Margin Trading

>>1513043

Why? Are you using your life savings or something?

>>1513056
no. I only use around 5% of my savings. Most of my money are in low risk/yield investments.

but still, the thought of losing hundreds or thousands of dollars in a day always gets to me. Thats around a months paycheck, if you think about it.

>>1513043
Risk defined options spreads.
Can't get called.

>>1513043
>I cant sleep easy and get stressed

So cut it out dude. You're trading size that's way too large for your situation. You're going to start trading on tilt and fuck up your account big time. Size down man.

>>1513064
>>1513068
thx dudes.. I got addicted to margin after some early successes.. but gotta cut it down and de-risk

thankfully i havent been fully rek'd yet, but had some close calls, which is why i got stressed

Does your dumbass use all 5% of your savings in one trade?

>>1513083
rarely, but ive done it a few times when i felt really bulish/bearish on something. Gotta go balls deep for the sweet gains, feeling

>>1513079
Yeah, you're lucky it hasn't been disastrous. Size down for a little while until you're sleeping again.

>>1513043
>How do you guys do it?

Step by step
1)Find a strategy with fixed in/out/management
2)Test it back and forward, make sure it works
3)Optimize it
4)Run a Montecarlo with your paramenters, compute maximum consecutive losses for say 10k
5)Calculate your risk level with Kelly Criterion, divide what comes out by half
6) This is how much you are going to risk

As long as your broker is going to give you leverage, you can easily run for 800% yearly returns. Enjoy being rich and buy me a beer when you get to your first million, you fucking jew

>>1513063
>but still, the thought of losing hundreds or thousands of dollars in a day always gets to me.

You can lose your life while driving to the local supermarket as well, but that does not mean that you should not travel till the end of your miserable existence.

Learn to accept risk faggot.

>>1513225
>knowing this
>not being rich already
But how? If it were really this easy, how aren't you rich already?

>>1513257
>how aren't you rich already?
I am. Made a big stash by swing trading on margin for a couple of years, then had to move to stocks because of leverage limits. After a certain limit your gains end up being capped, the only way to make an acceptable return on your investments becomes investing. Factor in slippage and bad fills

Which is why 3 digit yearly returns on futures or spot fx are no big deal. They mean little in the grand scheme of things, and you sure as hell won't be a multimillionaire with that

>>1513267
I don't even know what slippage or bad fills are.

>fillsbadman.jpg

File: 1473462011088.gif (2MB, 232x232px) Image search: [Google]

2MB, 232x232px

>>1513043
so what size of a leverage are you using then?

>>1513043
Trade options.