Commodities trading

[volatilitypimp]

Yeah, I guess I'm selling options trading as a worthwhile endeavor. Contrary to your scare tactics that options are very risky and hardly anyone can possibly profit from them in the long run.

With the proper risk controls in place, writing premium is very lucrative. I think you are right that most option buyers are saps(fighting time decay is mostly a losing battle).

I think it's all a matter of perspective, I feel options are much easier to trade than futures or equities. Sure the jargon we use takes time to develop, but once you have it, you basically have a license to print money! 99% of trading options is good risk management.

Just doing my part to help liquidity in the option marketplace.

 

[Jayford]

Guys,

Listen to your audience.


They do not have the cash to hedge positions as you do.

Trading futures?

They can start with a few grand down.

Hedging stock positions? Takes a bit more.

And please don't tell the newbies it can't be done. Almost EVERY famous trader started with nothing.

 

[JangoFolly]

Quote from Bigmak:

Yes, there is an option to setup a paper trading account in the account manager, but I just wasn't sure if it would work the same with the Futures...the Mini Crude to be specific.

I guess I'll have to give interactive brokers a shout.

I just checked in a papertrading account I had set up, and QM is supported in the simulator.

 

[Buy1Sell2]

Quote from Jayford:

Guys,

Listen to your audience.


They do not have the cash to hedge positions as you do.

Trading futures?

They can start with a few grand down.

Hedging stock positions? Takes a bit more.

And please don't tell the newbies it can't be done. Almost EVERY famous trader started with nothing.

I believe options selling is the best bet for a new trader with a small amount of capital--he sells far OTM and builds his grubstake while he is learning directional analysis. --or uses the premium to buy the hedge at closer to ATM. This is far and away a better way to get your feet wet in the market when you have no idea which way the market will go as a newbie. Selling options is much much safer than outright futures and a newbie hanging on to his position.