What is psychology needed for make living from trading ??

Discussion in 'Psychology' started by nell, Sep 20, 2008.

  1. Good point. I believe this to be true also. Trader B seem to have capped the upside and believes his/her risk management is sound and also believes he/she has a formula to systematically take money out of the markets. What happens to such systems? Anyway, I believe Trader A is the one to bet on for the long-run even with the higher volatility of returns.
     
    #21     Sep 23, 2008
  2. ammo

    ammo

    first of all,when you have a strangle,straddle,condor ,iron condor,box and a lot of other strategies,you can always lift a leg temporarily and put it back out,oex short 545 /50 call sprd, $3 and short the 535/30 put sprd $2,you could be long the 615/20 call sprd for 35 cents and the 470/75 put sprd for 35 cents,now if the market moves in one direction for 300 points your going to lose less or make more, thats the easy way. Another way is .... If you watch the uvol/dvol comparison chart and the uvol is flat lining and the dvol is going steadily up,you can see from this pattern that we are in a down TREND day,you could buy a few of your 535 short puts back and put it back out at the end of the day ,or cover your long put and close out your call sprd
     
    #22     Sep 24, 2008
  3. nell

    nell

    the things about naked options is there's maximum risk. and minimum ROI.

    I still don't get it, why people just selling naked options while they can do vertical spread and give lots of benefit for that ?

    Do you know the comparison ? please let me know as i want to know too how this naked options works

    thx
     
    #23     Sep 24, 2008
  4. eagle

    eagle

    You discovered it some day in the past by yourself, right. :D

     
    #24     Sep 24, 2008