Alright guys/gals, I need to meet some success stories. I have been learning options trading over the past year and haven't found my system or process without blowing things up. I already blew up my portfolio when I traded leveraged ETF's. Can anyone give me some similar experiences that they turned it around? I need your help if you are out there.... please! Thank you all! Investo
I started back in 70s with stocks, and 80s started in commodities-took me longest in commodities to do well enough, it wasn't until four years ago my best buddy asked me to create option systems for him. I have used options as hedges most of my trading life and just little covered calls/puts. So I started trying to figure them out using the "Greeks" and sounded like greek to me, took me 2.5 years to make a viable system just using options, tested them for several months, and now buddy is automating it. It is more directional and just has lite Greeks in it-don't want to buy prem or sell discount options, so basically system I made, if I get buy signal in a stock, do put credit spreads, have rules to take profit, rules of what to do when wrong, just usually criteria for Trading Plan. I didn't do what most newer traders do and start trading, that like jumping off cliff and think you going to fly. You have to do much back testing first, and you can just use stocks, make sure you sell prem and when you buy lower put, the prem is not more in percentages than what you sold. Good luck.
do some serious risk control and some good research. If you trade options, make sure the strategy 's not too complicated as the risk control is more tricky on complicated strategy. My thoughts.
1 year? You haven't even begun to begin. Just looking for an option strategy won't do you any good if you can't analyze and read the underlying. You may want to start by learning to read the price movement of stocks. Then once having mastered that over a number of years, you will be armed to trade options outright without the need for complicated strategies. Then you can write your own success story!
If you really want to do it, first and foremost, you need to read up on options and understand how they are priced, the various greeks and how they affect the prices of options..... As a fellow newbie, my advice is like some of the other posters said: Don't be fancy and keep it simple. The only way I found success was traded directional. Fancy multiple combinations and volatility trades are for the pros here at ET. Us, we can make money if we are able to pick the underlying and guess the directional of the underlying. And, since 2009, it has been a one way bull market so any bullish bets would net you a profit if you keep at it long enough. However, who knows how long this bull market will last so I am starting to study other strategies for the inevitable downturn. Good luck.