You know, I’ve been trading options for about 13 years now, and during this long time endeavor to achieve success on the stock market, I’ve made a lot of friends along the way. I’ve met numerous option traders, probably somewhere in the hundreds, and the truth is, there has only been a handful that were making money. So I wonder why there are so many people out there investing in the stock market when most of them only lose their capital.
This is a very interesting topic. I think part of the reason is that people actually enjoy the challenge. As a trader myself I certainly do. I like doing the research. I like to analyze trades. I like to look at probabilities. To me working with options and the stock market is actually a lot of fun, and the fact that it is very challenging, keeps me going. I always feel that I have room to improve.
Another reason why a lot of investors stick with option trading even though they do not find immediate success is because it’s a profession that involves a lot of creativity. There are literally an infinite amount of option strategies that can be created if you have an open mind. This to me makes option trading a never ending world of exploration.
But the question remains. Why are there so many option traders out there that do not make money? The common answer to this question is that your average option trader does not know how to properly adjust an option position. While this statement is somewhat true, I don’t think it’s actually the answer that we are looking for.
Recently I’ve come to realize the real problem. Option traders in general do not fail because of their adjustment strategies. In fact, most experienced option traders are excellent at money management and make very intelligent adjustments to their portfolios. The failure begins at the beginning of the trade. No matter how good of an option trader you are and risk manager, you will most likely never have long-term success trading options unless you learn to construct option trades that are low risk from the beginning. This is the key to becoming a successful option trader year after year.
I’ve recently come to this realization by studying with San Jose Options. Through their course 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 is still very high and the return is as well. So if you feel that you are making all the right adjustments on your option trades, and you are still losing money, then most likely the problem is not in your adjustments. Your trades are set up for failure once they are initiated. Good luck with your option trading, and once again, it’s very nice to have met yet another trader along the way.
Visit San Jose Options for more information on maximizing safety with options.
