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options . . . very hard to make money
- Thread starter billyjoerob
- Start date
Quote from atticus:
Nonsense. I am not referring to inside info or clairvoyance. I'll post a position I am taking in SLB at 10am Eastern. A position that will outperform a position in the shares in absolute and risk-adjusted terms.
Two of my kids started school today... anyway, Long the SLB Sep 45/55/65 fly from 6.75. It's not a great position by which to mark against a short at 5.25 (due to neutrality), but will outperform the stock (either long or short) over the next 3 weeks.
Quote from billyjoerob:
"Plenty of people earn a living from the options market. But it's not easy."
Really? Any names? "It's not easy" is a flaw, not a feature.
That's absurd. Where would I get names?
Do you think people write to me tell me how much they make?
I know you can make money using options. But it is not only using 'options' that makes money.
It's your attitude.
Its your ability to manage risk. This is the single most important requirement for being successful. One big loss hurts and those who manage risk skillfully don't allow that to happen. They are prepared for all contingencies.
As a non-believer, you just want to argue. You don't want to take the steps required to learn the skills. Or, it's possible you simply cannot learn those skills? Just as not everyone can become a pro athlete, or opera star, so too, not everyone has the talent to make money trading.
Don't blame options. Blame bad strategy choices, inappropriate positions, poor risk management. Those are the reasons why those 'gamblers' you like to mention lose money.
'It's not easy" means you must work at it. No one is coming to hand money to you. The fact that you don't believe that it's true does not diminish the truthfulness of my statement.
The fact is making money with options is not the difficult part. The part that results in so main failures is the inability to keep the earned money. Once overconfidence sets in, you are doomed.
Mark
thanks
Quote from dagnyt:
That's absurd. Where would I get names?
Do you think people write to me tell me how much they make?
I know you can make money using options. But it is not only using 'options' that makes money.
It's your attitude.
Its your ability to manage risk. This is the single most important requirement for being successful. One big loss hurts and those who manage risk skillfully don't allow that to happen. They are prepared for all contingencies.
As a non-believer, you just want to argue. You don't want to take the steps required to learn the skills. Or, it's possible you simply cannot learn those skills? Just as not everyone can become a pro athlete, or opera star, so too, not everyone has the talent to make money trading.
Don't blame options. Blame bad strategy choices, inappropriate positions, poor risk management. Those are the reasons why those 'gamblers' you like to mention lose money.
'It's not easy" means you must work at it. No one is coming to hand money to you. The fact that you don't believe that it's true does not diminish the truthfulness of my statement.
The fact is making money with options is not the difficult part. The part that results in so main failures is the inability to keep the earned money. Once overconfidence sets in, you are doomed.
Mark
There is however a fundamental problem with options trading: it is a negative sum game. Therefore no matter how hard the overall group of participants learn how to trade them, the majority will lose. I believe that people have to understand this inherent issue in options trading. It cannot be put under the carpet of losing is always due to lack of skill/etc. Also those who only buy premium, and have no edge in underlying direction would likely lose.
Quote from dagnyt:
I know you can make money using options. But it is not only using 'options' that makes money.
It's your attitude.
Its your ability to manage risk. This is the single most important requirement for being successful. One big loss hurts and those who manage risk skillfully don't allow that to happen. They are prepared for all contingencies.
As a non-believer, you just want to argue. You don't want to take the steps required to learn the skills. Or, it's possible you simply cannot learn those skills? Just as not everyone can become a pro athlete, or opera star, so too, not everyone has the talent to make money trading.
Don't blame options. Blame bad strategy choices, inappropriate positions, poor risk management. Those are the reasons why those 'gamblers' you like to mention lose money.
'It's not easy" means you must work at it. No one is coming to hand money to you. The fact that you don't believe that it's true does not diminish the truthfulness of my statement.
The fact is making money with options is not the difficult part. The part that results in so main failures is the inability to keep the earned money. Once overconfidence sets in, you are doomed.
Mark
Apparently the guy below runs not only a CTA program but also Many other services (including joining forces with some brokers) as well! So many sources/streams of income!
Quote from billyjoerob:
Exhibit a:
This guy is very smart and knowledgeable about options . . .
http://www.condoroptions.com/index.php/performance/
However his own funds performance (albeit with a short track record) is not as stellar. Kudos to the manager for being so transparent.
http://www.clinamengroup.com/performance/
Quote from tradingjournals:
There is however a fundamental problem with options trading: it is a negative sum game. Therefore no matter how hard the overall group of participants learn how to trade them, the majority will lose. I believe that people have to understand this inherent issue in options trading. It cannot be put under the carpet of losing is always due to lack of skill/etc. Also those who only buy premium, and have no edge in underlying direction would likely lose.
imho, Partial view - however, Incomplete!