I'm a rubbish trader but made about 10% since Feb(my trading year starts then). 2017 sucked-no volatility and the 2 occasions I should have maxed out profits I was busy doing other stuff- like buying furniture. I'm not allowed to publish my website here, but to date 90 trades-one a week and about 4 losers- 3 tiny, one not so big. This week I bought a call spread for 9.5 and sold it for 17 the next day. Sometimes I see short term gains but mostly I have a few monthly strategies. Iron condors died some years ago- condoroptions I think can confirm this (Jared Woodard). Vol has been rubbish- but Feb was peachy for me- those profits actually fell into last year, but the market is such a farce. (QE-wait until they take that puppy away)It will get wiped out at some point which is when those of us positioned for a 6-10% drop in a month make serious coin. I trade about 1/4 of my margin, only trade FTSE index options (equity options are a joke in the UK). One-three monthly trades suits me fine but I have struggled to find trades in the last few years. I think it was 2014 that I made over 40%. Anyway I love options and compared to directional trades, you'd be nuts to try anything else. If you are a lucky so and so with futures, why not quadruple your profits with options? In addition I know only one or two forex people who make money, but with options you can have a modest account and make a living without the gut wrenching stops being hit every day-why do they DO that?
How do successful option traders do it?
- Thread starter Johnmaine
- Start date
Windlesham1,
Several questions for you:
1. Sounds like you don't like to trade simple directional options. Why?
2. I gather you trade spreads? Do you do credit or debit? A spread is still directional? If so you still need to get the direction correct? Then it begs the question if you are good at direction, why not just buy or sell options?
3. What is the best combination options for volatility trade in your opinion?
Thanks.
Several questions for you:
1. Sounds like you don't like to trade simple directional options. Why?
2. I gather you trade spreads? Do you do credit or debit? A spread is still directional? If so you still need to get the direction correct? Then it begs the question if you are good at direction, why not just buy or sell options?
3. What is the best combination options for volatility trade in your opinion?
Thanks.
I'm a former option market maker (NYSE ARCA and CBOE), a former hedge fund manager (stock + options) and former head of algorithmic trading (options).
There are a lot of ways successful traders maintain that success. It is certainly not every trade, nor every day, nor even every week or month. But yes, on the floor, the expectation was profits 7 out of 8 weeks, 5 out of 6 months, 9 out of 10 years (you get the idea).
The real key is not what we did on the floor, the real key is figuring out how you can do it. We all, naturally, have a little bias, or if you prefer, a cognitive dissonance. We also naturally have preferences, like directional trading, or volatility trading, or short-term (one-day) trading, or seven day trading, or, whatever.
Find that place where you know yourself -- you know what you prefer to trade and you know where your cognitive dissonance is. Then you can use a system to create a plan, then trade that plan. That's how we did it on the floor, and most of us were pretty different in our approach.
I co-founded a company with one of the more famous and accomplished finance people around, James Kaplan, called Capital Market Laboratories.
Our goal was to break the information asymmetry between the top 0.1% and the rest. Once that information asymmetry is equalized, you can be successful.
This is what we created for option traders and what I use several times a week.
Video is below and then more info on this page: http://bit.ly/elite_options
There are a lot of ways successful traders maintain that success. It is certainly not every trade, nor every day, nor even every week or month. But yes, on the floor, the expectation was profits 7 out of 8 weeks, 5 out of 6 months, 9 out of 10 years (you get the idea).
The real key is not what we did on the floor, the real key is figuring out how you can do it. We all, naturally, have a little bias, or if you prefer, a cognitive dissonance. We also naturally have preferences, like directional trading, or volatility trading, or short-term (one-day) trading, or seven day trading, or, whatever.
Find that place where you know yourself -- you know what you prefer to trade and you know where your cognitive dissonance is. Then you can use a system to create a plan, then trade that plan. That's how we did it on the floor, and most of us were pretty different in our approach.
I co-founded a company with one of the more famous and accomplished finance people around, James Kaplan, called Capital Market Laboratories.
Our goal was to break the information asymmetry between the top 0.1% and the rest. Once that information asymmetry is equalized, you can be successful.
This is what we created for option traders and what I use several times a week.
Video is below and then more info on this page: http://bit.ly/elite_options