Hi dagnyt, It wasn't a suggestion. I was commenting on human nature. I was hoping OP would respond. I imagine that many, if not most, neophyte traders who experience initial success get greedy and raise the stakes. I know two traders who did this and gave it all back (of course). Perhaps the OP has more trading experience than 6mos. with options? I never had beginner's luck. It was a good thing, I suppose.
Yes, slowly step by step, each step may take only several years, if not ten. You will be safe and fine, being a serviving trader!
I agree completely and wrote about this topic: http://blog.mdwoptions.com/options_for_rookies/2008/08/premature-celebration.html Mark
"What if the success were due to the fact that he bought only calls in a rising market? What would that tell you about the viability of the system? A lot more information is needed before the bets are increased. And the fact that he admits that controlling emotions is so difficult - larger bets may induce panic. There's plenty of time to up the ante. Perhaps after a few years of up and down markets, volatile and non-volatile markets. If he does well in all of them, then an argument to up the ante would be reasonable" To answer a few of the question i saw and thanks again I feel I got some nice insight from many of you. I completely agree with the above statement right now. -As far as what brokerage i use- I currently use ameritrade (also have stocks with them) had etrade but did'nt like the fees, I'm thinking of switching to wells fargo or BOA's brokerage b/c if have 25k in bank get 30 free trades a month and it says including options but need more info on how it works - I have been buying "cheap" otm calls now and my most succesful were when dow was still in 6000's so I attribute much of my luck/success with the bull market we have been in over the past 4-5 months and stock being oversold. I'm likely going to sit on the sidelines for the next 3-4 weeks (unless it really goes down-fast-back to mid 7's), then start going back in as I did previous. - I doubt I will up the ante anytime soon as many of you are right when I put more then 2-300 on a call my emotions change and I am worried about not losing that money and it sways my judgement, (pick-seemingly safer options), and those are my losers thus far ie. PFE. - My approach is very much macro when the market is going up or people are jumping out of windows start buying the otm calls, then sit on sideline for the sideways market (don't have the skill for the straddles, strangles that market requires), and I suppose if the market really starts tanking buy OTM puts, especialy on companies I hate like AIG (too pricey for me now) or AAPL- just personally don't get that company but amd staying away- Anyway thanks for the replies and does anyone now a good way to search for options likes the ones I'm looking for the screenrers I'm aware of dont work that way
There's no such thing as trading without emotion unless you're valiumed up to the gills When the sh*t hits the fan and the surge in adrenalin jump starts your brain into action (what do I need to do to protect my position?) rather than stoking your fear (OMG, OMG why did I do this?), you'll know that emotion isn't an issue anymore. Confidence in your strategy and in your ability to react to a adverse circumstances (add, subtract, adjust, roll, close) is the reason to start upping the ante but never more risk than one can handle.
30 free trades is nice but make sure that you're getting a reliable platform and good executions before grabbing at that carrot. And if there's a possibiility that you might do more than 30 trades. make sure that their rates are competitive and that the 30 free isn't a loss leader sucking you in
Exactly, imo, without a complete and risk-adverse system tested and proven today, a serious trader might never have it anytime in the future.