I’ve been trading options for about a decade now, and on my journey to achieve success on the stock market I’ve made myself a lot of friends. Collectively, I’ve probably met a couple hundred other option traders, and the truth is, only about a handful of them were making any money! It makes me wonder; why are there so many people out there investing in the stock market when most investors just end up loosing their capital?
Personally, I think part of the reason is that people get a thrill from the challenge. As a trader myself, I know I enjoy the challenge and doing the research. I like to analyze trades and check probabilities. In my case, working with options and the stock market is usually a lot of fun and the challenge keeps me going. I believe there is always room for improvement.
Creativity is another reason why so many investors stick with options trading, even If they don’t get their desired results. With an open mind, one can come up with an infinite number of option strategies. To me, this makes the world of option trading a never ending frontier, waiting to be explored.
But the question remains; why are there so many option traders out there that do not make money? The most common answer you will hear is that the average option trader doesn’t know how to adjust an option position properly. Although this statement may be partially true, I think there is more to the issue.
Recently I’ve come to realize the real problem. Option traders in general do not fail because of their adjustment strategies. In fact, most experienced option traders are excellent at money management and make very intelligent adjustments to their portfolios. The failure begins at the beginning of the trade. No matter how good of an option trader you are and risk manager, you will most likely never have long-term success trading options unless you learn to construct option trades that are low risk from the beginning. This is the key to becoming a successful option trader year after year.
Through courses from San Jose Options, I’ve learned to construct trades that are safer than anything I had ever seen before, and even though the risk is much lower, the probability and return is very desirable. So if you feel that you are making all the right adjustments on your option trades, but you’re still losing money, then your problem is probably in your trade initiation. It’s so nice to have met yet another options trader along my way. Good Luck!
There are many Option Courses on the market today, but there are not many that teach Low-Risk Option Strategies.