which option advisory is best for new trader
- Thread starter jesse1
- Start date
It reminds of me a full-page ad in the back of Investors Business Daily about this guy Don Fishback and his ODDS system.
The ad was extremely convincing, until you order his system and discover his (risky) "technique" was simply based on iron condors, nothing more.
Not sure if the ad is still running.
Chuck Norris style would require one kick only.
Risk/reward is not the problem. By doing bad risk/reward you increase your probability of success. By improving the risk/reward you decrease the probability of success.
http://steadyoptions.com/articles/post/general/risk-reward-or-probability-of-success-r91
The problem is that with weekly options, you cannot control your risk due to high negative gamma. So you make your 5% 9 out of 10 times, but when you lose, you lose big time. When you trade 5-7 weeks to expiration, you can still have 90% probability trades, but you can limit your loss to a reasonable amount when you lose.
Yes you are right, even though this is basic options stuff.
However, traders should aim for at least at 1 to 1 risk/reward ratio, otherwise it is not worth it (just my personal opinion).
By the way, who remember Bernie Schaeffer and his lousy options advisory service (he was all over the net in the 90's)?
No because on the internet anyone can claim whatever return the want. An audited return is a much better starting point before you trust someone with your money.
Then your system is not that good. If your system is good it will prove it with audited returns because there is an unlimited number of money you can make and manage, much more than 120k. The best professional option traders manage more than 50 millions they don't bother with newsletters.
It seems that most people do not value when someone offers audited returns as a huge plus because when it comes to the market the vast majority of people want to hear that anyone can do it, it won't take much time and not much more than $100 for a financial guru to share the holy grail.
You said : " 100 subscribers? That's 120K a year doing almost nothing. "
You are 100% correct 120K to do almost nothing. You should sign up, what are you waiting for ?
There are a total of maybe 20 professional money manager with audited returns and less than 1/2 of them is able to make money consistently. On the other hand there are 100s of option advisory services claiming to make money and selling you something.
Doesn't that make you think for a moment ?
Again, an "audited" return does not prove a thing, you are extremely naive if you believe otherwise.