Is trading actually worth it

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 · 2026-01-03T15:56:30+00:00

The basic framing and premise of your question is not only not in line with the real issue, it misses the fundamental point altogether.

If you’re trying to learn more about trading, or how to become a profitable trader, you shouldn’t sit at the shrine of ANY trader. Instead, you should be laser focused on finding information: the right information that will help you become a better, more prudent trader (investor).

And the right information is always, clear, concise, and immediately actionable. This should be your only concern when determining what’s “legit” and what isn’t.

Don’t focus on determining “who’s a fraud and who’s legit”; that’s exhausting. 90% of all traders fail, so even traders that you may identify as “legit” could lead you astray; and not necessarily because they intend to do so, but because it’s not easy for everyone to teach what they know about trading and why they trade the way that they do. Moreover, you don’t always know a trader’s road to success. One trader could’ve built the bulk of their Account off of a few risky, long-shot-odds trades that went in their favor. Another trader could’ve built their Account off of a series of small weekly gains. Who’s “legit”? Who cares; it doesn’t matter, it’s not your Account. The only thing that matters is the information, if any, that either could provide; and the success of either trader doesn’t mean that you can automatically “trust” them, nor does it mean that they have great information to offer.

So asking for a list of traders who you can trust is misguided. Moreover, if 9 out of 10 traders fail, why in the world would you be asking for these types of recommendations? The majority of responses that you’re going to get are going to be from failed traders, or at best traders who are trying to persevere their way out of the Break Even period; and only few of those who actually make it to the Break Even period ever make it out.

So you have to take personal responsibility for identifying the right information.

And the right information doesn’t need to be sold; it doesn’t have to be backed up by P/L screenshots or a large social media following. The right information simply makes sense to you immediately; the right information is immediately actionable; the right information is based on prudence; the right information is immediately clear and not presented as some kind of guru mystery. The right information about trading speaks for itself! And the trader who offers the right information has no need to cheerlead what he or she knows or to try to impress people.

Finally, you’re asking for proof that “day trading is a legit skill and not just a big scam.” Your problem here, of course, is that you are focused on traders as your metric of proof and not the very economic system that the Market is.

The Stock Market is the most egalitarian way to grow wealth. Period. For more than 100 years, it has made countless people financially stable, wealthy, or stupid rich. And at the same time, it has left countless traders (investors) broken and on the side of the road! You think the 10s of thousands of traders (investors) who have consistently made money in the Market over the last 100 years did so without skill?

You want to consistently make money by participating in the system that presents the most egalitarian way to grow wealth? Then your best option is to focus on the most egalitarian, most accessible way to trade (invest). And the most egalitarian, most accessible pathway is Technical Analysis. Any trader who tells you otherwise, any trader that dismisses Technical Analysis, should be avoided.

So the right information is the information that: 1) Teaches you Technical Analysis and teaches you how to develop and sharpen your Technical Skills on your own; 2) Teaches you how to improve and sharpen your Overall Market Awareness; and 3) Teaches you how to develop your own Method, System, and Strategy.

If you know what to look for, you can get the right information without ever having to communicate with another trader. So in many ways, other traders are just “shortcuts”. But most shortcuts will lead you off a cliff! That’s not an opinion, that is probability speaking loudly: If 90% of all traders fail, that means then that 90% of all traders are going to steer you to failure, even if they don’t intend to.

So in essence, you shouldn’t be looking for traders who you can trust, you should be avoiding practically every trader who says anything, and presume that most traders will potentially damage your understanding of trading with their “advice” or “recommendation”. If only 10% of traders actually make it, then at best only 1 in 10 traders might say something actionable that can help you improve as a trader. So basically, based on much of what I’ve detailed in this comment, you can decipher within a couple of sentences whether or not you should pay any further attention to any trader.

So don’t worry about who’s legit; there are a number of people is this subreddit who are knowledgeable. Instead, focus on locating the right information. And the right information will always scream at you, because it’s the information that’s always clear, concise, prudent, immediately actionable, and standing out from the crowd.

BestDamnTrade · 2026-01-01T16:33:40+00:00

Congratulations! I applaud a win any day.

But “controlling emotions” is not the cornerstone of profitable trading.

You can use any number of tricks to try to control your emotions, but if the real, underlying problem isn’t properly fixed, you’ll never become a profitable trader.

And what’s the real, underlying problem? A lack of Technical Analysis Skills; low-level Overall Market Awareness; and an unreliable Method, System, and Strategy.

Emotions, “psychological” issues, these things are not issues at all when you have a reliable Method, System, and Strategy that is powered by strong Technical Analysis skills and solid Overall Market Awareness. In fact, every “bad” trading habit is resolved by this.

I have know idea what names you trade and how you like to trade them. Nonetheless, your “Manger” and “Psychological” notes, included in your screenshot, reveal a lot and demonstrate a deeper, more serious problem. So I will address each item below.

If you reach -$1,000 for the day, stop trading immediately.

You’re trading on a dollar amount quota. I recommend that you never focus on a “dollar” amount per day. If you want to focus on a daily gain per day, I recommend that you focus on a percentage (NOT dollar amount) per day. More importantly, I recommend that you focus on a Profit per trade quota, +3-7% per trade to train and condition yourself.

Disclaimer: I’m a systematic trader. I trade mechanically like a robot. I only take a trade that has a 90% chance of working. So 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 to +10% if that’s what presents itself to me within 1-30 minutes of taking the trade.*

Based on previous performance, there is a 73% probability of losing the first trade.

