Hi all, took a break from the market for 2-3 years, traded a lot of crypto (was good at it) compared to options which eventually made me pause at trading for a minute.
New year and trying to see how much of my frontal lobe has grown and how much discipline and maturity I need to flip $300 into thousands. I would appreciate detailed and extensive strategies, technical, fundamentals and physiological. Thank you!
Starting options with $300 small account
byu/No_Cardiologist_8393 inoptions
Posted by No_Cardiologist_8393
5 Comments
If you’re already good at trading perpetual futures than I would almost just stick to that it’s damn near the same thing except perps don’t have Greeks to kill your position.
Dont buy contracts with less than 3 months duration. Best advice i can give to help prevent you from gambling. If it isn’t boring its probably gambling.
Sorry but I’m going to give you a harsh reality check. What have you done to prepare for trading again. Have you studied to improve you understanding of economics and market mechanic? Have you practiced paper trading to see if you analysis has consistently improved for let’s say over the course of a year and are you positive from that?
I say that because if you’re what you’re asking for is like true beginner stuff. Like good to know but not nearly enough to become successful enough to flip $300 to thousands
You’re a true beginner and 99% of user on these Reddit pages are. I’m not saying that to bash you, not my goal, but to try and open your eyes to how much you are missing. So then you can see how much is out there and start trying to understand that which you don’t to better complete your game. Technical analysis is cool, I use it, but for risk management more than anything else. It’s not predictive in anyway. Technical Analysis of the Financial Markets is a great read and then practicing it. There is a lot more to it though and where TA fits into the picture but it would be pages long.
I’d highly recommend the following books if you want to become successful looking by term trading options:
1. Technical Analysis of the Financial Markets
2. Options as a Strategic Investment
3. Options Volatility and Pricing
4. The Intelligent Investor
5. Security Analysis
Next to trade options successfully you need to have a lot of fundamentals which those books help build and a solid data broker. Unusual whales and those guys are trash. I personally use GammaStrike and I seriously think it’s the best. there are other comparable one but they make false assumptions with some of their calculations especially with volatility and it f’s things up. The data a provider gives you, a solid foundation to interpret the data, and practice interpreting the data and trying to trade it are where you should start once you’re ready to take on the market again. I would paper trade until you become successful at making analyses and then trading them to profit.
$300 is way too small honestly. You’d have to use the entire account to even get a single contract that isn’t far OTM, and then if it goes poorly you’ve blown your account.
Save up at least enough that buying a single ITM SPY contract won’t use more than 10% of your account.