90% of retail traders starting with $5,000 lost everything, while 1% made a living. That same $5,000 in the NASDAQ nearly doubled for almost everyone. Stop chasing profits and measure yourself by Sharpe ratio instead. A few strategies with real edges: opening-range breakouts, post-earnings drift, out-of-the-money put selling, earnings-volatility harvesting.
I need you to think about your trading performance over the last year. Lock in that number in your mind. You got it? Okay, 'cause we need to talk, bro. We really need to talk. Out of 1,000 traders that put $5,000 in their trading account or prop firm account, 90% of them lost all. 7% are at break-even, 2% maybe got a small profit, and only 1%, probably less, got a real profit or made a living out of it.— but the truth is 100% of them spent hours and hours in front of the chart the entire year, hundreds if not thousands of dollars in trading courses and commissions and spread, making brokers and gurus rich, got extremely stressed out, frustrated, family and friends doubting him, not fun. But out of the same $5,000 put by 1,000 investors in the NASDAQ instead, 100% almost doubled their money, 0% lost all of their money, 0% spent more than 10 hours the whole year in front of the charts, and 0% of them spent more than $10 in guru's courses and commissions. This thing should make you very angry. Of course, this was the best year of the NASDAQ or one of the best ones. If you invested in the dot-com bubble, you would experience an 83% drawdown that wouldn't recover before 20 years. But the point is you need to stop thinking in terms of prop firm accounts or money you're gonna make. You need to start thinking in terms of risk-adjusted returns because the only way that trading makes sense to spend all of that money, all of that time, and all of that frustration is if you can be statistically sure you can at least beat the market, beat an average investor. The number that tells you this is the Sharpe ratio. The S&P and the NASDAQ has a Sharpe ratio of 0.5. That means that for $1 you risk, you get 50 cents of return, more than just lending the money to the government for a bond. And some strategies that are scientifically proven to beat this are the opening range breakout, The post-earnings announcement drift, out-of-the-money put option selling, and earnings volatility crush harvesting, still option selling. But please find an edge that has a good Sharpe ratio and then apply that fucking edge. Don't just use some random concepts. Gather fucking data or you'll be always within that 90%.