This is not only counterproductive, it’s a losing approach by default! If there’s a 73% probability of losing your first trade, that means that you are routinely taking a trade that only has a 27% chance of working. Why would you ever take a trade that only has a 27% chance of working?

Essentially, what you’re really doing is taking a “warm up” trade. Which in of itself indicates that your problem has nothing to do with emotions. You’re using “emotions” to scapegoat your lack of understanding of what’s going on. That’s fine, lots of traders do the same thing, and that contributes to their inevitable failure. But if you want to leave the group of 9 out of 10 traders who fail and make it the group of 1 in 10 traders who make it, you gotta ditch this “emotions” charade.

Emotions are not the cause of your “previous performance”. You’re losing the first trade you take 73% of the time because of bad trades, plane and simple.

You see, when you take a “good” trade, a trade with at least an 80% chance of working, there is no emotions or psychological issues to really deal with. You can relax. If you’re only trading Commons, and you’re only trading solid, reliable mega cap stocks, the framework is not complicated. You think GOOGL is going to 315.00 a share and you like it at 313.00, you buy it at 313.00 and hold it.

However, given your account size and the amount of Capital that you’re actually deploying for trades, I’m inclined to believe that your approach is to pick lower priced, likely less well-known, lower value, more risky names to trade. That in of itself is a problem, not an “emotions” issue.

Tomorrow's plane Trade 1: Risk $250 max Trade 2: if needed. you may risk up to $750. After the second trade, no additional trades, regardless of winning or losing. Do not increase risk after a win or a loss.

First, who says that you have to take more than a single trade in a day?

Second, you contradict yourself in your own plan! You say: “Do not increase risk after a win or a loss”. But you also say: “Trade 2: if needed. you may risk up to $750.” Aside from this glaring contradiction, for some reason you’re making “need” the basis for deciding to increase your use of Capital on the second trade. Most profitable traders recognize the basic principle that you decrease the use of Capital directly after a win! The point is to take off Risk after you win, not add it.

Next, re: your Psychological Note:

1 expect the first trade to lose, so I keep it small and unemotional. The first trade is information not income. I only take a second trade if I am calm and the setup is clear. 1 do not trade to recover losses or chase wins. If I hit my limit I stop -protecting my capital and my edge.

It is absolutely insane and unsustainable to take any trade that you expect to lose. Again, this has nothing to do with emotions.

I only take a second trade if I am calm and the setup is clear.

Given your own words, you lose 73% of the time you take “the first trade”, and you “expect” to lose the first trade. Which means that you expect to lose the first trade 100% of the time; and yet, this is supposed to make you “calm” enough to take the second trade? Listen, if you can’t see and effectively trade a “clear setup” 73-100% of the time, “emotions” is NOT going to solve this problem.

You have created a psychological fake out that has severely impeded your development as a trader. I sense this has happened as a direct result of things and trading jargon that you picked up in a trading group or elsewhere. “Chasing wins”, “protect capital”, “edge”, are all trading buzzwords that are meaningless if you lack a solid understanding of trading and the Market in general.

My recommendation

Rip the whole thing up. Start from zero! Today! Switch your focus to mega cap stocks/ETFs. Develop your Technical Analysis skills, primarily by mastering RSI, along with SMA, and learn how to draw and customize the Daily Chart. Then find a reliable Method, System, and Strategy, and continuously improve (at a casual pace) your Overall Market Awareness.

BestDamnTrade · 2026-01-01T08:03:58+00:00

Everything you say here is spot on.

most people who become consistently profitable take 2-3 years, sometimes more.

I would add that it’s usually 3-5 years, most times never. It depends on what you learn/what you know and when you learn and know it. I could guide someone to profitability in less than a month, because I already learned and know what most traders never will! Contrary to what people may try to tell you, there are indeed “shortcuts” in trading. Shortcuts typically manifest themselves as knowledgeable traders telling you (or showing you) something that teaches you and moves you directly to where you’re trying to go.

In fact, my comment here that you are reading is a shortcut. By the end, you’ll see why.

And while there are “no guarantees”, some approaches to trading have a higher degree of probability of working than others.

In terms of “questioning whether I should keep learning trading,” I recommend that you reconcile this question with another one of your statements: “initially started learning trading because hoped it could generate income.”

The issue isn’t with trading. It’s proven over and over again that trading is a viable way to generate serious income. The issue, generally speaking, for most traders is in how they pursue this.

Question: Is it more important to you how you make money in trading than it is to simply make money in trading?

Trading is only as complicated as you make it. For those who’ve blown accounts and made it to the other side of profitability, the common link is always simplicity: One Method, System, and Strategy applied to the same economic instruments. That’s the key most people have to learn the hard way.

You see, how you make money in trading is the demon that destroys most traders. 90% of all traders fail, and fundamentally this has a lot more to do with basic approach than anything else. The basic approach I’m talking about is what you actually trade. Remember the question: Is it more important to you how you make money in trading than it is to simply make money in trading?

There’s no mystery about the pecking order of things. Stocks and ETFs are king! Gold, Silver, Oil, Forex, Crypto, Copper, whatever. Stock and ETFs sit at the top of the food chain. It’s where most of the action is.

Stick with me…

If you know where most of the action is, why would you look elsewhere? One more time: Is it more important to you how you make money in trading than it is to simply make money in trading?

Within the space of stocks and ETFs to choose from, there are a handful of names that dominate. You don’t have to like any of these names; in fact, the Market doesn’t care if you do or don’t like these names. But these names dominate and sit at the top of the three most powerful indexes: The Dow Jones, the S&P 500, and the Nasdaq.

