I've been playing the trading options game for about a decade now, and I've made a lot of friends along the way. I've met numerous option traders, probably somewhere in the hundreds, all working along side me on this long time endeavor to achieve success on the stock market and the truth is, only a handful were making money. It makes me wonder why there are so many people out there playing this game and investing in the stock market when most of them only lose their capital.
Personally, I think part of the reason is that people get a thrill from the challenge. As a trader myself, I know I enjoy the challenge and doing the research. I like to analyze trades and check probabilities. In my case, working with options and the stock market is usually a lot of fun and the challenge keeps me going. I believe there is always room for improvement.
Creativity is another reason why so many investors stick with options trading, even If they don't get their desired results. With an open mind, one can come up with an infinite number of option strategies. To me, this makes the world of option trading a never ending frontier, waiting to be explored.
But I still wonder. Why are there so many option traders out there that aren't making money? The answer you'll hear the most is that your typical option trader does not know how to properly adjust an option position. This statement is somewhat true, but I think we can dig deeper.
And now for the real problem; Option traders don't normally fail because of their adjustment strategies. In actuality, most experienced option traders are great at money management and make proper adjustments to their portfolios. The down fall begins at the start of a trade. No matter how good of an option trader or risk manager you are, you will probably never have long-term success trading options unless you learn to construct option trades that are low risk from the start. This is the key to becoming a consistently successful option trader.
Through courses from San Jose Options, I've learned to construct trades that are safer than anything I had ever seen before, and even though the risk is much lower, the probability and return is very desirable. So if you feel that you are making all the right adjustments on your option trades, but you're still losing money, then your problem is probably in your trade initiation. It's so nice to have met yet another options trader along my way. Good Luck!
By Donald Scott
About the Author:
There are many Option Courses on the market today, but there are not many that teach Low-Risk Option Strategies.