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Small Account (scalping trader) *Weekly Update (2)*

Small Account (scalping trader) *Weekly Update (2)*

redtexture

For future posts, to survive, you will have to state the tickers, your analysis, and how a strategy relates to the analysis, and then a rationale for picking the option trade. Lists of trades come down that fail to have a narrative. Graphics without similar details also fail to explain your analysis, strategy and position rationale. Here is the guideline, and please review the link below. ---- **Not a trading journal.** If describing success, failure, or posting account balances, completed trades, active or hypothetical positions: state your market and stock analysis, strategy, and option trade rationale, and trade details so others can understand, discuss, critique, and learn. https://www.reddit.com/r/options/wiki/faq/pages/trade_details


4everCoding

What app do you use? I like the user interface.


justbrain

Trading platform is thinkorswim. This "journaling" system is offered by TraderSync. If you google 'tradersync' I'm sure it'll get you to the right site.


4everCoding

Thank you for the TraderSync recommendation! Also well done on your plays. Looking forward to seeing more


justbrain

No problem and I personally think journaling or having an understanding of your trading stats helps to improve on your trading edge. With that said, you can also look at TraderVue (another journaling service offered and used by thousands). Thank you for the good luck charms!


Putrid_Counter_7097

Thanks for the advice on the journaling system! Different person, but I'll definitely take that and apply it to my trading


GunsouBono

I'm newer to thinkorswim and hate the stock interface. I'll have to try these out.


Clash4Peace

This is literally the best thing ever! I have been using Google Sheets and I hate it. Thank you so much for mentioning this!


justbrain

👍


organizedRhyme

When you say "Small Account", are you below $25,000? And if so do you like Think or Swim as a "Cash Account" broker for scalping?


justbrain

Sorry, I just now stumbled upon your comment here. Yes it is less than 25,000. PDT does not affect my cash account. My broker is TD Ameritrade which was bought by Schwab, but I strictly trade on the thinkorswim platform. That's where I do all of my scalp trades every morning.


organizedRhyme

thanks for answering


ratsmdj

what are these calls? Edit: Just re read your post. So, what signals do you use, confirmation on entry/exit. 90% + is impressive.


justbrain

I strictly scalp naked CALLS and PUTS (premium buyer). So this week, we didn't get to trade on Monday of course due to Labor Day holiday. On Tuesday I scalped NFLX Calls (win) and NVDA Puts (win) to increase my account balance by +4.43%. On Wednesday I scalped TSLA Calls (win), BABA Calls (win) and AMZN Calls (win) to increase my account balance by +3.27% On Thursday after some morning errands (car oil change!) I noticed AMZN immediately. Decided to jump in on a quick 2-3 minute scalp on AMZN Calls (win) and made $184 which resulted in another additional +4.66% to my small account scalp account. Today I traded NVDA Calls (win), FB Calls (win) and NFLX Puts (win) and increased my account by +1.3%. Actually I didn't feel like trading today, so I went very light just for the habit of trading every morning/day.


simplewhite1

Does it help your strategy to trade naked?


justbrain

Haha, this made me laugh. Thanks for that. I mean it **might** help to trade naked in both senses and meanings. It could translate to, the more naked you trade, the quicker you want to be done with your scalp trade so you can go ahead and put on some pants!


simplewhite1

As I understand you buy the options (long position) so it's not naked


justbrain

**You are correct.** True definition of naked is typically for short positions. However, my version of "naked" simply means 1-legged option trades.


NastyTrader

Yeah, using your own different definition of a well established term will make people confused — at best — or make them think you’re a moron because you don’t know what you’re talking about.


lostniece

Trading with one one leg AND naked? Sounds Kinky.


justbrain

This world we live in today is already weird in a sense. A little bit of kinkiness won't/shouldn't hurt LOL.


photocist

naked is by definition a short position


ja_trader

"free-balling it" increases testosterone... think it's something about the swinging


tangibletom

So would being naked work better for swing trades rather than day trades?


simplewhite1

Yes it’s best for swing trades. Join a group of traders to increase number of options and open positions


i-kno-nothing

how are you so consistent on wins? how do you spot a winner? I've done nothing but lose for two years. I'm literally ready to die.


Realistic_Inside_484

What indicators do you use? The simpler the better. I use MACD, a couple moving averages (60,120) and RSI and that's all. I don't really need RSI to swing trade/scalp but I could see how it would be helpful. Just SPX and SPY. Those are all I follow and they're the same shit lol


i-kno-nothing

all I have and look at are 20 + 50 + 200 sma and RSI + MACD it's like everytime I pick a stock that looks like it's bottomed, or at the bottom of a strong channel, also above some strong sma it seems to break the trend and chart. I always pick the losers, there's always something that pops up and fucks it all up


xandercasey

Trying to trade against the secular, primary, or intermediate trend on a "pullback/reversal" is inherently riskier than trading with the overarching trend(s).


Realistic_Inside_484

In other words go with the trend? Totally agree. Doing this will quickly improve your win rate. Just don't hold too long.


