Been thinking about day trading options. I keep hearing about people losing their entire accounts.
Is it possible to make consistent profits while minimizing risks? I have a full-time job and can only trade during breaks or after work.
I might be too cautious, but I really don’t want to risk my savings.
Managing risk is possible but it took me three blown accounts to learn proper position sizing.
I lost $2,400 in my second month because I got greedy with a single AAPL put. Now I stick to 1% risk per trade and use stop losses religiously.
Your limited trading time might actually help you avoid overtrading like I used to do.
Sticking to small position sizes saved me from bigger losses early on.
Options day trading can work but position sizing is everything. Never risk more than 1-2% of your account on a single trade, no matter how confident you feel.
The challenge with limited time is you might feel pressured to take bad setups. Better to wait for clear signals than force trades during your breaks.
Start with paper trading first to see if you can actually be profitable before risking real money.
Risk management works if you follow data. Trade only liquid options with tight spreads. Set max daily loss limit at 2% of account total. Time constraints help avoid overtrading mistakes.
Yes, but only if you treat it like a business with strict rules. The horror stories you hear are from people who bet their rent money on single trades. Keep your risk at 1% per trade maximum. If you have $5000, never risk more than $50 on one position. This way even 10 losses in a row won’t kill your account. Your time constraint is actually good - forces you to be selective instead of jumping into every setup. Focus on high probability trades during market open or close when volume is highest.