How to become a more profitable trader

[Kim]

2006 was an interesting year. I had great wins and great losses as well. During the 1st half of 2006, most of my trading was based on predicting where the market was going. This required hard work, real-real hard work vs. what some might say that it’s easy. However, still the rewards weren’t consistent. So I started my search for consistency and started to lower my expectation on returns. I met with my friend Krishna S. whose thinking made me rethink about my way of trading and transformed me into an “income trader”. Starting Sept’06, I have been trading spreads and mostly “market neutral spreads”. I no longer speculate where the market is going and don’t look for making 100% in a jiffy. This doesn't mean one style is better than other; it’s what suits your style best. Contrary to popular belief, Options’ trading is not easy. As Dan Sheriden says, it’s a craft and it takes time. One needs to learn craft, readjust and master it before you start sailing in the sea.

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