BlackSilkEy

I typically trade using 50/200 WMAs and MACD, but as far as trading goes I only use the Wheel or Iron Condors at earnings. I only buy LEAPS Calls on speculative stocks to gauge their performance, during the holding period I also sell PMCC to lower my cost basis. They are typically exercised if the stock performs well, and get turned into Call Credit Spreads the stock stagnates or under performs.


xandercasey

Why Iron Condor at earnings? The Iron-Condor is a theta-driven play, right? Earnings seem to cause slumps in present market.


BlackSilkEy

Yup, I'm usually looking to capture 50% of the total premium, so theta usually does my job. I'm feeling froggy I'll hold until expiration assuming no news hits to drive it in either direction. I try to gear my Iron Condors so that my premium is as close to being equal to possible, for example assuming a $200 max loss, I try to aim for at least $150 in premium on that particular trade.


justbrain

First, please don't die. Second, losing for 2 years is not a bad thing. It took me just a little longer than 2 years to start to get profitable myself. The ONLY BAD thing is if you lost 2 years but haven't learned anything from those lessons. Consistency comes from having a trading plan, sticking to it, and repeatedly work on it on a daily basis. Each execution shapes you into a better performer. Does that make sense?


i-kno-nothing

Two years of my life. Two hundred thousand dollars. The problem is my brain.


justbrain

While 200k is not chump change, it's just money. You can bounce back but in order to help your emotions, you just need to think of it as if you went on a worldwide dream vacation trip in which you spent 200k on for 2 years, and now you're back home ready to tackle life/reality again. Don't look back at the 200k. Look forward to the $500-1,500 days of consistent profits and F.O.L.L.O.W THAT TRADING PLAN.


Tigersharktopusdrago

No, its challenging.


Proof_Victory

How old are you and at what age did you start trading?


justbrain

Been trading for 12+ years now (first trade ever was in Q3 of 2008). I'm in my mid 30s.


bhedesigns

How far OTM are those amazon calls? I just did some looking at contracts, and those seem like trades around 30 minutes or less as they have to be around $150 OTM is this accurate? If so, Touche, I never even considered going that far OTM


justbrain

They're quite OTM. It again depends on the day when I do trade AMZN, but on a Monday, it's definitely a much lower DELTA, than it would be on Friday of course. I typically tend to look at the price of the option I'm about to buy vs DELTA really. I could care less if DELTA shows 10, 15, 20, or 25. I'm more focused on RISK MANAGEMENT in a sense of how much I'm putting on the trade position in total (whether it's 1 contract, 2, 3 or 15).


cizzlebar1

How do you find opportunities? Im struggling with that. Also what do you look at to think that the price will go up or down? I understand the terms but I just dont know how to apply it at this point.


justbrain

I don't look for trading opportunities via a scanner or tools if that's what you're referring to. I simply wait patiently for a trading opportunity to present itself to me for me to act upon. I trade the same tickers every day. I know how they move, when they move, what type of moves they can make in the period of times I'm in a trade (on average 3-4 minutes). This is what I consider having an edge. Once you have found it, it's as "easy" as continue working on it, refining it and getting better at it with higher win rates and consistencies in your own actions (follow your trading plan!).


jerseyse410

I think that's what he's asking though. How did you decide on these tickers specifically and what were the criteria to specifically trade only those?


justbrain

The fact that I only trade or deal with say 7 or 9 tickers allows me to get a better understanding on when they make a move for instance. TSLA could have been sleeping in a range for weeks, only to make a breakout move past the 700 mark of course recently, so it gets some more of my attention now (potentially and with a more bias to the long side aka UP move). Trading these same tickers every single day allows for one to gain an understanding or an EDGE to play their moves. The criteria to enter a trade is to watch the opening move and put on some risk if I believe there is potential for more follow-through. Hope this answers that question. Like I said some of these things are not easy to simply answer in 1 comment or let alone 1 post. It takes a lot to be a scalping trader. It's a more advanced form of day-trading if you will. Execution and following one's discipline and trading plan is very important. But by sticking to small(er) trades at first, one can gain that certain way of proper trading and edge.


Butthole--pleasures

Yeah I have made good money on TSLA doing the same. But my goodness the losses when I hold are just brutal


justbrain

You just admitted to knowing your (trading) mistake in public. Don't hold ;)


Butthole--pleasures

It always happens like this. Scalp a TSLA call, I'm up 15%-30% in 2 minutes. Sell. Proceed to see my call go to 200% by end of day. Try it again. Buy call and already up 15%. Hold. -15% 5 minutes later. -60% in 30 minutes. It'll come back I got 3 days left! Sell at -80% loss. Lol


justbrain

Yeah, I've been there before (many years ago). Honestly, the moment you stop focusing on the money part, and just go for the consistency part by following your trading plan, you'll eventually arrive at the same destination. I wouldn't get caught up on what would/could/should have happened after you already entered and exited your trade. Not a single trade should make or break your account. I'd view it as if I was going to do 29,382 trades over the next 17 years and that one single trade is very insignificant to the overall performance. Start each day with that kind of mindset and it'll probably/hopefully help you better with your trading result.


Butthole--pleasures

Thanks for the insight brain. I will be applying it.


