The title of your thread would suggest otherwise . Since you're only 16, I assume you'd have to be trading through a custodial cash (non-margin) account set up by your parents... Am I right in the assumption?
Compared to someone who does this full time, I am all of the things in my title. And yes, to your question. I just trade out of my dad's account. I've created accounts for myself but most companies nowadays require a form of ID to link your BA.
DAY 1: Tuesday, April 27, 2010 Bought 3 NBG 2.5 Puts at (35$ Each) P/L on this trade so far: (-120) Comments: I normally wouldn't buy an OTM put for the next month, but I think Greece will make a larger recovery than expected and didn't want to burn into what I think will be a very modest profit with more premium . I do regret not buying 5 puts and not making them for June. I wanted to preserve more money to put into another idea I have for the coming week(s). The more I look at this the more I hate this trade. I'm thinking NBG won't be down 75 cents in one month. I'll be glad to break even on this one.
With a $1600 account, you should not be losing 120 in one shot. I am not some hot-shot trader, but I subscribe to the idea that the damage should be kept small until stability and consistency comes into the picture.
There's little chance that I will lose all 120, if anything. And I have to wager so much to offset OX comissions.
Try call/put debit spreads. You can play options closer to the money without putting up as much risk. That way if you're right on direction, you'll likely make money, not so much with simple long OTM options. If you're wrong with a debit spread, you'll lose much less than somebody who only went long an ATM call or put. Profits are capped, but who cares. If you're looking for insane profits, save your money by quiting options and buy a lottery ticket instead.
This what I'm looking for, easy predictable profits, no matter how small. Thanks, I'll definitely look into this.
Since you're with optionsxpress, try demoing Xspreads for a few months. BTW, spreads work best with heavily traded options with tight bid/ask spreads. SPY, QQQQ, highly active stocks, etc... Use them on options where the near the money bid/ask prices are no wider apart than a cent or two during the day.