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Showing content with the highest reputation on 11/01/2014 in all areas

  1. 1 point
    Options trading has many flavors and styles. Using options for leverage is one of them - this is not our style. We aim for steady and consistent gains. Our average return is about 5-6% per trade, and as you can see from our track record, we doing very well over time. You don't have to aim for a double in each trade to do well. I see sales pages all the time that show you 200%+ returns on some cheap options they bought. But what they don’t tell you is that those trades happen once in a while and are not consistent. Maybe they did make 200%+ on a trade, but that doesn’t happen all the time and to set your expectations that high would be very ignorant. They also don't tell you how many 100% losers they have before they hit this homerun. And whoever is telling you that you can get rich with options quickly - just ask him to show you his track record. Again, it's all about probability of success and risk management. And yes, those strategies are scalable. Some hedge funds trade hundreds of millions of dollars. Here is some reading in your free time: http://seekingalpha.com/article/396701-myths-and-misconceptions-of-options-trading http://seekingalpha.com/article/407971-how-to-become-your-own-options-risk-master
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