Wealthy Option Traders
- Thread starter CandleStick77
- Start date
Respect your opinion but I think the right things in trading are often those that don't feel so good and are difficult to do.
It doesn't mean you should trade in a careless way but paradoxically I think that those who have the big swings in their equity up and down, in the long run play it the safer way.
I think KINGOFSHORTS has a great response earlier.
If the goal is to get rich quick -- I guess it's possible, but statistically not probable unless backed with data (data exclusive to you or the minority of people)
I know some who define their trading strategy, not on what they will trade, but on percent of assets allocated, risk management, mitigation plans in the event of a move in the wrong direction (assuming a directional play). Google, anti-martingale "R" based money management, or look for Van Tharpes article on "R" based money management.
If the goal is to get rich quick -- I guess it's possible, but statistically not probable unless backed with data (data exclusive to you or the minority of people)
I know some who define their trading strategy, not on what they will trade, but on percent of assets allocated, risk management, mitigation plans in the event of a move in the wrong direction (assuming a directional play). Google, anti-martingale "R" based money management, or look for Van Tharpes article on "R" based money management.
Your questions are the problem, not the responses. They scream "very uninformed newbie"
If someone says they did this, will your next question be, "can you please forward me your method and logic?"
Given this limited information, let us make some assumptions,
1) One needs $100,000 yearly in today's dollars for living expenses
2) A conservative investment with very limited principal risk can yield about 4 percent
3) One starts with $5,000 working capital / principal
Thus, you would need to compound the $5000 to $2,500,000 adjusted for inflation to generate the required $100 k yearly income. If one is able to achieve 5% monthly return consistently, the $5000 can be grown to $2,500,000 adjsuted in 11 years, reinviesting all the proceeds and not adding any new money.
Is this your definition of a wealthy option trader?
I was wondering the same. Is the OP trying to find a mentor, looking for someone to "invest" money with, trying to verify whether it is realistically possible to become wealthy by trading options, or merely trying to find out whether ET is a great place to hang out with wealthy option traders, rather than a bunch of has-been, wannabe and never-were traders.
