Why do people trade in options and lose money ?

This is a discussion on Why do people trade in options and lose money ? within the Futures & Options forums, part of the Markets category; Originally Posted by optionsrules So what is your annual trading performance goal in general? You think that 80% is conservative? ...

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Old Nov 18, 2012, 10:47pm   #76
 
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Re: Why do people trade in options and lose money ?

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Originally Posted by optionsrules View Post
So what is your annual trading performance goal in general?
You think that 80% is conservative? Are you serious?
My annual goals differ each year for a couple of reasons,
1) I never trade a full year
2) The markets and my trading style change

Last year I closed the year about +310 to +320%.
This year until I stopped in the beginning of it I was +120%, in a complete year my goals are +300-600%

Yes, to me +80% PA is conservative but by no means poor trading, as you know that is probably better than a lot of people manage. My latest or newest client that I am mentoring is about +65 in maybe 2 months and he is not even putting his full attention into achieving gains, after starting with a new broker after 2 weeks I am +28% and I can say my first week was a small 5% gainer as I was testing the waters so to speak, being unsure about how they would be to fill me and how I would handle doing adjustments as their platform is second rate.
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Last edited by lloydbee; Nov 18, 2012 at 11:14pm.
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Old Nov 19, 2012, 9:39am   #77
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Re: Why do people trade in options and lose money ?

300% is the best I have ever heard from a trader. I guess you are not trading nondirectional strategies, but directional one, am I right?

But anyway, congrats on your achievements, this is great man
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Old Nov 19, 2012, 12:49pm   #78
 
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Re: Why do people trade in options and lose money ?

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300% is the best I have ever heard from a trader. I guess you are not trading nondirectional strategies, but directional one, am I right?

But anyway, congrats on your achievements, this is great man
I know a couple of guys that make 1000+ but that's a bit too active for me.
I trade using a non-directional approach but you know it's funny that more people don't make good gains but I know so many people that trade Options and their mindset and trading has been corrupted by so called Mentoring companies and they are lucky to make even 20% a year if anything at all.

Good luck with this weeks gains I hope you nail it once again.
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Old Nov 19, 2012, 12:58pm   #79
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Re: Why do people trade in options and lose money ?

What are your trading instruments? I guess you are trading with futures, right?
Only Short Strangle or Iron Condor as well?
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Old Nov 19, 2012, 1:37pm   #80
 
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Re: Why do people trade in options and lose money ?

mainly SPY, sometimes SPX and AAPL, no futures. Just options using advanced verticals.
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Old Nov 19, 2012, 5:19pm   #81
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Re: Why do people trade in options and lose money ?

So you are mainly doing Iron Condores (vertical credits spreads), right?
I like futures better
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Old Nov 20, 2012, 3:16pm   #82
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Re: Why do people trade in options and lose money ?

lloyd bee

What do you define as advanced verticals?

Thanks
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Old Nov 22, 2012, 8:23am   #83
 
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Re: Why do people trade in options and lose money ?

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lloyd bee

What do you define as advanced verticals?

Thanks
A combination of specifically placed and timed Verticals, rather than just BTO a Debit Spread.
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Old Nov 26, 2012, 6:25pm   #84
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Re: Why do people trade in options and lose money ?

lloydbee

Thanks for the info.

Steve
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Old Nov 27, 2012, 7:37am   #85
 
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Re: Why do people trade in options and lose money ?

Because many of these newbies in binary options trading get ahead of themselves. Due to the fact that options trading, especially binary options trading, readily promises return of profit for every time it matures, they get so greedy without checking out the things they should consider in trading.

If you are new to binary options, check out my binary options guide. Better know the basics and study!
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