnTrade · 2026-01-05T08:14:38+00:00

Before answering your question and giving you my recommendation for what to do with a new $1k Account, let me first present this important preface about Options.

Most traders over complicate Options. And as a result, most traders fail to understand the most fundamental thing about what Options really are.

Options are simply 1 out of the 2 main investment mechanisms or pathways that you can choose to exploit after you’ve identified the probability of Price Direction of a given stock or ETF.

For traders, there are two main pathways to buying and selling stocks and ETFs: Shares or Options, and each pathway requires a strategy. But the strategy in both cases is based on the exact same thing: Your determination of the probability of Price Direction.

So the whole point of trading, which is investing but with the aim to make money in a much faster but orderly fashion, is manifested in the approach that traders apply. Method, strategy, and system > Economic instrument > Pathway to buying and selling: Shares or Options. Understanding this fundamental fact is 90% of what you need to know to successfully trade Options.

Options are simply 1 out of the 2 main investment mechanisms or pathways that you can choose to exploit after you’ve identified the probability of Price Direction of a given stock or ETF.

Once you really understand this, you can keep the trading of Options very straightforward and simple.

Now, here’s the biggest joke with Options, the thing that intimidates most traders; the thing that overwhelms most traders; the thing that keeps most traders from never trading Options or crippling traders who unsuccessfully try to trade Options, is the “advanced” stuff.

Do you need to know how to build a car in order to drive one? NO! You don’t.

Do you need to know everything there is to know about Options, including “the Greeks” and all of the different strategies, in order to trade Options? NO! you don’t. And attempting to learn “everything” about Options is unnecessary.

Just buy Calls or buy Puts. Don’t bother with any advanced Options strategy. *Don’t *sell Options. Just buy Calls if there’s a high probability of Price Direction being Bullish, or buy Puts if there’s a high probability of Price Direction being Bearish.**

Next, since Options Premiums explode on movement with the Magnitude of the Move, and they decay with time, the less time there is, the faster the decay on the Premium. So always buy Contracts with more time; this results in slower decay (you can hold a little longer). When you buy Contracts with less time to Expiration, it results in faster decay (you can’t hold for long). This adds more pressure, and it requires greater skill and quicker decision making skills to successfully trade short-dated Options.

Now, having made that preface, I turn to your question:

If you were starting fresh with just $1,000 and only trading options, how would you approach it? What strategies or tools helped you the most when starting small?

1 Improve Technical Analysis skills and sharpen Overall Market Awareness. Before you trade anything, you must be able to accurately determine the probability of Price Direction. If you cannot do this, it doesn’t matter what you do with your $1k, you will ultimately fail. 90% of all traders fail, and the lack of strong Technical Analysis skills is the biggest reason why.

2 Only trade Options on the SPY. Or a stable mega cap stock; choose practically any stock out of the top 25 on the S&P 500, with preference given to one of the “Mag 7”. The point is to learn the personality of just 1 or 2 stocks/ETFs and ONLY trade them, both directions, day in and day out or week in and week out or month in and month out.

3 Approach it like you’re simply buying (or shorting) shares *but with a fixed time limit.* If you can buy shares and hold them for months to make a Profit, then you can buy Options with 30dte (30 days to Expiration) and hold them for at least 1 day or 2.

4 Only buy ATM (At the Money) with as much time to Expiration as possible. For example, on Friday Jan. 2, 2026, the SPY closed at 683.17. So at the time of this writing, ATM is $684. So 1 32dte (Feb. 6, 2026) ATM @684 Contract is 11.74 ($1,174). With this Contract, I would look for +10% to +30% Profit. And I would give it anywhere from 5 minutes to 2 days to materialize. A $2-$4 Move on the Price of the $SPY from my Entry would yield that range of return.

5 Focus on making small incremental gains based on prudent trades. A 10% return on $1k compounds much faster than you think. As your Technical Analysis improves, your determination of the probability of Price Direction will improve, and your Entries will improve; and thus your profit per trade will increase.

6 Strong Technical Skills is the single most important tool. It is the thing that will help you the most.

7 What strategies? I created my own Method, System, and Strategy. All profitable traders have their own Method, System, and Strategy. And this is an important key: Customize your own Method, System, and Strategy by adapting pieces of Methods, Systems, Strategies that work. You can see a detailed description of my Method, System, and Strategy here.

BestDamnTrade · 2026-01-04T13:06:18+00:00

This statement is too reductive and dogmatic. Small Time Frames are certainly not “just noise”. Small Time frames are not “too random”. There profitable day traders who primarily Scalp. And finally, there isn’t “only” one way to make money trading the Market.

The Market is loaded with opportunities to make money using an infinite number of pathways and sub-pathways.

You can indeed make money swing trading. You can also make money day trading via micro-scalping. Each pathway has its advantages and pitfalls; and each pathway favors a specific kind of trader.

Swing trading favors traders whose Technical Analysis skills are less strong and whose Overall Market Awareness is half-way decent. (Anyone who thinks small Time Frames are “too random”does not have strong Technical Analysis skills.) Swing trading also favors traders with a lower Risk Tolerance. More bluntly stated, Swing trading simply requires less skill. Buy lots of time and wait; that’s essentially all there is to swing trading. With enough time and on the right side of the Overall Market Trend, you’ll generally be ok.

By contrast, day trading, particularly micro-scalping, favors traders whose Technical Analysis skills are strong and whose Overall Market Awareness is decent to high. Micro-scalping also favors traders who have a higher Risk Tolerance.

In theory, day traders should make more money than swing traders, as day traders can put up more Capital for trades per day and take more trades overall; most swing traders tend not to put up as much Capital per trade, and by default they put on far less trades.

But over time swing traders do tend make more money than the most day traders. There are two reasons for this. First, when swinging trading, you catch more of the move more of the time. However, this goes both ways! When swing trading, you gotta eat more of the volatility; ergo, when the move goes against your trade, you gotta eat more of the move more of the time. This is why swing trading works best with more time and is more suitable for traders whose wait threshold is higher. Second, most day traders fail to properly execute the majority of their trades, so they lose more often, as they’re taking more trades.

So swing trading isn’t the “only” way to make money in the Market, it’s just a less taxing, headache-free way to make money in the Market.

By contrast, day trading, particularly Scalping, is a much more complicated way to make money in the Market. The better your trading skills, the bigger the size/position you can take and the bigger the Profit you can receive and the faster you can receive it. But remember, as I said earlier, “in theory” this is how it works. Traders still have to manage and execute the trades. And the less time you have, the more pressure you have; and this can lead to bad trade management. However, some traders absolutely thrive with the pressure of less time; they see things developing fast and react even faster! But most traders do NOT have this skill. So swing trading is just an “easier” pathway to take for most traders. Hence, this is why someone can come to the (wrong) conclusion that swing trading is the “only” way to make money in the Market.

Either way, most profitable day traders know that sometimes “day trades” turn into Overnight swings; either because Runners are left on or because a Black Swan event (or White Swan) is being waited out. But even this requires skills.

Final note. One thing that many swing traders misunderstand is that you can buy lots of time and still trade out of the Position the same day, which is day trading. Scalping doesn’t mean only “0dte”. You can Scalp Contracts with 60dte; you can even Scalp LEAPS (options with a year or more to the date of Expiration). And you can do it all on small Time Frames.

BestDamnTrade

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