If Options Are Easy To Trade Why Do So Many Lose So Much Money And Burn Out?
Most option traders are like you and I, average people doing business on the stock market.
But what separates the professional option traders from the beginners is that the professionals keep it simple whilst the beginners are still finding their way and often are overcome by their emotions....or greed that usually results in them making losses.
It's true that if one could predict the directional movement of the markets on a regular basis then this person would be extremely wealthy.
What many traders don't realize though is that to make a great living with option trading you don't have to predict the direction of the move, something that is akin to gambling at the best of times.
Many professional option traders make a huge income by forecasting the "size" of an options price movement whether up or down or even if it is trading in a range by using volatility and probability analysis .
Now this is why many people get scared and run away at the mention of Volatility and Probability Analysis to trade in options.
In the years past you would have to have the great mathematician Archimedes to help you calculate volatility and probability, it could be the reason why only a select few were making money trading options.
But not now with powerful software that you can purchase from various online traders you only have to input the 20 days price history of an option you want to trade in and then "voila"! In an instant you have your answer of the likely movement of that options price.
You can also use standard deviation to calculate probability and with a quick glance you can simply look at a simple chart (no not one of those complicated ones, but the shaded area under a bell curve) and you can spot a 95% winner in an instant!
Yes this method is the method that many successful professional option traders have been using for years to make huge profits from trading in options.
In fact many successful global large financial institutions that trade in options use this very same method.
With basic knowledge in option trading and a relatively inexpensive piece of software you can now trade and profit like the professional option trader.
What is more, all you have to do is simply enter the 20 day historical prices of an option you want to trade in and the probability is given immediately.
You can even work out likely "scenarios" by using "what if" a price was such and such at an given time to work out your strategy.
Volatility and probability formulas are not simple formulas, you could do them on a calculator or in a spreadsheet like excel but for a small investment why bother working like an Elephant when you can sit down and concentrate on trading.
But what separates the professional option traders from the beginners is that the professionals keep it simple whilst the beginners are still finding their way and often are overcome by their emotions....or greed that usually results in them making losses.
It's true that if one could predict the directional movement of the markets on a regular basis then this person would be extremely wealthy.
What many traders don't realize though is that to make a great living with option trading you don't have to predict the direction of the move, something that is akin to gambling at the best of times.
Many professional option traders make a huge income by forecasting the "size" of an options price movement whether up or down or even if it is trading in a range by using volatility and probability analysis .
Now this is why many people get scared and run away at the mention of Volatility and Probability Analysis to trade in options.
In the years past you would have to have the great mathematician Archimedes to help you calculate volatility and probability, it could be the reason why only a select few were making money trading options.
But not now with powerful software that you can purchase from various online traders you only have to input the 20 days price history of an option you want to trade in and then "voila"! In an instant you have your answer of the likely movement of that options price.
You can also use standard deviation to calculate probability and with a quick glance you can simply look at a simple chart (no not one of those complicated ones, but the shaded area under a bell curve) and you can spot a 95% winner in an instant!
Yes this method is the method that many successful professional option traders have been using for years to make huge profits from trading in options.
In fact many successful global large financial institutions that trade in options use this very same method.
With basic knowledge in option trading and a relatively inexpensive piece of software you can now trade and profit like the professional option trader.
What is more, all you have to do is simply enter the 20 day historical prices of an option you want to trade in and the probability is given immediately.
You can even work out likely "scenarios" by using "what if" a price was such and such at an given time to work out your strategy.
Volatility and probability formulas are not simple formulas, you could do them on a calculator or in a spreadsheet like excel but for a small investment why bother working like an Elephant when you can sit down and concentrate on trading.
Most option traders are like you and I, average people doing business on the stock market.
But what separates the professional option traders from the beginners is that the professionals keep it simple whilst the beginners are still finding their way and often are overcome by their emotions....or greed that usually results in them making losses.
It's true that if one could predict the directional movement of the markets on a regular basis then this person would be extremely wealthy.
What many traders don't realize though is that to make a great living with option trading you don't have to predict the direction of the move, something that is akin to gambling at the best of times.
Many professional option traders make a huge income by forecasting the "size" of an options price movement whether up or down or even if it is trading in a range by using volatility and probability analysis .
Now this is why many people get scared and run away at the mention of Volatility and Probability Analysis to trade in options.
In the years past you would have to have the great mathematician Archimedes to help you calculate volatility and probability, it could be the reason why only a select few were making money trading options.
But not now with powerful software that you can purchase from various online traders you only have to input the 20 days price history of an option you want to trade in and then "voila"! In an instant you have your answer of the likely movement of that options price.
You can also use standard deviation to calculate probability and with a quick glance you can simply look at a simple chart (no not one of those complicated ones, but the shaded area under a bell curve) and you can spot a 95% winner in an instant!
Yes this method is the method that many successful professional option traders have been using for years to make huge profits from trading in options.
In fact many successful global large financial institutions that trade in options use this very same method.
With basic knowledge in option trading and a relatively inexpensive piece of software you can now trade and profit like the professional option trader.
What is more, all you have to do is simply enter the 20 day historical prices of an option you want to trade in and the probability is given immediately.
You can even work out likely "scenarios" by using "what if" a price was such and such at an given time to work out your strategy.
Volatility and probability formulas are not simple formulas, you could do them on a calculator or in a spreadsheet like excel but for a small investment why bother working like an Elephant when you can sit down and concentrate on trading.
But what separates the professional option traders from the beginners is that the professionals keep it simple whilst the beginners are still finding their way and often are overcome by their emotions....or greed that usually results in them making losses.
It's true that if one could predict the directional movement of the markets on a regular basis then this person would be extremely wealthy.
What many traders don't realize though is that to make a great living with option trading you don't have to predict the direction of the move, something that is akin to gambling at the best of times.
Many professional option traders make a huge income by forecasting the "size" of an options price movement whether up or down or even if it is trading in a range by using volatility and probability analysis .
Now this is why many people get scared and run away at the mention of Volatility and Probability Analysis to trade in options.
In the years past you would have to have the great mathematician Archimedes to help you calculate volatility and probability, it could be the reason why only a select few were making money trading options.
But not now with powerful software that you can purchase from various online traders you only have to input the 20 days price history of an option you want to trade in and then "voila"! In an instant you have your answer of the likely movement of that options price.
You can also use standard deviation to calculate probability and with a quick glance you can simply look at a simple chart (no not one of those complicated ones, but the shaded area under a bell curve) and you can spot a 95% winner in an instant!
Yes this method is the method that many successful professional option traders have been using for years to make huge profits from trading in options.
In fact many successful global large financial institutions that trade in options use this very same method.
With basic knowledge in option trading and a relatively inexpensive piece of software you can now trade and profit like the professional option trader.
What is more, all you have to do is simply enter the 20 day historical prices of an option you want to trade in and the probability is given immediately.
You can even work out likely "scenarios" by using "what if" a price was such and such at an given time to work out your strategy.
Volatility and probability formulas are not simple formulas, you could do them on a calculator or in a spreadsheet like excel but for a small investment why bother working like an Elephant when you can sit down and concentrate on trading.
posted by zzzzzzzzzzz at
2:48 AM
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