How this moomoo user learned to navigate the risks of trading 0DTE options

Moomoo’s User Stories series charts the trading journey wins and learnings of members of the moo community. Get an insider look at how users are navigating market challenges, their most used tools on the moomoo platform, and their advice for anyone wanting to start investing.

Moomoo user Daniel Crocker has traded stocks for more than a decade. More recently, Daniel began to trade options, including zero days to expiry (0DTE) options.

“I have been trading stocks for a long time and more recently saw that 0DTE options have become popular.

“I like to day trade. I like to make money daily. The opportunity that 0DTE options give you to make money in a short time frame appealed to me. Of course, you must also understand the risks involved.”

Daniel lives in Mobile, Alabama, and is a father to a 14-year-old boy and a 10-year-old girl. He has worked in the logistics industry for the last 20 years.

“I have been in logistics since I was 22 years old, and I would say this was probably around the time I started getting interested in investing.”

Daniel credits his colleagues at one of his first jobs for inspiring him to take an interest in investing and growing his passive income stream.

“I got into the options side of things in my spare time when looking for ways to exploit the stock market a little better. A lot of my learning was done through YouTube and internet searches.”

Having traded 0DTE options for the past year, Daniel says it has helped him to keep updated on the market.

“If any kind of economic data comes out, you can try to catch the momentum and possibly make some nice profits quickly, but you can also lose money quickly.”

Daniel has had a successful start to the year but recalls times when he wasn’t as fortunate.

“Around this time last year, I was expecting some inflation data coming out in my favor. I was implementing stop-loss strategies on my own, without relying on support from any investing platform or tool. Unfortunately, the market dropped fast and I was hit with a big loss.

“So, the best strategy for me is to keep a tight stop loss and just try to limit my losses and capture my profits.

“Using moomoo allows me to do all the technical analysis I want; thanks to the tools they have. I use moving averages, Bollinger Bands, RSI, all that. It really helps you to make more informed decisions on your trades.”

Daniel is a relatively new moomoo user, having joined the community six months ago.

“For me, personally, the interface on moomoo is more friendly than other platforms I have used in the past.

“In terms of referrals, moomoo seemed to provide more than many other brokerage platforms I have used. It was a good motivator to get started using the platform.”

Daniel says he is contemplating making a career out of day trading. He has been trading full-time since last summer and says he is seeing how it plays out before committing to a long-term.

“I probably dedicate several hours a day to it. I've been fortunate in real estate. In recent years, I've made some money.

“Right now, I have an opportunity to do it. I'm pretty much pursuing this as my income. My goal is to be a successful day trader, which most are not. But I think if you manage your risk, I certainly think it's possible.”

To manage the stress that can sometimes come with day trading and trading 0DTE options, Daniel says he has learned to not get emotionally tied up.

“Your wins are great, but your losses are bad, so you don't feel great either because it is your money. Using technical analysis helps a lot, and having a tight stop-loss so you don't lose that bad helps mitigate the stress and risk.

“Managing risk is the key to 0DTE options trading.”