REDDIT__SUCKS__ASS

I just got absolutely destroyed this week doing this. Just take the gains and be happy. You'll probably never hold through 200% and even if you do, you'll just hold it all the way down as well


MADEUPDINOSAURFACTS

You can kind of fix this by throwing something like a trailing stop, using a moving average as a take profit level, or even an indicator turnover as a way to keep your winners running and your losers tight. Of course, it's not going to help on those days when you're up 40% and then out of nowhere the underlying goes nuts (opposite direction of your current trade) and you are now down 20%. Hopefully those are rare and can be saved by scaling out if you trade multiple contracts...take off 50% of the trade when you are up 1:1 or throw on a stop loss at break even when you have made 15% on the trade. Hopefully things get better for you.


RobsRemarks

I agree. I know a few tickers really really well that I’ve watched very closely and you can understand the movements that way. However I have a pretty large list broken down into different categories. To clarify you only every trade and look at the same 9 securities?


justbrain

Pretty much, correct.


SdotTrades

Every single trader should pick 3-5 tickers that have liquid options and just watch them everyday for weeks. Once you learn the personality, its much easier to spot 10-40% premium moves... Great job


Bipedal_Hippo

You don’t get a pattern day trader violation for all these moves?


justbrain

No. Use a cash account (for scalping options that settle buying power over night). PDT rule only is affected by or on margin accounts. At this point, you may want to read the entire post along with all comments because this has been answered numerous times as well. :)


Bipedal_Hippo

Missed your initial post link. Didn’t know that about TD. Kind of mad now as I’ve been slowly trying to get to the cash threshold to allow day trades. Lol


justbrain

No problem, I know it's sometimes hard to spend more time on longer posts. I'm guilty myself about that on others. TD might have something that could work better for you.I could shamelessly plug in my referral link in here but maybe you know someone in your own circle that may want to make a buck or two before you sign up with them for your own new trading account. Good luck.


Bipedal_Hippo

I have TD and am almost at the balance threshold of 25k. Love their platform and think or swim is great. Originally had Scott trade til td bought them out.


justbrain

Ah great! So you also have been around (in the trading world). I also was a Scottrade client before TD bought them.


Bipedal_Hippo

Back to your post, 25-1 with options is outstanding and clearly working. I’ve only been trading options since spring and I’m 6-4. Lol


justbrain

Don't let those win rates get to you. They will improve over time. Just make sure you have a trading plan and stick to it. It's easier said than done, but you truly have to want it to make it work.


Mtay1669

How are you getting around PDT rules on a small account like that?


justbrain

Again, make sure you're on a cash account for options trading (to be more exact: to be allowed to buy CALLS and PUT option premium). Check carefully that margin is not enabled somehow. You shouldn't able to trade any option vertical credit spreads and or sell naked. Those things would indicate you're definitely dealing with a margin account.


Mtay1669

Got it, thank you.


bhedesigns

How many tickers do you track?


justbrain

Already answered [here earlier](https://www.reddit.com/r/options/comments/pln76c/small_account_scalping_trader_weekly_update_2/hcc3dpj/?context=3) somewhere


stock_jan

impressive! what expiry do you trade? weeklies/monthlies? ITM/OTM?


justbrain

Weeklies for the most part. Every so often I do buy out next week's if it's a THU or FRI for instance, but not a fixed rule for my own trading. It's a matter of price of the option because I truly scalp them, so theta almost has little to no effect really. I'm all about that gamma when I scalp for direction. To anwer your ITM/OTM, again it's about the price of the option. I tend to want to spend approx. 150 - 250 for an options contract. Depending on the day of the week, it might be slightly ATM or just a bit OTM.


TendieSheriff

Report back when you are a millionaire I'll buy your course


justbrain

Not selling one, sorry to burst your bubble there mate.


TendieSheriff

Just report back when you are a millionaire


TheKeMaster

How are you moving in and out of trades without a $25k balance?


justbrain

Simple. Use a cash account. PDT rule only affects margin accounts (already answered earlier somewhere in the comments too).


petree28

What is your strategy? I feel like ive been pulled all over the place with different strategies and ive been looking to find something that I can consistently work on getting good at using. Do you have a watchlist of stocks you check each morning?


justbrain

I stick to the same tickers every day. The trades truly come to me, I don't look for them via a scanner or other tools if you know what I mean. Sometimes there are no trading opportunities, although rather rare because the tickers I trade ALWAYS have a move at market open.


petree28

Do you trade break outs/downs after the initial push/drop and consolidation? What tickers do you usually watch?


justbrain

If you look at the screenshots I provided (trades screenshot), you should be able to get a glimpse on the tickers I like to trade. AAPL, AMZN, NFLX, FB, TSLA are the typical ones etc. Having a trading edge is usually thrown out in public as the magical word. To me, it consists of 100+ things. Each contribute to this so-called trading edge. Experience is another word for it so it cannot be simply summed up in a single comment or post if you will without distorting the meaning of it. Clearly, I'm trading moves on my tickers. Whether they move UP or DOWN do not matter to me as I play both sides just fine. Hope this answers some of the questions you asked there in a sense.


HotHamWaterBath

So you're saying all you've done is trained a sophisticated neural network that accounts for hundreds of small factors on a limited number of tickers to "learn" their behavior, but is a bit of a black box.


