Constructing Low-Risk Option Trades
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I've made a lot of friends in my 12 year endeavor to achieve success on the stock market through trading options. I've met hundreds of option traders, and the truth is, only a handful of them were making money. I wonder why there are so many people investing in the stock market when most of them only lose 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. And now for the real problem; Option traders don't normally fail because of their adjustment strategies. In actuality, most experienced option traders are great at money management and make proper adjustments to their portfolios. The down fall begins at the start of a trade. No matter how good of an option trader or risk manager you are, you will probably never have long-term success trading options unless you learn to construct option trades that are low risk from the start. This is the key to becoming a consistently successful option trader. During my studies with San Jose Options, I've learned to construct trades that are much safer than anything I had ever seen before, with much lower risks. I've also learned strategies that, even though they have lower risk, their probability and returns are very high. So if you feel that you are making all the right adjustments on your option trades, but are still loosing money, then more than likely your problem is in your adjustments. Your trades may be set up for failure of the get go. I wish you good luck with your option trading, and once again, it's very nice to have met yet another trader along the road to stock market success.