This is just some candid, hard truth. Why am I often unimpressed with astronomical option returns? Because it is incredibly likely that the individual is hiding a pile of losses in the closet. Using 10x margin on your account? You will likely have a heart attack before you ever find true long term success.
Be mindful of the market cap size of the asset you are trading to determine the expected daily volatility. The chart below shows market cap in the x-axis and the % daily move on the y-axis. These are normal daily fluctuations.
As an example, SHOP has a market cap of $162B. This means an average day it will move roughly 1%, either direction. A big day is around 3.7%. The point being, SHOP moving -2.5% (which it has moved up since recording to -1.5%)…means that is has not done anything exciting today. In fact, the trend remains up.
I built this tool a while back. I dont often use it simply because I have somewhat memorized the volatility expectations, but maybe it will help you.