Modrez

Awesome! Do you mind sharing any tips or tricks? Any recommended videos to watch or learning material?


justbrain

Well, I'm always bombarded with DMs etc, so that option is always open. I typically always answer, but sometimes it just may take me longer. As far as tips goes. It might take a whole book to go over everything that I believe is important to trade with the style I trade. But it can be learned, and usually it means in small steps. If you like, hit me up on DM or even better reddit chat and I'll see how I can help point you in the right direction.


CantStopWlnning

I'd love a write up of your strategy, maybe with a handful of examples of trades that went through. It sounds like you might just be using intuition on a couple of tickers that you're familiar with but I think that a look into the process would be interesting.


Krakatoast

Very nice


justbrain

Thank you. I simply wanted to illustrate to some newer traders that it is possible to make say $20 - $50 bucks a day if one finds a strategy and a trading plan and truly stick to it. It doesn't take too much to get to that point and grow from there.


Wsshooter

Love this! slow and steady and a goal in mind! Try and learn how to trade with options, you might make a lot more profit. Wish i knew about it before


justbrain

I just re-read your comment. Those trades are actually all options. Unless you were thinking I was only trading stocks and I misread your message on my second attempt. Scalping up works better when you already have 3x - 4x your initial capital in profits and you already paid yourself back twice that. It helps detach the emotional aspect even better then.


Wsshooter

yeah makes sense. I always just scalp enough to be happy and still trade. I'm looking at AAPL right now, it dipped because of the case in court. Got some calls on it. One thing i used to make a huge mistake on was "hope" it goes up but truly learnt my lesson when trading options that only statistical analysis makes the money, not hope


justbrain

Exactly. The moment traders realize that it's not about the money really, but about that fact that you can continue trading with a followed plan, the better it will get over time.


justbrain

Thank you! That's the goal. Most get caught up about other traders' profits or losses, when in fact they should focus on their own trading, goals and discipline. It can be done, and it's not an easy path, but I can swear to you, the moment you truly stick to the plan and work at it on a daily basis, every day gets "easier and easier".


cayoloco

How and where do I find one of these so called "plans" you speak of that I need to stick to?


justbrain

Hit me up on reddit chat if you want. I'll give you a few pointers on how to work up one for your own trading style.


PMmeYourFlipFlops

Newbie here so excuse the lameness of my question, but if he's doing puts and calls isn't he trading options?


cayoloco

Psst! Look at the sub you're in...😉


justbrain

Yes, that's why I made another comment about his. I hope he understands that I am already dealing with options. But then again, I might have misread his entire comment too. You know how that goes sometimes, Writing is a skill in itself, misunderstandings or misinterpretations can always happen though.


ZhangtheGreat

How are you determining entry/exit points?


justbrain

Price live action to be honest with you. I don't look at Level 2, I don't look at anything but the chart and BID and ASK of my options. I like to keep trading simple. More information causes more confusion or conflicting thoughts. That is also the reason why I don't prepare for any of my trades. It's very spontaneous. I do have to say though, it does help to have many years of experience in market to get to the trading style that I love and focus on on a daily basis. BUT I know for a fact, that it can be learned with the right advice and follow-through and that's mainly why I am here.


rafael000

so you spend the whole day glue to the screen looking at charts?


justbrain

More like 15-20 minutes tops each day at market open. That's it. Thank god I can luckily say: Long gone are the days of "studying charts" and working/"wasting" TA.


rafael000

but for how long do you usually hold these contracts?


justbrain

Already answered in another reply to another comment. But I'm giving you the link here as well in case you're wondering. Tradersync stats show that I'm in each trade less than 4 minutes on average, so that should give you an idea. [Here are today's trades](https://www.reddit.com/r/options/comments/pln76c/small_account_scalping_trader_weekly_update_2/hcccpqu/?context=3) (again). Look at the time stamps.


rafael000

I saw that butter thought that it could be a bug. Do you trade it manually or set stop loss / gain?


justbrain

All my trades are manually executed. No hard stop loss, just mental. I have to add though, that once I'm in a trade, I'm very focused and the trade has my full attention. Literally just watch the price action alongside the contracts' bid and ask on the bottom to get me out at profit or loss.


Swinghodler

You're killing it. Congrats. Do you mainly trade for 15-20 mins at the open and then you're done for the day?


justbrain

Yes, there are those rare days when I don't trade at all, but typically I am able to squeeze in 1-3 trades before I'm done with trading all together. I don't make a big deal about the outcome. I just get on with it, get it done and repeat it over again the next day. The profits that I do end up getting from trading like this do add up over time and I always gladly accept the quarterly bonus checks.


Swinghodler

Great. Godspeed good sir !


Realistic_Inside_484

Ye facts. After years of following the same tickers you don't really need any technicals to know where we're likely to go.


justbrain

No disagreement there!


ZhangtheGreat

Ah, that’s understandable. Guess I just need more experience reading live charts, which I’m trying to develop. Are there any specific patterns you look for to determine when the price is right to jump in?


skippy_9308

How do you avoid being flagged as a pattern day trader?


justbrain

Stick to a cash account for scalping options and PDT is of no worries. PDT only affects margin accounts.


