How to Make Money Consistently in Options Trading

How to make money consistently and options trading?  Well that’s easy. Simply profit more than you lose on a consistent basis and net out of profit on a consistent basis!

You see, what people forget or don’t even know about trading is that trading is not investing. Trading actually is very much like a standard retail business. Any standard retail business you go to buy low and sell high making a profit over and over through repeated transactions. And in a standard retail business you have revenues from selling but you also have costs. Costs of involve things such as: the cost of goods sold, rent, utilities, Employees, Insurance etc. etc.

Where novice traders err is that they forget to systematically execute a trading business. They get so caught up in winning and losing that they lose sight of executing a trading system in a businesslike fashion. The desire to win every trade is exactly what holds most novice traders back.  Well, that in combination with trading position sizes that are just way too big relative size of the novices trading account.

You’ve heard of the “Chase for the holy Grail in trading” right?  That’s when a novice trader gets into A hysterical, emotional state of being where they enter in endless quest to find A trading system that gives them 110% winning!  Of course that doesn’t exist. But the pursuit of such contracts so many traders that does traders never end up catching on to trading success, To making money consistently and options trading until they can break that pattern.  And if you really think about it,”Chasing the holy Grail” is either a form of greed or fear or a combination of both. And you’ve heard by now that greed and fear is not succeed in the markets.

Now what doesn’t work in trading is an approach that treats the markets in a fairway. A fairway means that you knowledge that you will have some losses. And then you begin to understand that losing well is the secret to making a lot of money in trading. Once you get rid of greed and fear and start treating the marketplace and a fair way, start treating the marketplace as if you were running a Standard retail business then you enter the position to potentially have enormous success trading the market’s.

Examples:

Exhibit A:  Richard Dennis and the Turtle Traders:  according to one of their students, Russel Sands, in his recognition of the Turtle Trading System, they’re trading system only won 40% of the time.  Did that sink in?  40% winning! That really sucks! And these guys made hundreds of millions of dollars! Their secret? They executed their system and didn’t think twice about it. They knew their system has been proven over time where the revenues can outweigh us the costs.

Exhibit B:  Warren Buffett. Warren discovered overtime that you can’t do everything but you can’t do something.  He finally settled in on a trading system of sorts where he would “buy a business” or part of one by accumulating a number of stock shares (and then eventually started buying entire businesses!) at a discounted value assuming that the business would return back to par and continue to grow in relation to its global business growth.  He look for businesses that could fit his business model for growth and factored in time as his cost of doing business.  For it took a long time for his investments to pan out.

 

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