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Hey guys, I've been a trader for roughly 4 months trading 0DTE options on IWM primarly, but sometimes on SPY. I have a small account, at around $1,700 inital investment. I'm at the dilemma where i've lost \~$500 on the account, with my balance sitting at roughly $1,200. I just want some advice. I can hit these 10, 15% days every week or so for like 3 days, build my account up to $1,500 or so, then blow it right back down to $1,100 in a matter of 2 days. I've narrowed down some of my mistakes yet I always find myself breaking them
1. Not setting a clear stop: I rarely set an actual stop loss and always use mental stops in the sense that I close out a position manually at my "stop" (which almost never happens)
a. But, with 0DTE, the volatility of the contracts often allows for a small move to hit a 10, 20% stop loss. So it's either I get stopped or I make a profit off the trade
2. Trading the open: I always have the habit of trading at 9:45 (I use ORB so that's when I get the levels set) and then I trade just off the candlesticks sometimes.
3. Entering too early/Exiting too late: I see my setup forming, not formed, and lotto a couple contracts, and on the off chance it doesn't come to fruition, I blow the position. Same thing when I exit, I see it hit a level and I have like a glimmer of hope it continues upward.
I just want some advice to protect my capital or even let others learn from these mistakes but I want to know for people who were in my situation, how did you get out? Thanks and this is my first post here so I hope to look around and find some advice.