you learn how to write and buy options.. and that is not enough

Discussion in 'Options' started by thkang, Jun 17, 2011.

  1. thkang


    What I recently have on my mind is that learning how to be a successful option trader and learning how to 'make money' is very different. Like, you can be right for 99% times of your trades, and somehow the loss from the other 1% can give you a margin call. That's a ridiculously simple example, there would be a lot more complications beyond that.

    Any opinions on this? I'm thinking of conversing with a poker player and asking him questions like when should I raise, and by how much.
  2. rmorse

    rmorse ET Sponsor

    The word "successful" will have a very different definition from everyone here. If your trading as a business, [successful option trader]=[make money] If you lose money, how can you consider it successful?

    To me, P & L for the risk level you took is all that matters. If you make a lot of money doing a lot of "gambling" over a short period of time, it will come back and overwhelm you. If you grind out profits with consistent money making trades, you have a profitable business. Then you will be successful.
  3. xyannix