Options vs Forex

Discussion in 'Options' started by sideburn, Jun 15, 2019.

  1. sideburn

    sideburn

    Are you speaking of trading options AND underlying to accomplish risk-free hedging strategy?
     
    #11     Jun 17, 2019
  2. ironchef

    ironchef

    OK thank you.
     
    #12     Jun 17, 2019
  3. Interesting topic. Please share if you can what type of option hedge is possible
     
    #13     Jun 17, 2019
  4. MKTrader

    MKTrader

    No, not usually. But these are complex trades that are always hedged, sometimes with no downside risk. I don't trade this way myself (huge learning curve to do it right) so I can't give you too many details.
     
    #14     Jun 17, 2019
  5. drmark27

    drmark27

    I think a lot of "complex hedged trades" are deceptive. People love to place "Band Aids" all over the place to make an ugly risk graph look better. In many cases, it's just about kicking the risk down the road (i.e. into a different expiration). None of these are guarantees, some are fraudulent (e.g. "Karen the Supertrader"), and few are systematic. Discretionary trades may be luck more often than they are effective. They are notorious for falling prey to the fallacy of the well-chosen example (i.e. you certainly can't backtest them in large sample size).

    I think the "complex hedges" cost lots of money (even if they are said to be "financed"), have a negative expectancy, and can bleed an account over time.

     
    #15     Jun 19, 2019
    Windlesham1 likes this.
  6. Forex is just guessing random moves of a wiggly line. No brains required-in fact there are some idiots who make money with forex.
    Options can be complicated or simple- like buying a call if you think the underlying is going up.You can posiiton for level up or down market.
    Most algo's in forex lose money or blow up, as you'd expect. Never come across an algo in options though backtesting my strategy has shown it has never lost money, and makes up to 50%. My worst year- made about 2.7% in 2017 -didn't stick with the system. It made 50%. I doubt forex traders could do that over many years
     
    #16     Jun 23, 2019
  7. hensap21

    hensap21

    If u technical forextrading, u will be good to take entry position in option trading. My journal in option thread follow my rules in my technical forex strategy
     
    #17     Jun 23, 2019
  8. ironchef

    ironchef

    I hope you don't mind my two questions:

    1. Why are they idiots if they make money?

    2. Why don't you stick with your "never lost money" system? Why are you not an idiot for not following your own winning system?
     
    #18     Jun 23, 2019
  9. MKTrader

    MKTrader

    1) One problem is that phrases like "making money" are meaningless. Does this mean you're profitable for 1 day? 2 weeks? 4 months? You could make money with a coin-flipping trading system for a pretty long stretch if you're lucky

    2) Yeah, that makes no sense. I guess he got bored printing money with his 0-50% per year "Never Lose Money" options trading system. Hey, that gives me an idea for a book or course... "I made so much money I got bored and stopped trading. After all, how many Lambos or yachts does a guy need? But since I'm such a great guy, I'm revealing everything in my $997 course..."
     
    #19     Jun 24, 2019
  10. Option trading and forex trading are both very risky and a trader needs to be cautious when signing up for an account. Personally, I prefer forex trading since Options is riskier and is so full of scammers as compared to forex trading. All in all, it depends on the individual trader, but you must still do your background research thoroughly
     
    #20     Jun 24, 2019