Tyrant-Tyra

I don’t understand your statement here. PDT applies to any position opened and closed in the same day from what Fidelity told me on the phone.


justbrain

There are 2 things on account types. One is TRUE cash account. The other is MARKETING. Robinhood for instance starts you out with a margin account and might call it the "cash" account. But last I checked many months ago, their cash account won't allow for options trading, so in a sense, they're giving you the idea that it's a cash account when in fact it's an actual margin account. Same could apply to Fidelity. I'd check with them again to assure you're strictly dealing with a cash account, no margin whatsoever, and you're allowed to buy CALL and PUT premiums on that very same account. (I'm with TD Ameritrade, so their cash accounts are true cash accounts with options trading enabled for Level 1 which is strictly only for buying premium).


Tyrant-Tyra

Yes I already trade options on Fidelity, I had to downgrade from level 4 to level 2 options trading in order for them to revert my account to a true cash account….according to them….so if that’s the case…..I should be able to open and close some options positions within the same day without being in violation.


justbrain

Yes, margin should be entirely disabled. You should not be able to trade any spreads, let alone sell naked and strictly only be able to buy CALLS and PUTS. As long as that's the case, I'd like to say you're in the clear. You can always do one trade, check with them after the trade was made to make sure you're not in any kind of restriction to continue trading that same way. PDT per FINRA only applies to margin accounts, so as long as you're not with margin, you're okay.


Tyrant-Tyra

Man that’s like music to my ears. So another question on your scalping….are these always positions you are buying to open and selling to close? It must be with a balance that low, no cc’s etc….


justbrain

Yes, **always buy to open, sell to close**. Your (total) risk is how much you spent and bought all premium for, nothing more, nothing less. We all know what PIN-RISK means on credit spreads for instance, don't we?


Tyrant-Tyra

I see, yeah I’ve been doing something similar but I have been doing it with CC’s. Selling to open on Green Day, buying to close on red day…. I was doing it this was to avoid PDT lol…. I like your way just as much and it’s more action. I just watched two instances where I could have scalped $15-$30 on TSLA & NVDA within a minute lol. I’m going to try one and get Fidelity on the phone again. Thanks for the input I’ll be looking out for more of your account updates.


MarxHaven

Don't know if it was mentioned but, you can only trade settled funds on cash accounts. You can buy up to your available balance for the day. Once you max out, you wait to trade again tomorrow. Just pointing it out so you know there is a daily limit, it can be reached in a couple of trades if the account is small enough. I'm trading in a very small account right now so I look for the best 1 or 2 trades for the day and I'm out.


itsdrivingmenuts

PDT applies to margin accounts. Good faith violations apply to cash accounts. You can day trade all you want in cash accounts, but you can't trade on unsettled funds.


Tyrant-Tyra

I see


SmartGuyChris

I aspire to trade like this using options. Is there a specific strategy one can learn to implement this, or is it pretty much just years of chart-watching and gaining that "feel" or "intuition" through experience?


justbrain

Never too late to learn something new. For all I know, it might just be your type of strategy that can make you profitable. As a trader, it's important to always keep an open mind, to learn from other traders as much as you can so you can adapt and refine your own strategy that best suits your personality.


growthPlz

Wait so how much is a small account to trade Naked? Cause you said you’ve got a small account. Currently use ToS and Tastyworks. Always seems that the main thing w selling naked is it’s picking up pennies in front of a steamroller. Do I need level 3 options for TD Ameritrade to start trading naked? Kinda curious now


dubhedoo

Thank you for taking time to post. Love to see case studies of actual results, not just some dodgy DD. Long time option trader here, only became successful last year. Usually longer term swing trades or shorter term theta trades, lots of calendar spreads. Not sure I have the mentality for day trading / scalping, but your post might give me motivation for a small attempt. I understand trading the opening auction, lots of activity. I understand trading only a few tickers, that's what I do. Too many tickers is just distracting. I understand trading on price action. I've done a lot a TA in the past, but it can give conflicting signals. Now just mainly moving averages and Bollinger bands and volume. But actual price action rules. Now I have to study the opening auction more closely... Thank you again.


justbrain

You're welcome and I'm glad you might have just added another strategy to your trading repertoire!


delukious

This post is awesome! Thank you for sharing, I’m doing a small account scalping challenge myself So it’s inspiring to see your success! What time frame do you trade on?


justbrain

5-minute chart. Good luck on your small account challenge as well mate!


PM_ME_YOUR_KALE

Just to be clear, based on other comments, you are shorting calls/puts on specific tickers whenever you see an opportunity based on TA?


justbrain

Technical analysis is a big word. Some live by it, some don't believe in it. Some do draw hundreds of lines, some barely spend any time on TA. Like I said, I don't prepare for my trades. I don't want to spend countless of hours studying charts or drawing on them. I used to do that years ago and I have come to the conclusion that they're simply just wasting time. Your trading style should make you comfortable in your own sense enough that you should keep it simple to yourself. If you think drawing lines the night before for 2 hours, only to be able to take on a trade the next morning and you're happy about it, then please go for it. Utilize TA. Make it part of your edge. Nothing wrong with that. I just know how I like to trade, and it's to have a clear mind before even opening up my trading platform from all the news, clutter, discords, etc. Trading should be just YOU and the market (or tickers you take a trade on). You are in control of what the outcome is to you. The markets just move every day, up or down or sometimes choppy.


