Learn to Trade Options
Posted by Mark on February 28, 2012 at 10:35 | Last modified: February 28, 2012 10:35What can I do for you?
In my brief (three books) research into “blogology,” I have read multiple times that in order to establish a growing readership, I better be able to answer that question in spades.
Without question, the best thing I could do on a web site dedicated to financial matters is give you money.
No offense intended, but that’s not gonna happen.
Next Best Thing
What I can do is provide some ideas about what to trade or what not to trade in an effort to help you make your own money.
I won’t be an advisory service. I do believe in the mantra “give a man a fish and he’ll eat for a day; teach a man to fish and he’ll eat for a lifetime.” You need to do the trades yourself and you need to find the trades yourself. I suspect at some point you’ll be able to pattern some of that after what you see on this site.
Educate
I do like to teach. While I won’t claim to be an “expert” until I have fulfilled the description seen at http://www.optionfanatic.com/2012/02/24/expert-options-trader/ , I certainly do know enough to teach. I have spent well over $10,000 in books, educational courses, and seminars. I have seen many teaching points reinforced in my live trading. My biggest mistakes have been money-management related, and I can certainly fill up a couple volumes on that topic in the hopes that you can avoid the sort of mistakes that have plagued me.
I should be able to save you in losses at least as much as I have spent on trader education. That would make this well worth a read.
Tags: option trading, trader education | Categories: About Me | Comments (0) | PermalinkSeeking the Mastermind
Posted by Mark on February 25, 2012 at 06:38 | Last modified: March 31, 2012 09:56Accountability is today’s Rule #1.
The concept of a Mastermind Group was discussed in Think and Grow Rich by Napoleon Hill (1937). Hill describes the Group as:
“The coordination of knowledge and effort of two or more people, who work toward a definite purpose, in the spirit of harmony.”
The group owns the agenda and everyone’s participation is essential. Together you brainstorm new possibilities, provide each other with feedback, and create a community of supportive colleagues able to move the group to new heights. Perhaps most importantly, together the group will set up accountability structures that keep you focused and on track.
Mastermind Trading Group
For some time now, I have been interested in working with a Mastermind Group to test and develop trading systems. Bullet points from my resume could include:
- Solid theoretical trading/investing background
- Plentiful insight into the common pitfalls of backtesting
- 4+ years of live option trading experience
- 10+ years of intensive equity analysis
- Full-time availability
I strongly believe that assembly of a few select individuals, each with his/her own set of assets to contribute, could be very effective at developing and objectively testing trading strategies. Members would be able to critically analyze ideas, seek to replicate each other’s work for confirmation, and hold each other to task in an effort to keep the group moving forward.
It’s not necessarily the trading but rather maintaining perspective of the Big Picture that makes this endeavor so challenging.
Tags: mastermind trading group | Categories: Accountability | Comments (0) | PermalinkExpert Options Trader
Posted by Mark on February 24, 2012 at 10:55 | Last modified: February 28, 2012 10:46If an expert options trader is one who makes money consistently over time without large drawdowns then let me tell you right now: I am no expert! I have endured the slow, painful learning curve over the last 4+ years. I have made money consistently most of the time but when I have fallen, I have fallen hard. I hope these have been lessons learned that will never happen again. I will not know, however, until the market gets wild and tests me once more.
One thing I have accomplished in my full-time trading career to date is survival. An oft-quoted statistic is that 80% to 95% of traders end up failing. What kind of traders these are and what time frame they’re trading varies from one citation to another. Nevertheless, I hang my hat on the fact that I’m far away from going bust and being forced to exit the game.
I have studied hard and learned a great deal about the theoretical workings of options. I have traded extensively for years, now, and have learned firsthand about the nature of risk through the school of hard knocks. For my personal trading, I feel this puts me in a solid position to consistently grow my account going forward.
I will reserve the use of “expert” until I can show a track record of consistent growth and short flat times. In the meantime, I invite you to actively read what I have to say in this blog. Correct my mistakes. Challenge debatable points. Introduce new perspectives. I have room to grow and with that, I hope we can all grow together.
Tags: option trading | Categories: About Me | Comments (0) | PermalinkTrue Option Fanatic
Posted by Mark on February 23, 2012 at 14:35 | Last modified: March 15, 2012 11:46Yes it’s true… for the better part of 50-60+ hours most weeks out of the past 4+ years, I pretty much eat, drink, and dream options. I think this is pretty much what one needs to do in order to last as a professional options trader. And “last” does not mean “have success.”
This blog will serve multiple functions, not the least of which is to hold myself accountable. This will become more clear as the content here builds.
In the meantime, let me welcome those of you who have followed me here from previous blogs. I also wish to extend a hearty welcome to any new readers. I hope you take interest in what you read and as always, all comments are both encouraged and desired.
Tags: option trading | Categories: About Me, Accountability | Comments (0) | Permalink