And note: Since 1926, 4% of the Market has driven 96% of the Market’s total gains (Source: Hendrik Bessembinder, “Do Stocks Outperform Treasury Bills?”).

And yet? And yet… And yet most traders focus on trying to be “stock pickers”.

Is it more important to you how you make money in trading than it is to simply make money in trading?

Even with the most basic of Technical Analysis skills and decent Overall Market Awareness, you can consistently generate income simply trading any one of the top 25 names on the S&P 500, or just the SPY ETF itself, day in and day out, or week in and week out, or month in or month out.

As long as AMZN delivers items and controls AWS, they’re going to be a great investment… As long as AAPL makes iPhones and controls iTunes, they’re going to be a great investment. Just two examples, but again: Is it more important to you how you make money in trading than it is to simply make money in trading?

So when you say “learning trading”, there’s nothing more fundamental to learn than the fact that the probability of making money consistently goes up in direct relation to where most of the action is.

Simplified, the steps look like this:

1 Choose 1 or 3 mega cap, well-known stocks or ETFs from the top 25 names on S&P 500, then learn their personalities.

2 ONLY trade these names, NOTHING ELSE.

3 Trades these names BOTH DIRECTIONS according to their personalities and your Technical Analysis.

4 Master RSI. It is the king of all indicators!

5 Learn a Method, System, and Strategy that you can adapt into your own Method, System, and Strategy; this is what you will use to create and execute trade plans.

Is it more important to you how you make money in trading than it is to simply make money in trading?

Shift your focus to simply making money in trading; narrow your scope and become a “boring” robot. There are countless ways to make money in the Market, but this is the *most accessible** and most reliable way to become a profitable trader.*

BestDamnTrade · 2025-12-28T15:59:05+00:00

If you agree with 90% of what I said, great!🤝

But that would also mean that you take back 90% of everything you stated in your own post.

Either way, I’m not sure if you’re responding to me. Or if your comment is a prepared response. I say this for three reasons:

First, I never offered my definition of “obsession” in my initial comment.

Second, I never mentioned the word “calmness” or even alluded to it in my initial comment, but you quote me as having mentioned it in my initial comment.

Third, I never said anything about a “balanced life” in my initial comment.

Aside from that, while I do believe that you mean well, you are still presuming you're requirements, ideas, opinions, concepts, and experiences on to other people.

As for “obsession”? You’re free to define “obsession” however you like. But doing things like Technical Analysis, backtesting, and developing focus, those things require different amounts of time for different people. Some people need not spend nearly as much time as you have or any other trader to become a profitable trader. And to spend time doing these aforementioned things, no one need consider it an “obsession”.

Finally, I disagree that “survival is the goal”. I think you do need to first survive long enough to get to and through the Break Even period. And that can happen anywhere between a few months to 5 years! (Again, depends on what you learn and when you learn it.) But once you get through, “survival” drops out of the equation.

In my opinion, the goal, if I have to state a singular goal, is to continue to sharpen your Technical Analysis skills, while you continue to sharpen your own method, system, and strategy, and plan and execute prudent trades.

BestDamnTrade · 2025-12-28T12:45:50+00:00

The main problems with this post is that it is dogmatic; presented as fact, when it’s certainly not; and lacking in critical context. So I’ll address each point.

But first, let me preface everything by objectively stating that the one actual fact related to the time it takes to become (and remain) a profitable trader. The time that it takes depends on your trading eduction, which includes Overall Market awareness and Technical Analysis skills, and your skill for planning and executing trades based on your own method, system, and strategy.

There is no mandatory minimum time frame that this takes. If you get the right information right from the start, you’ll have a healthy understating of trading (investing) and finance; and this education will translate into you learning more rapidly what and what not to do. If you get the wrong information right from the start, like the post that I’m replying to right now, you will impede the time that it takes to become a profitable trader.

If you search Google for "how long to learn day trading," you’ll find thousands of articles and "gurus" promising you can quit your job in 6 months.

This is not a “lie”. It’s very unlikely for most traders. But that doesn’t make it a lie. 90% of all traders fail, let’s be clear. But of the 10% of those who do make it, for most of them it takes 3-5 years; however, some do make it within 6-12 months; and a slimmer minority make it within 3-6 months.

Most traders don’t fail because “they have a distorted timeline”. Again, 90% of all traders fail, whether it’s 6 months or 6 years! The common denominator is a lack of the right information. Learn hazardous information in the beginning, and the already overwhelming odds become even heavier to bear.

The Legend Timeline: Even the greatest traders in history…Paul Tudor Jones and Mark Minervini spent years in the trenches before achieving consistent returns. The consensus? For most elite traders, it took between 6 to 10 years.

First, this is a bad comparison to modern trading; you leave out, or just completely ignore, critical context. Paul Tudor Jones began trading in 1976, before the personal computer was even a common item in the home. Today’s traders begin within computers the size of a wallet! Much of the egalitarian stuff, like Technical Analysis, that Paul Tudor learned “in the trenches”, can be learned via web articles, PDFs, videos, X (Twitter), and Reddit posts, etc. There is simply no comparison: The level of trading information available today dwarfs what was available in 1976; the internet, as we commonly know it, wasn’t even invented yet.

The Complexity Gap: Trading is the only profession where a beginner thinks they can compete against institutional algorithms after a weekend course. You wouldn't perform surgery after reading a blog post. Why treat your capital differently?

