MojoRisin9009 t1_iubd1fx wrote on October 30, 2022 at 12:50 AM

One of the biggest reasons... Daytrading. Short term trading is the hardest fucking thing ever to learn and once people figure out it's WAY easier, less stressful and far more profitable to buy Jan. 23 expirary options, then they may actually start making some money, especially considering in THIS market they're bound to hit one way or another because by that time I guarantee the options will touch the money whatever direction you bought them in. PLUS, the 'get rich quick' mentality among new traders is just such a strong, magnetic force few can resist it.

squeakychain OP t1_iubdfwa wrote on October 30, 2022 at 12:53 AM

I guess with the volatility we re experiencing, we ll make money with puts and calls at least 10 more times by the 23 of Jan.

MojoRisin9009 t1_iubgk5e wrote on October 30, 2022 at 1:19 AM

I mean nothing is certain, but pretty much, and if you have to cut a position just hold tight until your loss becomes more managable. Of course not YOLOing is a good idea, as always. Lol. Honestly, RSI is 'usually' not a good indicator, and it's very dangerous calling a top or bottom, but in this market, I find it useful. Especially to see overbought/sold conditions, but trying to time those conditions down to a fews days or even a week is just a fools errand and daily charts/patterns/etc are so apt to reverse at this point there's honestly no point at all in trying to day trade unless you're a very experienced trader with the will/know how to IMMEDIATELY cut a loss, because holding any position of any size right now can blow you up reallllll fast. Of course, another huge reason is everyone here is looking for 500/1000% gains when we all know, yea, it's cool, but it's just stupid to try for that shit time and again. It's downright unhealthy and anyone that's done it and went onto survive knows it.

attofreak t1_iubh53g wrote on October 30, 2022 at 1:24 AM

> Short term trading is the hardest fucking thing ever to learn

lol, calm down with glorifying gambling. You're just guessing, and sometimes the game of chance is in your favour, sometimes not. Returns are mostly Gaussian noise, and any faint kurtosis/skewness/fatness of tails/correlations is barely captured by most of the degenerates. On top of that, option greeks are rarely discussed here. I had to go out of my way to learn that stuff. The math is all nice and pretty, but in real time, unless you got dedicated programs linked to data coming from your broker (forget about directly interfacing with exchange), most people are just running on hunches. Even all that effort seems like a mockery, considering someone will get lucky with a YOLO and that post will get pinned to celebrate the survivorship bias.

Whether a bull or bear or kangaroo market, there's no value investing of any kind. Occasionally, some finance student or trader drops in, shares a dd (who knows out of kindness of their heart or just trying to pump the instrument). Rest of the time, we just like the thrill of throwing real-world money after things we barely comprehend.

MojoRisin9009 t1_iubj242 wrote on October 30, 2022 at 1:39 AM

There are many profitable short-term traders out there, but it takes years to learn. Hence why there are so few because they run out of money, determination or everything else long before they reach a point to where they can actually become consistently profitable. It is possible and doable though.