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treat trading like a business, not like a hobby

i used to work as a market maker in equity derivatives for a broker. left there 6 years ago and have traded my own money since. the derivatives give you leverage and risk control if you know how to use them properly.

if 95% of traders fail. then it should be hard to get a job trading. i agree its more on who you know than what you know....i myself just got lucky and was delivering cheques for a broker when asked to switch jobs...right time/right place. a lot of places just play the numbers game and hire...

what is a flow trader....is that actually an operator putting in peoples orders, or a a prop trader that just front runs orders? avoid either if you can, they may both hinder any trading abilities, if they cloud ideas about risk and abilities to trade. I would suggest derivatives (i'm biased...

as per above....read, read, read. for fun read Market Wizards and Reminiscences of a stock operator. if you dont feel interested after that give up. if this has whetted the appetite read this forum some more books and ideas.

options are highly correlated. the amount an option price will change by compared to other options though is determined by many things. for a vertical spread in the same month. the most obvious determinant on the price will be the underlying. how much an option changes by is given by all the...

yep it depends on if you are an investor and looking for yield, and hence a long term investor regardless, or a trader. when i was a market maker a big client always used to be amazed that he used to sell us options and make money out it and we used to buy those options and also make money from...

its not free.....it is worth it though and this is not a plug....but http://www.hoadley.net/options/options.htm very good and detailed. easily compatabile for excel and has more than one option model. Really worth while getting if you are seriously interested in options.

major difference is determined by whether or not the option is an American style...and can be exercised at any time, or a European style....and can only be exercised at expiry. Some exchanges have both...even down to both in the same month and similar strikes so be aware of which you are...

probably a first for my reading at this website. i agree with everything everyone has said.

take into consideration that if you are buying an ITM option to reduce your risk, someone is taking on that extra risk. for that they will charge you. i agree sometimes the spread gets a little too large or inconsistent for some stocks. they only way around this is to factor that into what you...

as a sugestion to anybody posting option questions. i have traded them for years (in equities) as both a position trader and a market maker so i have a handle on both sides of the equation and would like to help. but the best thing when posting questions would be to also give the expiry months...

i agree...google put call parity and do a lot of research. the best thing to remember when trying to learn stuff about options is that once you hedge an option, or use options offset against the underlying your risk dramatically changes. Once you start hedging using the underlying your calls...

the reason why Optiva in particular want you do take these tests is because of the nature of thier business model. they want people who can rope learn to do things very quickly, and given that trading involves numbers....it becomes simple maths questions. Optiva are a high volume numbers options...

makes for an interesting insight into how scalable a trading style actually is. i use leverage on my equity account of about 4-5 times, using most futures and forex gives you leverage of about 20 times. If you are using a trading style / method / strategy that is consistently profitable with...

as per above....not sticking to the plan. jesse livermore - " a loss never bothers me after i take it. i forget it overnight. but being wrong - not taking the loss - that is what does the damage to the pocketbook and to the soul" i think you can equally apply this to taking profits prior to...

i have traded sucessfully for 14 years. i still wonder if its based on luck, skill or whatever, thats the reason why physcology is such an important thing to master in this profession. You are right in that some days you think that its too good to be true, as there will be other days when you...

i think the CIA tried a mock simulation using a similar thing. they found it too scary and controversial. Plus its probably too enticing for some people, because what you would do is entice people to do pretty ordinary things for money. it would not be hard to manipulate a market like that if...

i used to work for a broking firm as a principal trader (not as a broker or as an order operater for others) for 7 years. we were paid a salary and then a percentage of what we made. it was a great way to learn. using someone elses money, equipment and processes. you knew if it all went pear...

it seems the best traders in the world return approx 30% per annum year in year out, on average (top of the head figures). not counting all the ones who go bust. unless you use more leverage, or take more risk. Use this as a guide.