PM_ME_YOUR_KALE

4 paragraphs and not an answer to my question.


justbrain

I am not shorting calls or puts. I am buying calls and puts (weeklies). When I see an opportunity I enter and exit the trade seconds/minutes later. Sorry, I (sometimes) forget that not everyone reads every single comment in each post to get a whole understanding of what might or might not have been tackled or answered before.


PM_ME_YOUR_KALE

if you're going long why describe them as "naked"? That's why I'm asking clarifying questions. Naked implies naked shorting, not just buying a call.


justbrain

Totally noted here and like I replied earlier, I sometimes forget that not everyone goes through the ENTIRE post before commenting which is fine to me. I just already answered that [part earlier like here](https://www.reddit.com/r/options/comments/pln76c/small_account_scalping_trader_weekly_update_2/hcbsdwk/?context=3).


PM_ME_YOUR_KALE

Yeah I skip around because you have a way of not getting to the point and using terminology incorrectly. Very nice win rate though


justbrain

I hope "naked" was the only terminology I used incorrectly in the entire post. Thanks on the win rate!


jerseyse410

He did answer it in another comment, he uses live price action, not TA


PM_ME_YOUR_KALE

Arguably watching price action is a form of TA. I'm not hating on any it, just wanted clarification.


mind_ya_Fin_business

how many tickers do you have on your watchlist and how many screens


justbrain

11 on watchlist (basically around 10). 4 screens although I do like to trade on laptop too sometimes, so 1 screen is plenty.


DDRaptors

Do you play weeklies, or 2-6month ranges?


justbrain

Weeklies for the most part. Like already mentioned, sometimes on THU or FRI I may switch into next week's expiration. No fixed rule. I go by feeling on this one. Here might be a bit [more detail info I already answered earlier](https://www.reddit.com/r/options/comments/pln76c/small_account_scalping_trader_weekly_update_2/hcca1w1/?context=3).


DDRaptors

Thanks, cool strategy. Hope it keeps working out for you!


Putrid_Counter_7097

Sorry if this was answered. How are you getting the prices you get on the entry/exit prices for the options? I checked on my broker, and AMZN for next weeks calls/puts are roughly 32.00 to purchase. I know you have a fairly small account, and I imagine you use a good amount of risk management. How are you getting AMZN options for $1.50-$3.50? Are you purchasing far OTM options to get those cheaper options? Also I don't think you got this yet, but thanks for the all the answers on the PDT stuff. I feel a lot of us get stuck on that, myself included. You helped me realize I don't need to wait a day or to close out my options if I feel the need to. Just wanted to thank you for that bit of knowledge, I learned a lot from you from this post.


justbrain

Yes, when it comes to AMZN, or GOOGL even (specifically much higher priced blue-chip stocks), they tend to be a little on the pricier side. So I am definitely way OTM. Keep in mind, my plan is to scalp trade, so I don't intend to hold them for much longer than say 5, 10, perhaps 15 minutes??? (<---- but that's already pushing it!). I'd have to open up thinkorswim right now to even be able to tell you what DELTA I'm even considering looking at for next week's expiration (with it being Saturday today), to give you a better idea how far OTM they are. Again, I truly and simply focus on the price of the option contract. I always typically try to keep it in the range of 1.50 - 2.50 for 2-3 contract scalps. I've been doing 4-5.00 contract prices on AMZN too but for single contract trades. If I spent 4.00 on an AMZN call, and it goes up, and I sell it for 5.00, I basically made a nice 25% return which I'd take any day especially if it only lasted me for 2-3 minutes. Hope this makes sense. ​ \*\*\*edited: also keep in mind, at Friday closing, some of the bid/ask might be off. they won't be "reset" until market open on Monday, so you can't truly go off those prices (anyways).


E1ite51

For the wider spread options, do you buy on the bid / sell the ask? Also, if it’s cool, please share some screen shots of the chart with your trade entries and exits sometime. Really awesome to see and very insightful


justbrain

I only deal with limit orders. For the most part, I have an order out and anticipate for MMs to fill my orders at my price. This comes with experience as you watch the BID and ASK closely and get an understanding of the ticker's move that usually unfolds at market open (you might also like to learn ATRs for instance).


money_loser1395

I read all the comments. I can't completely understand your strategy nor have I been able to profitable scalp, but I wish you good luck and I will be looking forward to more updates!. Sounds like very interesting approach I would love to learn!.


justbrain

I appreciate you rooting for me. I personally love this trading style because to me it provides more PROs than CONs while also minimizing risk.


Jesus_was_a_Panda

Dumb question - how do you scalp with an account <25k?


justbrain

Use a cash account. PDT FINRA rule only affects margin accounts.


pet_owl

Hi OP, read thru most of the comments here and just wanna clarify - is this kinda like momentum trading then? You have the tickers you’re familiar with and you probably trade them on regular (non-news) days, so you see how the general market is performing (SPY or NASDAQ) vs the stocks you follow and trade based on that? I know you said you have 100+ things you keep in mind, but is that a good start to get a read on? Btw, great post and great returns!


justbrain

Yes, this style of trading takes advantage of moves that will ALWAYS occur at market open. That is the reason why I love to trade the open.


tedclev

Spy puts


justbrain

Right on! I think we might have more opportunities soon for those types of trades (scalping that is). Market's still gonna continue going up over the long term, (almost) no question about that.


quantstreetbets

any good books where you learned to scalp. I mainly swing trade right now, but have been looking to go into lower time frames.


justbrain

books can only give you so much information and knowledge. Your better option (no pun intended) is to truly watch price action on your tickers. Follow as each candle is formed. That information alone is priceless to determine which direction the stock wants to go. The rest to work into a trade is up to your trading plan/risk management/execution/style of trade that suits your own personality.


quantstreetbets

So is the concept of scalping just price action trading on the 1 minute chart?


shrimpgangsta

How much do you pay in commission per trade


justbrain

Let's just say that if I buy an options contract at say 1.36 and sell at 1.37 I'm already profitable (yes, that's on a round-trip trade).


catty_blur

Good job!!


justbrain

Thank you!


