I feel like traders donβt like buying time on their options for 2 main reason π
π¨ 1. They are impatient and want to put money in and expect to get nice returns right away to get that euphoria
π¨ 2. They arenβt knowledgeable on the Greeks (delta/theta) and the benefits of buying 7-21 DTE and donβt believe you can get enough of a % move on 2 week out contracts in a single day trade
But you absolutely can π $SPY
Fintwit is undergoing a shift where individuals are either attempting to make extraordinary predictions or explain concepts based on isolated instances.
This development is concerning because it deviates from the essence of trading, amateur hour and hubris.
In trading, being right does not help you much in trading. How much you make when you are right and how much you lose when you are wrong is what matters.
The current fixation on achieving perfection is distorting the trading landscape, creating a perception that a high success rate and pursuing extreme outliers are essential to success.
This trend reflects the present small-cap cycle, marked by significant long-term outliers that are bringing out unfavorable behaviors in people.
When discussing trading outliers, the primary focus should be on effective risk management, and individuals should know better.
Teaching people to catch the next huge runner will lead to ruin.
The model below shows exactly why this trend is happening now:
Chart below showing the average intraday chart for gaps above 20%, 1mil volume and >1$.