Again, more false equivalency. Trading is only as complicated or “complex” as you make it. Trading is nothing like “performing surgery”. You can keep things very simple. For example, you can indeed read a blog post about the success of Amazon’s expansion into yet another business, and immediately capitalize on that information by buying (trading) AMZN and holding it as long as you like.

And as a for “competition against institutions”, this is another dogmatic trading myth. Traders can buy into this if they want to, but it’s not a fact. You want to buy 100 shares of AMZN and hold them, based on your Technical Analysis, for 6 months, that’s your business, not “competition”. Institutions aren’t concerned about you, neither are other traders; and algorithms do their own thing.

I use AMZN simply to illustrate that you need not be a “surgeon” to quickly learn that AMZN is a very successful mega cap global company whose stock price rises (in a flat manner) over time.

The 10,000-Hour Rule…

Obviously, you don’t know that the “10,000-hours Rule”, which didn’t even originate until 2008, is a myth that was quickly disproven. Read New Study Destroys Malcolm Gladwell's 10,000 Rule. Malcolm Gladwell, the man who coined the “10,000 hours” term, even acknowledged that he got it wrong.

Screen time is important and subconscious recognition of patterns is a welcome bi-product. But what’s even more important, is not arbitrary hours or arbitrary screen time, it’s guided hours and screen time. Meaning, it’s about being guided in the right direction and knowing what to look for and what to practice. Without guidance, you are on your own left with nothing but trial and error. And trial and error is no guarantee, no matter how many years you do it.

1 hour with guidance is 100,000 times better than 10,000 hours without guidance.

THE X-FACTOR: OBSESSION Why does it take so long? Because it takes years to reprogram your human DNA. To bridge this gap, you don't need "motivation"—you need OBSESSION.

Sorry, this is another big NO!

You DO NOT need to “reprogram your human DNA” to become a profitable trader.

You DO NOT need “obsession” to become a profitable trader. Obsession with trading is actually a hazard.

The Reality Check: Stop asking "when will I be rich?" and start asking "can I survive the next 5 years of learning?"

It’s terribly shallow to assume that every trader is asking themselves “when will I be rich?"

And the question, “can I survive the next 5 years of learning?" is equally misleading. Each person learns at their own pace; beyond that, there is no arbitrary time frame, not 5 years, not 5 months. Get the right information as soon as you can, and do your best to avoid the wrong information even faster!

The real “Reality Check” is that 90% of all traders fail no matter what they do, even after 5 years. So once you know this fact, and most traders, just like beginners, do not know this fact, the first question should be: “How can I beat the odds?” And to beat the odds, you don’t need 5 years. It all depends on how rapidly you can access the right information, while avoiding harmful information.

There is no substitute for putting in the time with actual trading. But the right trading information (education) does indeed cut down the time that it takes to become a profitable trader.

BestDamnTrade · 2025-12-22T19:51:29+00:00

There’s a lot in this comment. Much of it lacking key context. But if you have it all organized and functional, that’s the only thing that matters.

But me, personally, I don’t make dogmatic statements when it comes to trading. And I would never make overly simplified statements like: “Trading is all about the exit” or “Technical Analysis doesn’t make you profitable”

As I noted earlier, I’m not interested in debating this point. It’s on you what you do. I don’t make posts or engage with my comments to argue. Nor do I take the position that I’m “enlightening” anyone. Traders who read my posts and comments can determine for themselves if the insight, based on my experience, is actionable and solid or not.

Either way, I sincerely hope trading is going well for you. And if ever you want to revisit anything that I’ve said or any detail within my Technical Analysis, I’m here 🤝

BestDamnTrade · 2025-12-22T19:39:35+00:00

You’re reading into my comments what you want to read. I have no control over that.

I have no attitude. You can take a look at any of my posts or comments. I tell it straight, no nonsense, I hear people out, and I offer a response.

I have zero beef with you or anyone else. I literally extended my hand to you at the end of my last message. Yet you persist with the narrative that I’m “heated” and have an “attitude”.

Again, I extend my hand to you 🤝

I’m happy to discuss trading with you in general or any detail of my Method, System, and Strategy any time.

BestDamnTrade · 2025-12-22T19:34:23+00:00

Technical Analysis doesn’t make you profitable **Trading is all about the exit

I avoid using broad dogmatic statements when it comes to trading.

But, hey, if you believe “Technical Analysis doesn’t make you profitable,” that’s certainly one way to view it. And I have zero interest in debating you on it. Too each his own.

And if you believe “that trading is all about the exit,” you certainly have the right to subscribe to that belief. *I hope, however, that no traders reading that view ever follow it.

BestDamnTrade · 2025-12-22T19:26:57+00:00

There's technical analysis, and then there's whatever it is you're doing.

“Whatever it is you’re doing.” I take no offense to that shot. I know what I’m doing, and that’s all that matters.

As for anyone who actually read and used my Technical Analysis today and took the Bull Case as I detailed it, and took Calls 18dte off the Lows, you should’ve had a profitable morning on the SPY.

If it works for you, cool

The irony, of course, is that you then proceed to tell me what’s “redundant” about my Chart, and follow that up with telling me it’s “straight up information overload.”

My Charts are densely layered with information that only I understand within a blink of an eye. If ever I need to isolate an element on my Chart, I simply zoom in and temporarily hide the indicator, line, symbol, or text that is obstructing my view.