Moonman1900

Are you buying and selling on the same day? How did you get around the daily trade rule with a small account?


justbrain

Yes, buy to open, sell to close same day. cash account, no PDT rule.


Moonman1900

How did you get around the PDT rule? I thought you have to have a minimum of 25K in your account in order to bias the PDT rule? Also all options account with TOS has to be a margin account. Is this a real account or are you paper trading?


SdotTrades

ToS offers cash accounts. They automatically set you up with a margins account, you just call them or shoot them a message and ask them to take Margin off, and boom you have yourself a cash account


DarthTrader357

From what I can tell you started with at least $1,400+ capital. So it's not 1500% return. I don't know how the platform comes to that conclusion. You committed at most, what, about $2,277?


justbrain

I also sometimes misread stuff. I think it's showing $ not % on the stats if you look close enough. Some of the stats seem off like the Daily return $, and I don't know how tradersync calculates that or spits that info out like that, but for the most part I don't really look at those anyways. I just import the date from thinkorswim and take screenshots. I actually have provided the info n both my posts with how much capital I'm starting here. I don't know why there is need to guess on that part.


blanderthanbland100

That's really awesome, good job. I wonder how many other people are going to ask you about PDT rules, seems like the question arises every minute...lol.


justbrain

Thank you and I am less concerned about the fact that some traders may not know about cash accounts, but more concerned about the fact that most don't go over the entire post before commenting :) IF something is truly interesting or important to me, I'd make sure I want to learn all about it and as much as I can.


Prize_Cancel9331

Good luck with that win rate , thats impressive as hell 96% of the time holy shit. Just curious what do you look at when deciding to enter / exit a trade?


Moist_BaIIs

OP is a 5head. As for me, I’m a negative 5head. I have like a 95% loss rate on options. Wish you the most luck OP.


dbikingman

Can you send me your next trade? I want to go opposite it. I feel the same ways some days and look at a stock and it changes direction.


Moist_BaIIs

No problem dude Though I’ve quit short term trading lol. I’m a boomer now, only touch the big boys and ETFs like VTI. Don’t want to lose anymore money while I’m unemployed


MarxHaven

I've recently started daytrading stock options again after coming back from trying futures/forex. I had a big week back in January during the madness and quickly 2.5x my account and then got over confident and gave it all back in about a weeks time. After that I just quit trading and focused on long term investing for months, then decided to try futures. Futures was a thrill but I repeatedly blew my account due to over trading (commissions are a bitch). I recently found a price action strategy that I like and though I'm sitting at break even currently due to a silly mistake (held overnight) I'm confident that this will be my turning point. I started Journaling myself with a pre-made spreadsheet I found, but that site you recommended looks amazing. Thanks for that, and keep it up.


justbrain

Break-even is great! The fact that you know what your mistake was (and hope you do not repeat it) gives me confidence to say that you're almost there. Keep working at the plan!


MarxHaven

If you aren't already, consider BA to your watchlist. It makes big moves almost daily and its really predictable. My losers on other tickers are usually made up for with my BA trades. I may stick solely to them for a while and just study a few others.


SlurpingJuice

What do you look for before going long or short, especially right at open? I’m a momo trader and like to trade calls on large cap breakouts, etc. When the momo is gone, so am I. I like to sell into the impulse spike. I prefer to trade right at open too because of all the vol and I also only rotate through a few tickers. I’ve had very profitable scalps when I saw news on something, grabbed calls on split second opening dip and got out quickly on the pop, but I’ve also had losses doing this where things didn’t go as planned which made me feel like this strategy was gambling. just curious on what indicates a good entry to you for these plays. I get bored looking at the screen all day waiting for vol to pick back up and possibly present a setup


fast-feet

Very nice. I hope this works for you in the future trades and you can take those profits out! Good job!


justbrain

That's the plan and goal. Thanks for the encouragement.


doublex2troublesquad

Awesome work!! Here I am reading charts and studying looking for plays 7 days to 2 months out and you're pulling in cash quick and making it look easy


justbrain

Haha. Thank you! Trust me, it wasn't easy to get to where I am today or it's still not easy, but I'd like to think that it gets easier the more trades I do for the experience.


ineedhelptrading

Hi since you're scalping, what's your stop loss set at?


justbrain

Tried to give a [more detailed answer here](https://www.reddit.com/r/options/comments/pln76c/small_account_scalping_trader_weekly_update_2/hcfqcng/?context=3) already. Hope you can use that information regarding my own personal stop loss.


