Why choose options trading

misti · Sep 15, 2019

zghorner said:
yes both returns and gains are much higher (from a % of invested capital stand point). but you have to be great at risk management (which im not) because major swings up and down happen faster with options...ive had several go from basically break even to worthless (90%+ loss) in a matter or hours. You also have to be good at entry points because you cant sit on it forever to come back in your favor...clocks tickin with options.

Im going to keep working on it, educating myself while making small options trades...but i can tell you if something doesnt click soon i have to walk away and go back to equities. I am not so much giving advice as i am not qualified to do so...just sharing a noobs perspective that is struggling to make the switch from underlying to options.

As I can see from your post is that you are making short term trading maybe less than a week expiration, when you enter a trade your timing has to be very good to catch the move but besides that do not let the trade expired worthless....Wait no more than 2 hours or less for the movement in your favor ,,,,,,, if this does not happen ,,, get out ,,, because the reason that make you made the trade is no longer valid,,,,, GET OUT even with a small profit or small loss ,,,,, do not let time and price movement be your enemies , this way you can preserve your capital and give you more opportunities for better trades.....this help me out to stay in the markets and made a huge different in my account and emotionally,,,,,,,

zghorner · Sep 16, 2019

misti said:
As I can see from your post is that you are making short term trading maybe less than a week expiration, when you enter a trade your timing has to be very good to catch the move but besides that do not let the trade expired worthless....Wait no more than 2 hours or less for the movement in your favor ,,,,,,, if this does not happen ,,, get out ,,, because the reason that make you made the trade is no longer valid,,,,, GET OUT even with a small profit or small loss ,,,,, do not let time and price movement be your enemies , this way you can preserve your capital and give you more opportunities for better trades.....this help me out to stay in the markets and made a huge different in my account and emotionally,,,,,,,

You are right that i have (so far) only messed with short term options and that is probably one of my biggest mistakes as i am not a good short term trader. As mentioned earlier my entry points are never great and short term day trades turn into week long trades before bearing fruit.

Im sure you've given me good advice but i feel like If i were to follow it I would be getting out of 90% of the positions i enter nearly immediately after i enter them.

misti · Sep 20, 2019

zghorner said:
You are right that i have (so far) only messed with short term options and that is probably one of my biggest mistakes as i am not a good short term trader. As mentioned earlier my entry points are never great and short term day trades turn into week long trades before bearing fruit.

Im sure you've given me good advice but i feel like If i were to follow it I would be getting out of 90% of the positions i enter nearly immediately after i enter them.

The best way to have better entries when you do short term trading is buying only the pullbacks and buying pullbacks at level of support.
You will miss some good trades that don't pullback (very few of them) but at this point where you are is better to miss "some" good trades in exchange for the safest entries...