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Wealthy Option Traders
- Thread starter CandleStick77
- Start date
What some people think is "wealthy" others have in the cracks of their couch. The word "wealthy" means nothing without qualification, sort of moot, like this thread.
Itâs the internet, which means its best to assume that everyone is rich, wealthy, wise and good looking.
My only question is how can there be more Ferrari's owned on internet capital market web boards and chat rooms than the number of Ferrari's ever produced?
Itâs the internet, which means its best to assume that everyone is rich, wealthy, wise and good looking.
My only question is how can there be more Ferrari's owned on internet capital market web boards and chat rooms than the number of Ferrari's ever produced?
Quote from CandleStick77:
I am posting this thread to find out what option traders here have made alot of money. I would like to keep the negative people out of the thread and here what the successful people have to say. If your out there and you have been making consistent high profit gains. Please post
Let me tell you a little story that is a variation of a basic story that is told in most business schools:
Let's say you have a trader that somehow sells ATM puts 10 times in a row. Lets say they are 1 year european options. There is only 2 outcomes possible in such a case: either its in the money or its out of the money.
If he starts with 5000$ and doubles his money if he ends up OTM, looses it all if he is ITM. He has 0,1% chance of succeeding 10 times in a row.
Now take 10000 traders that do this, there are 9,77 of them that will succeed 10 times in a row, leaving them with 5 120 000$. Then they start "trading conservatively". Would you call them good traders???
Geico makes money selling insurance. Yes they have the payouts for claim but they make profits.
Treat Options trading with respect and like a proper Actuary type business and you can make a living from it.
If you treat it as a way to speculate into instant riches you are asking for trouble.
Treat Options trading with respect and like a proper Actuary type business and you can make a living from it.
If you treat it as a way to speculate into instant riches you are asking for trouble.
Quote from heiasafari:
Let me tell you a little story that is a variation of a basic story that is told in most business schools:
Let's say you have a trader that somehow sells ATM puts 10 times in a row. Lets say they are 1 year european options. There is only 2 outcomes possible in such a case: either its in the money or its out of the money.
If he starts with 5000$ and doubles his money if he ends up OTM, looses it all if he is ITM. He has 0,1% chance of succeeding 10 times in a row.
Now take 10000 traders that do this, there are 9,77 of them that will succeed 10 times in a row, leaving them with 5 120 000$. Then they start "trading conservatively". Would you call them good traders???
so it's good to become a statistic!
Grinding out consistent profits (of any size) and being risk averse precisely describes successful traders.Quote from lescor:
Disagree completely. Without exception, all the successful traders I know grind out consistent profits, are extremely risk averse and never swing for home runs. They get rich as a consequence of this attitude.
+1
Quote from lescor:
Disagree completely. Without exception, all the successful traders I know grind out consistent profits, are extremely risk averse and never swing for home runs. They get rich as a consequence of this attitude.
But this thread is about option traders, maybe they're different...
no different and you're right.
Quote from xflat2186:
What some people think is "wealthy" others have in the cracks of their couch. The word "wealthy" means nothing without qualification, sort of moot, like this thread.
It�s the internet, which means its best to assume that everyone is rich, wealthy, wise and good looking.
My only question is how can there be more Ferrari's owned on internet capital market web boards and chat rooms than the number of Ferrari's ever produced?
HA! Exactly.