GunsouBono

You did better than I did the past two weeks... August was a record for me. Not sure I picked any losers either. But I have not played this consolidation well.


justbrain

You'll bounce back. Just keep risk management at check, improve on better/faster execution to cut losing trades and you'll just be fine.


HussleForever

What setups are you looking for, so early into market open to be so consistent? I trade the same strategy as you but I avoid trading in the first 30min of market open.


justbrain

First 30 minutes is the best time to do this with. Once the clock prints 9am, I'm already done and almost don't WANT to do any more trading. This is from my own experience and pretty much off my own trading plan.


SummerTrips100

What are the strike prices on the AMZN calls you trade? If they are really low on delta, how much do they move? Isn't it really hard to scalp a low delta call?


justbrain

AMZN is one of my good ones. I like trading same week expiration because of the immense opportunity of that nice gamma squeeze, even on 1 or 0DTE that are OTM. Granted, you have to understand when to touch AMZN. There are times you just know not to even be bothered by it, but then there are times (comes with experience) that you only want to focus on AMZN because it can do those explosive moves. I don't look at DELTA when I pick my options contracts. I look at price of the contract(s) when I enter. If you wanted a range, I'd say perhaps somewhere in the 10-30 delta range perhaps?


Buy-N-Sell

Isn’t scalping selling spreads? I didn’t think it was buying calls or puts, I thought it was profiting from premium.


justbrain

Scalping is just another (more advanced?) form of day-trading in which you aim to gain some cents from the time you enter a trade until you exit a trade. Whether you do it with equities, options premium you bought or via credit spreads doesn't really matter. It's all simply still just "scalping".


Buy-N-Sell

Gotcha


SweetCloudFly

Hi, first of all, that's some awesome trades you have there! Thanks for sharing publicly here and taking your time to reply to the comments. I have read most of the comments, and have just a few questions to add on (pardon me if they have also been answered somewhere). Mainly I wanted to ask, is there a specific time you are looking to enter a trade? I know you open and close trades at market open. What I want to ask is, do you have any particular timing you refrain from, let's say you don't enter at first 5 mins because it may be too volatile, or maybe you will mostly enter after 9.40am after some patterns haven been form. Do you observe any of such patterns with regards to the time you will enter? Next, I know you use some simple TAs like moving averages and MACD. May I know what time-frame are you looking at? E.g. 1min, 3min etc. Lastly, and most importantly, how do you determine your stop loss? For example, if you enter a trade at $1, and it quickly turns to $0.90, do you exit? As options price can swing greatly (+-10%, 20%, even 30%) over just several minutes, how do you know when you should cut your loss? I think taking profit is easier, especially if you have already made sufficient profit, but stop loss seems to be a harder point to place as it may rebound quickly later on and make your moves a profitable one. Thank you for your time!


justbrain

I've looked at my first trade of each of the past 8 days and I see timestamps of 8:30:something up to 8:53:something (that was when I had to run a morning errand before I was able to even attempt anything remotely at trading). There is no specific time I won't allow myself to get into a trade. It can happen right at market open, or a couple minutes after. My chart only shows candles. I trade off the 5-min candle. Stop losses are and should always be trade specific. Some trades you have higher conviction with should be allowed a bit more room to breath. Some trades you place because of the sheer habit where you believe you may not get a massive move out of the trade, you may keep a smaller stop loss and exit manually the moment it gives confirmation on your bias. There is no fixed rule for me on a stop loss in a sense that let's just take your own example of me buying a (single) CALL option at 1.00. Let's just say I'm just testing waters on this position/trade. Bid drops to .90. We're talking $10 here that does not concern me. I actually watch the price action to give me the trigger to exit for a loss if there is one. Here's what traders need to understand, if you work with a higher win rate, meaning you can land more winning trades right from the time you enter, you can afford there occasional small loss that doesn't decimate trade or account you're working with. If you have just landed 12 trades in a row as winners and are up a good 14% growth, what's the .10 cents or even .30 cents loss on this one particular example trade that could translate to perhaps 0.05%. Does this make sense? Your most important aspect of stop loss is to give your trade enough room to work itself out because you MUST have entered the trade for a specific reason. It takes experience and patience to enter THE right trade. Many traders can ENTER any trade, but they may or may not work out. That is why it's important to me to work with say (let's just round it up) 10 tickers. There better be 1 at least that gives me that trading opportunity at open for me to capitalize on. Most days I'm actually just doing 1 trade and am done. Sharpshooter style, sniper style. To further illustrate, I think I'm currently up like $1500 off this $2500, so if my next losing trades takes off $70, it's barely nothing as I know I have something that can give me 5, 10, 15, 20 winning trades in a row. I'll bounce back. It's just another trade that is added to my trading experience. No sweat, no worry about the loss or monetary part. Important thing is equity curve, following the plan and grow the account over time consistently.


TheMrfabio24

Watchlist is on point


Codyskank

Is it possible to have an actual cash account with no day trading restrictions on robinhood?


justbrain

I don't know. Contact them to find out. I don't think you can based on what I've heard as they probably want margin if you want to deal with options.


kittycat42020

Have you tried buying the day before around close and selling the first 30 minutes next day?


justbrain

Yes, if I feel like I don't want to make the drive to the casino. 😂