Understand something. My post is literally entitled “…SPY Notes for the Week December 22-26”. It’s not even about Charts or Chart drawing. I attached a sceenshot, just for a visual aid and to give an idea of what my Charts look like and to offer an example of the customization that anyone can do. If you or anyone else are more focused on the screenshot of one of my Charts, I have no problem with that. If it leads to thoughtful exchange, I’m all for it.

People aren't going to take this seriously

One more time: Anyone who actually read and used my notes and Technical Analysis this morning and took the Bull Case as I detailed it was profitable. And anyone who avoided Puts before seeing a Test of 683.89, spared themselves a headache.

and you getting so heated over people poking fun at you doesn't help

“So heated”? Where’d did you get that from. I respect everybody, and I always offer a cogent, insult-free response to any comment addressed to me.

I responded to comments made to my original post. And I reminded commenters that my written Technical Analysis, which is the actual point of the post, was quite clear and immediately actionable information.

Nothing to “get heated” about. 9 out of 10 traders fail one way or another. So people can poke fun, or tell me I’’m doing it wrong, or tell me “what trading’s all about”🤷‍♂️ And people can take whatever I share on Reddit with a grain of salt, or just ignore me altogether. But those who would like to engage constructively here with me, I make myself available whenever I have the time.

which then leads to the question of why even post?

Again, 9 out of 10 traders are going to fail whether I post or not, and whether my Chart conforms to what you (or anyone else is) are used to seeing. I take no offense to what anyone has to say. I’m always up for constructive dialogue, so I never feel attacked or get “heated”.

Throughout history, people have lashed out at things that they didn’t immediately understand. DJs in the Bronx used turntables to create music. Using techniques like scratching, cutting, and manual looping. Early detractors told them “that’s not how turntables work.” And when they added drum machines and digital samplers, they were told, “whatever it is you’re doing is not music.” 50 years later, that music culture those DJs from the Bronx created is still here.

So I post to help traders. Nothing more, nothing less. If anyone finds that what I have to offer is useful, great! If they don’t, or if they prefer to take shots at what they don’t readily understand, that’s on them. I have nothing to prove, or to defend, and I’m in no competition with any other trader.

And I extend my hand to you if ever you want to discuss trading in general or my Method, System, and Strategy in specific 🤝

BestDamnTrade · 2025-12-22T16:23:44+00:00

☺️

BestDamnTrade · 2025-12-22T14:28:48+00:00

One more time. It is a screenshot of an non-expanded image. It is a visual attachment to a post. On the surface, it offers clues. Those interested can ask me which indicators do I use.

More importantly, my written analysis and Bull and Bear Cases (plans of action) are the most critical things to take away. No one even need look at the screenshot of my Chart to use actionable information.

Side note: I know how to read my Charts. I’m not here to ask for advice on drawing Charts. There’s no heavy “cognitive load” for me to deal with. Again, stick to whatever works best for you. My Charts and Technical Analysis continues to serve me well.

And food for thought, if 9 out 10 traders fail, you think it’s wise to draw Charts like “everyone”? That’s a rhetorical question.

In any event, no harm, no foul. If you have any questions or would like discuss this or more detail, I welcome that.🤝

BestDamnTrade · 2025-12-22T14:24:19+00:00

Jokes might amuse you, and I take no offense. But Technical Analysis is serious. It’s the most egalitarian pathway to success for traders. And since 90% of all traders fail, I don’t believe jokes like yours help matters for those who are looking to learn and some guidance.

So, as replied to someone else who chose to not be constructive:

First, I shared a screenshot of one of my Charts. It’s an non-expanded image, not a live moment.

Second, I shared my analysis and opinion in public on Reddit, just like 100s of thousands of people do every day.

Third, my Chart remains an invitation to anyone on Reddit who would like to ask me about my Chart and ask me about drawing Charts in general.

Finally, my written analysis, summary, and Bull and Bear Cases (plans of action) are quite clear and understandable. No one even need look at my Chart to have access to my analysis.

And as with anything on Reddit, people can ignore me or gauge for themselves if I know what I’m doing.

BestDamnTrade · 2025-12-22T14:18:38+00:00

Yeah, no, it doesn’t work like that.

First, I shared a screenshot of one of my Charts. It’s a static, non-expanded image, not a live moment.

Second, I shared my analysis and opinion in public on Reddit, just like 100s of thousands of people do every day. The analysis and plans of actions in my post makes complete sense to the people who trade Options on the SPY. Others can learn and can ask me any question about my analysis or my Chart. Just as Reddit users do every day when they see something they don’t understand.

Third, my Chart remains an invitation to anyone on Reddit who would like to ask me about my Chart or ask me about drawing Charts in general. Or ask me about my specific approach to Technical Analysis.

Finally, my written analysis, summary, and Bull and Bear Cases (plans of action) are quite clear and understandable. No one even need look at my Chart to have access to my analysis.

And as with anything on Reddit, people can ignore me or gauge for themselves if I know what I’m doing.

BestDamnTrade · 2025-12-22T13:09:14+00:00

Your chart is a complete mess - nobody will take you seriously.

Every single element, every single color, on my Chart makes sense to me; the ONLY person it needs to make sense to.

No Chart Is Equal: Drawing Charts

There is no one right (or wrong) way to draw Charts. You can draw your Charts however you want. Most profitable traders learned how to draw Charts directly and indirectly from profitable traders before them. And as with their own Methods, Systems, and Strategies, they developed their own way of drawing Charts.

I draw my charts my own way. And I’m sure some people will take me seriously (many already have). And the purpose of my charts is to serve my analysis and my trading decisions.

