How to Trade Options for a Living
Is It Possible To Trade Options For A Living? How Is It Done?
Is it risky?
Any trading is risky. Stock investing is risky. Just use that with options you're more leverage so you incur risk at a faster rate usually. All training is risky. All businesses risky. Anything worth anything in life is risky. And I'll tell you what, the greatest risk of all with the highest losing percentage rate is the "safe", the "sure thing".
In order to trade options you need to learn how options work. Then you need to choose a options trading style in terms of what type of price action you're going to trade. Would be a swing trade? A micro swing trade? Daytrading? Trend trading?
Then after that you need to choose an option strategy. The most popular is to simply by calls and buy puts. You can also use credit and debit spreads. You can also use strangles, straddles, calendar spreads, selling naked options and other complex options combinations.
The Key to Trade Options for a Living is to Have an EXACT Trading Plan That You Can Simply and Automatically Execute in Real Time
Creating a training plan takes much insight, experience and knowledge. But you need one. And you need a good one. Be trading plan can also be called a trading system. The fastest route to having your own trading system that can work for you is to buy one. What you buy one you can then tweak it to meet the style you want.
You also need proper perspective. Many aspiring traders enter the market with the wrong attitude. The correct attitude is to enter trading the markets as if you were starting up your own trading business. When you take a professional business approach your perspective lines up correctly with the marketplace. Therefore you're not trying to chase 100% winning or "Excitement". You are instead looking to buy and sell for a net profit. And that's a big difference in thinking.
In order to trade for a living you must be consistently net out profit on average. Average is the keyword. You cannot force the markets. The markets operate on their own time and will.
But if you are to get in sync with the markets then you can take when the markets are giving and stay out when the markets are taking. So if you can just simply keep taking your trading setups, and those trading set ups have a good probability potential for netting out of profit over wins vs. losses - then you are set!
So if your trading system can consistently net profits over time the rest becomes a game of money management. The professionals look for to find a system that is solid over one that is spectacular. Because they know a solid to trading system can handle a lot more money therefore they look to make a lot of money by applying larger amounts of funds to trade.