The "haves" and the have "N.O.T.S." (Novice Options Traders)

Discussion in 'Options' started by ElectricSavant, Apr 9, 2006.

  1. I do not understand Options. Being the strategic currency trader that I am, many have told me perhaps that Options, would be where my aptitude could be applied.

    I concentrate on money management in everything that I trade and money management is a big portion of my trading.

    Sure you need an edge....but without money management you could be wasting a lot of time. The uses for money management seem to be most effective in the ranking of your trade probabilities trade by trade and assigning a money management value according to your quality of current set-up. Some "iffy" signals simply get less money to trade. Canned Kelly...FRM....percentage approaches simply do not work, no matter what your winrate is. You gotta' look at the set-up.

    I have set up a TOS IRA account and subscribed to some advisories. I have two advisories through TOS's autotrade programs. Optionsmart ( I have subscribed for two years) and Crowder Investments (a new one).

    I cannot post the trades as they happen as they are not my trades and I subscribe to get the signals.

    But I will post my spreadsheet after the fact to show that there can be a way to trade options and add them to your diversification without having to understand them. This is how I take baby-steps to grow in Options trading. Hey if someone else can make the money in options for me...what do I care. I have my hand in the money mangement part....and that is trading too!

    I hope this might be helpful to the many "have N.O.T.S." readers here. Do not be afraid to diversify and find a way :)

    G.O.T. to ya' (Good Options Trading) to you...

    Michael B.
  2. Options are just leverage 5-8x

    With high commissions /spread:)

    Trade them the same way you trade a stock.
  3. Ok thanks coolweb...I didn't realize that...ok i will end this thread now....and trade on my own...cya

  4. lundy


    There is alot more to options than that.

    Read a book, or take a course. I took Market Compass' option course.
  5. cnms2


    Are you joking, or you're misinformed ... ?
  6. mahras2


    I am confused as well at that remark.

    Good luck ES. I have been trading some hit/miss binaries through oanda with mediocre results (slightly positive still) for the past week. Sticking with hit/miss for now until I understand the analytics of the other options in a better manner.

    I will be interested in seeing how you trade. Good luck.
  7. Well I only do the MM side of the trade part....Some day when I can understand Riskarbs....Mavs...zhiv's and others who post in here, I will probably spend more time here in the options forum.

    Meanwhile I let others call the trades....I have another project starting this year with a collegue in a managed account in options trading...but I cannot discuss that without his permission.....and I do not think he wants to. You do not realize what an opportunity I have!

    I need diversification and currently spend most of my time with this new scalping system in Currencies which I make 10% a month on...yes I know ....Scalping!!!! (I am actually in a twin-pair trade now and have to watch every pip to feel the cycle)

    and coolweb....just ignore me......

    Michael B.

  8. catchy title.
  9. Well lets get the options forum alive!

    Trading is my life's work and this Options forum should be FILLED with contributors!!!

    Good Trading to you :) May I ask the meaning of your handle ?

  10. once a 'fra10' trader, now a consistently lucky trader (;)
    plus we're all 'fra's here ...
    #10     Apr 10, 2006