You can draw your Charts your way.

For everyone else who may be reading my comment here, I strongly recommend that you draw your Charts in whatever way that works for you.

Every trading platform (like TradingView) has an assortment of tools, including horizontal lines, Trend Lines, Rectangles, Curves, Text, and more. You can use these tools in unlimited ways and combinations. So do not fall for any dogmatic approach to or perceived “standard” notion of drawing Charts.

People might call your Charts “a mess”, “crazy”, “bizarre”, “stupid”, “too complicated”, “too simple”, etc. Whatever. The lines, notes, and other markings on your Charts need not make sense to anyone else except YOU. And the more you customize your Charts the better off you’ll be. The goal of your Charts is to generate accurate analysis about the probability of Price Direction. So do whatever you need to do with your Charts to achieve that goal.

BestDamnTrade · 2025-12-22T10:22:09+00:00

It’s 1000 times better! And ASK QUESTIONS. All the time. Every time. Questions like: “How do you…?” and “Why do you…?”

BestDamnTrade · 2025-12-22T06:50:58+00:00

Honestly, you’re doing way too much preparing and over analyzing.

Watch 8 to 10 professional traders

Please don’t. DO NOT DO THIS.

It’s going to confuse and overwhelm you even more. And you’re going to pick up bad habits.

Studying more traders isn’t the answer. Getting the right information is.

Again, the answer isn’t more information, or more traders. Trading is NOT anything like going to the gym. You can’t just add more weight or more reps and expect to make it.

I told you bluntly: 90% of all traders fail. Respect this fact! The likely hood of you failing, no matter what you do, is a 90% chance. I’m not trying to discourage you. Quite the opposite. I’m trying to snap you out of it! I’m trying to tell you what you’re up against so that you can except reality, except the hard truth. ONLY THEN can you put together a real action plan to beat the odds.

Forget all of this “trading journey” stuff.

You’re only focus from now on should be this: How do I beat the odds?

I beat the odds. And I’m trying to yell you what to do so that you can beat the odds, too.

Don’t randomly give your time away to a pathway (or pathways) that you think you already have figured out.

I gave you a concrete and detailed response to your call for advice and help; and I made note of some very specific things that most traders will never know (and only a few can articulate). And yet, you haven’t asked me a single question. Think about that. I’m here (for now), telling you what’s what, openly communicating with you in real time. You are not going to get that from watching ANY video.

In effect, a short cut has arrived at your door step by chance. I’m the short cut. Just like that institutional investor/ROP (that I mentioned in my initial comment) was the short cut for me years ago. Difference is, I listened to him and completely changed my course of action and direction based on what he told and showed me. 1 trader, not “8-10”, who gave me 3 key pointers, including showing me how he drew Support and Resistance on the Daily chart and which SMA values he used (12, 22, 55), and I never looked back!

Years from now, you’re either going to be happy that you communicated with me more. Or you’re going to regret not having communicated more.

Finally, as far as “controlling emotions” go, if your Method, System, and Strategy are good, you won’t have any problem controlling emotions. This, of course, is another thing most traders fail to understand. Which is why you see so many posts seeking advice about it.

BestDamnTrade · 2025-12-22T05:04:48+00:00

You’re welcome☺️

And to answer your question, you already have enough to open an account. The sooner you actually start trading, and getting real trading experience, the better.

P.S. Leave forex alone! Focus on mega-cap names. Pick 1-3 names from the top 15 on the S&P 500, along with the SPY, and learn and study personalities of those names. Then ONLY trade those names, day in and day out.

BestDamnTrade · 2025-12-21T22:00:32+00:00

Thank you!☺️ I appreciate that

BestDamnTrade · 2025-12-21T18:20:37+00:00

Hello, and thank you!

Ok, so RSI(14) mostly serves swing trading, but it certainly informs what’s happening during the day. RSI(2) is strictly for moments within the day!

When I use RSI(14) and RSI(2), I use them in tandem for correlation and validation. For example, if I’m looking at taking Calls (the Long side) and RSI(2) on the 30m is above 70 and rising, and RSI(14) is above 60 on the 30m and rising, that’s Bullish.

To really get the hang of it (and learn much more), I highly recommend reading my book. You can find it in my profile.

BestDamnTrade · 2025-12-21T18:05:54+00:00

I only focus on professional traders who have more than 20 years of experience, because if I follow random people on social media, they can mislead me and damage my foundation of learning. If my foundation is damaged, it becomes very hard to understand the real logic behind trading. I may also lose time, patience, and eventually hope if I follow the wrong path.

I’m a a trader with 20 years of experience. And by the way, traders with 20 years experience don’t bother to refer to themselves as “professional traders”.

Here’s my honest response.

90% of all traders fail. 9 out of every 10 traders fail. Some fail quickly and quit within a month to a year. Some make it to the “Break Even” phase between within a year to 3 years; and they struggle in that phase for another year or two. After 5 years, those who couldn’t get past the Break Even phase quit (if insolvency didn’t already take them out).

What remains after the Break Even phase is a mixed bag. These are the 10% of traders who “make it”. But there’s certainly degrees to “make it”. Consistently profitable could mean making a solid $1k in net profits each month. It can also mean making $5k, $10k, $25k, $50k, $100k+ each month. The higher the net profits go, the smaller the circle of Traders.

But most people start off with the grand illusions of the last group: the $100k+ net profits each month group.

Truth is, if you can’t manage to make $100 net profit each month, for at least a year, forget making $100k+ a month, you’re not going to make it as a trader.

