Just wrote my first covered call on apple

Trading fees suck up here

This post was edited by duffman316 on Dec 8 2020 11:19am

Using margin to buy is a great way to make more $ as long as stonks are going up.

Yeah great way to double your losses so I'm only doing it on things that are safe

Is margin ever safe? I'm not risking my house 🤔

Always always always set limit losses and auto sell orders to ur comfort

you don’t need to extend yourself that much. just dont get called (easy to say that)

Depends how much you use. Fundamentally it's a loan that you have to beat 5% a year on. That shouldn't be hard as long as you're not taking risky positions. If you're yoloing 500k on PLTR calls that expire next week you'll probably lose your house. If you're using a small amount to buy shares of a profitable company with low volatility and good prospects, it's significantly less risky.

Currently I'm only working with a few thousand as I figure out a consistent strategy I want to use, so my maximum loss isn't that much.

The more I see chart analysis the more I'm realizing it's trying to find consistent patterns in random walks.

Like, I see people making these fancy charts and saying "Yeah, this company did 300% earnings for multiple quarters and has no signs of stopping, but according to the chart we COULD see a down side of up to 45%!"

It's like trying to read tea leaves or bone cracks lol

This post was edited by Thor123422 on Dec 8 2020 12:16pm

ya i had the same realization when i was trying to daytrade crypto, u get on a hot streak and think you're a genius then get stuck for weeks and your profit projection goes boom.

much better to macro trade on a weeks to months scale where u can make more informed guesses and make your money off the yolo chad daytraders.

Technicals alone are trash.

I have found some things fairly useful and you get better at seeing some things.

From my personal experience, I have found some indicators like RSI and MACD to work partially. The moving averages also are pretty useful. I have the 200, 50, and 20 on mine. Sometimes when a stock is dropping and I'm looking for a potential entry I have found that they tend to stick to some of these moving average floors. Like it's pretty incredible how sometimes you'll be watching the daily tape and you will have a channel drawn and it literally will kiss the upper bound and get rejected or bounce off the lower bound when it's dropping.