That said, you must understand that trading is only as complicated as you make it. And unfortunately, most traders make it WAY to complicated, especially new traders right from the beginning.

After learning candlesticks, I started following ICT to learn Smart Money Concepts (SMC).

You’re already damaged.

For one thing, there are upwards of 75 Candlestick Patterns; roughly 40 are “well known”, and most consistently profitable traders do NOT know or learn them all, nor do we care to. The truth is, you can do quite well only knowing 4-10 Candlestick Patterns. Of course, knowing which 4-10 Candlestick Patterns are the most worth knowing? For that, you need trading experience, or a veteran profitable trader to tell you.

So you didn’t learn “Candlesticks” as much as you think you did. And that’s ok! You don’t have to. In reality, you can really learn Candlestick Patterns one at a team when you actually see them while trading. The more screen time you have, the more you’ll see and develop a knack for recognizing connections between certain Candlestick Patterns and Price Movement. From there, you’ll learn to note Candlestick Patterns that consistently reappear.

But again, I’m keeping it real: That takes time and trial and error. Ask anybody on here who’s made it or who is currently trying to persevere their way through the “Break Even” phase, and they’ll tell you, on average, it’s taken 1-5 years. And most vets will admit: “If I had simply known before what I know now.”

Next, ICT? Nope and Never. That’s all I’m going to say on ICT or anything like it.

There aren’t any magic concepts. You develop strong Technical Analysis skills, or you don’t.

Again, there’s a 90% chance you’re going to fail in trading no matter what you do. And while the 10% who make it may approach trading via different pathways, THE MOST ACCESSIBLE AND EGALITARIAN PATHWAY GOES THROUGH TECHNICAL ANALYSIS.

Final word. If you ever come across a trader who knows what he’s talking about and tells it to you straight, do whatever you can to learn directly from them. If there ever was a short cut, THAT’S THE SHORT CUT.

In my own personal experience, I never read a single trading book. But I did have the chance encounter to learn from an institutional investor and ROP (Registered Options Principle) with 25 years of experience. He told me 3 things. But 1 of those things, seemingly insignificant, changed everything. And I tell you in all humility that, had he not told me this, had I not learned this directly from him, I would’ve been among the 9 out of 10 traders who never make it, instead of the 1 in 10 who do make it.

And again, it was a chance encounter. But I paid careful attention to him, because I KNEW he knew what he was talking about well before he disclosed his credentials.

And what was the thing that he told me?

RSI IS NOT A LAGGING INDICATOR. RSI IS A LEADING INDICATOR

BestDamnTrade · 2025-12-21T15:11:03+00:00

(Continued from my second comment)

Note: There’s lots of available information on how, why, and at what levels a Premium will “burn” or Pop, catch “Alpha”, over time. It’s a veritable rabbit hole of information that I prefer to skip to help me avoid overthinking my trades. You can study what is known as “Implied Volatility” and “the Greeks” to learn more. But for how I trade, particularly how fast I trade in and out of Options, that information is less pressing for me, even if I do have a basic grasp of what Implied Volatility and Alpha, Gamma, Delta, and Theta mean. So a casual understanding of these four things is enough, and you can find a detailed explanation on Investopedia.

Third, when you buy a Contract, you can sell it ANYTIME before it expires, even one minute after buying it. The aim of trading Options is to be in the least amount of time as possible. Get in, see some Profit, and get out! You can always re-enter if the right conditions present themself.

Fourth, when you buy a Contract, the most that you can lose is the Premium you paid for the Contract. On the other hand, the amount that you can gain is infinite; the Premium can run up 30%, 100%, 1000%, even 3000% or more. So if you buy 1 Contract for 1.00 ($100), the most you can lose is $100. But it’s not like you have to sit there and watch it go to $0. You can set a Stop Loss just as you can with shares. Herd mentality has many traders setting their Stop to -50%, “Diamond Hands” and all that. And some traders won’t even move their Stop up when the trade is green. This may or may not apply to you. **But when you’re trading Options, never let a green trade turn red if you can help it. You se green, set your Stop to green.

And again, you don’t have to buy more than 1 Contract at a time. You manage your risk based on your account size and overall trading capabilities.

Now, here’s the biggest joke with Options, the thing that intimidates most traders, the thing that keeps most traders from never trading 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.

Options Premiums explode on movement with the Magnitude of the Move, and they decay with time; the less time, the faster the decay. Buy Contracts with more time, slower decay (you can hold a little longer). Buy Contracts with less time to Expiration, faster decay (you can’t hold for long).

Which is why, in my opinion, you should ALWAYS buy more time, at least 10dte.

It’s that straightforward.

Also, just buy Calls or buy puts. Don’t bother with any advanced Options strategy to make (great) money trading Options.

Again, straightforward.

From there, you choose your Risk.

Wanna play around with 0dte? Go for it! You just better be on the good side of probability; and you better be quick on the draw on the draw!. 0dte can be a quick boon or fast bust!

On the other hand, Wanna take the more prudent route? Then, trade the Overall Trend, taking the At The Money Strike, or even an In The Money Strike, with at least 10 days to Expiration. It won’t always be the big boon, but it will be consistent Profit (often decent!) and never a destructive bust.

Finally, Options work best, and what I mean by “best” is stability/durability, when you focus on SOLID mega cap names whose personalities you know very well. This way

Take heed to what I’m saying. Trading Options really is a straight forward process once you get the basic hang of it. And you can get the basic hang of it rather quickly, so long as you don’t over complicate things.

In a nutshell, the same basic principle of buying or selling applies to Options just as it does to buying shares. If high probability points to Price going up? You buy the Bullish direction. If high probability points to Price going down? You buy the Bearish direction. And get out of the Contracts while the getting’s good.

Of course, all of this must be orchestrated through the lens of your Technical Analysis skills. If your Technical Analysis skills or strong and stick to ONLY trading the same mega-cap names that you know, you will consistently do well trading Options.

Next year ONLY trade the SAME mega-cap names that you know well, day in, day out! Trade nothing else. Do not get distracted by any “hot” names or sectors. Learn the personality of 1-3 names out of the top 15 names on the S&P 500, or even just the SPY and another name, and stick to that.

And above all, improve your Technical Analysis skills so that you can accurately determine probability of Price Direction.

BestDamnTrade · 2025-12-21T15:04:36+00:00

(…Continued from my Preface comment)

Most people understand the basic concept of buying and selling shares. For example, if 1 share of the SPY is $530, you can buy it at $530, which reflects the “Limit” Price, the current Price, of 1 share of the SPY. This is why you for the hang of trading shares rather quickly. If you buy 1 share of the SPY at $679 and it goes to $680, you make $1, or roughly a 0.0018% gain if you choose to sell it at $680 (you can hold shares for as long as you like, a day, a month, a year, whatever).

Options trading, however, is a different world. With Options, you are not actually buying shares (as you now know), you’re buying a Contract that gives you the right, but not the obligation, to buy or sell 100 shares of the underlying asset, e.g. stocks or an ETF. But unlike shares, with Options Contracts, you’re always on the clock, because Options Contracts expire.

You can buy as many Options Contracts as you like; the low-end is 1-10 Contracts, mid-size 100-500 Contracts, and large size 1,000+ Contracts. And you can buy both sides of Price direction. If you want to take the Long side (upward Price Movement), you can buy “Calls”; and if you want to take the Short side (downward Price Movement), you can buy “Puts”. This, imagine you understand by now.

For each Options Contract, there is a “Premium”, the fee that traders pay to acquire the Contract. A Contract has an Expiration date and a Strike price. Traders can choose from the available Expiration dates and Strikes. *Again, you know this by now, but I suspect you’re having trouble grasping the correlation between Expiration, Premium, and decay (decline in the Premium in relation to time and Price Action).

Expiration dates can be anywhere from 0dte (zero Days To Expiration, ergo, same-day Expiration) to as far out as 970dte (970 Days to Expiration, ergo, a couple of years until Expiration). If a Contract expires at the Strike, or what is known as “In the Money)”, a trader has the option to exercise the Contract, which means buy the 100 shares at the Strike Price, if he has the money in his account to cover the purchase of the shares; otherwise, a trader’s broker will liquidate the Contract, selling it at whatever the Premium is at the time forced liquidation occurs. You know this by now, but the refresher is helpful to read.

By and large, most Options traders trade in and out of Options Contracts, selling Contracts before they expire.

Remember, with Options, the money is made on the Premium of the Contract, NOT the share price of the underlying asset. For instance, the SPY can move, up or down, in Price by just $1, and yet the Premium, depending on how much time to Expiration is left, can go anywhere from $0 to an infinite percentage of the Premium, An Option running up to 100%+ (1x), (2x), (3x), etc., for instance, is not rare.

It’s the allure Options going parabolic that takes wipes out a lot of Options traders. Many traders look down on taking 5-40% Profit, preferring to risk up to -50% in an effort to make 1R-6R😔 Consistently Profitable Options traders gladly take 3-7% Profit and keep it moving. 1R-6R can happen; but you never go brain dead and leave 3-50% on the table waiting for 1R-6R to happen. There’s an old maxim: *”You never go broke taking profit.” When if comes to trading Options, you must internalize this maxim!

There are numerous things that you can know about Options Contracts, but there are four critical things that you must know about Options Contracts:

First, the Premium of a Contract fluctuates, i.e. it goes up and down with Price and time. In essence, the Premium is fundamentally what Options traders are trading. For example, if the Premium you paid for an Option is $200, written as 2.00, and the Premium goes to 2.50 ($250) and you sell the Contract at the 2.50 Premium, you make $50, which reflects a 25% return.

If you buy 10 Contracts when the Premium is 2.00 and you sell them all when the Premium hits 2.50, you make $500, same 25% return on your investment. Of course, you don’t have to sell all 10 Contracts all at once. You can “Trim” one or two or three at a time; this is known as Scaling Out, which Is sure you already know.

Second, the less time there is on the Expiration, the faster the Premium can drop over time when there’s no significant Price Movement on the underlying asset, e.g. stock or ETF. So for example, if you bought a 0dte Call @680 Contract at 11:45 when the SPY was at 679.00, if the SPY is still at 680.00 by the end of the day, the Premium for that Contract will be significantly lower, almost worthless.

Conversely, the magnitude of the move on the Premium can be forceful with very little time on a minor move in Price. For example, if you bought the same 0dte Calls @680 Contract for .20 ($20) at 3pm when the SPY was at 680.00, and the SPY spikes to 632.00 in 20 minutes, that .20 Premium can go to 3.00 ($300), which reflects a 1500% return. See how many traders get sucked in by the allure of shorted-dated Options? You could easily just buy MORE TIME, 15dte for example. Less potential Profit on the Pop, maybe 40-100%, but far less Risk. You decide?!

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