Inside Looks Into The Professional Options Income Trader journey...


Well-known member
Hello, T2W traders,

Well, I can't believe the 2014 calendar year is near its completion! It has been a great year for options income trading! In addition I have made new trading friends here at T2W! (y)

With this new Thread - I hope to bring into the open the various steps, Tasks, etc., that the trading newbie needs to go through (or wash out) sequentially AND successfully to sustain a full-time career/business in options income trading.

After numerous PMs and emails filled with questions and requests, I thought it might be both entertaining and educational for T2W traders to be able to get an in-depth behind-the-scenes experience into what is truly REQUIRED in the PROFESSIONAL Options Income Trader career pathway!

And in doing so - T2W traders will begin to see how and why < 3% of all Options Traders fail to consistently profit annually (defined as Options Income > $100k/yr). :cry:

Additional OBJECTIVES include: (a) encourage T2W traders to LEARN how to THINK and FOCUS sharply and intensely systematically; (b) encourage T2W traders to learn and apply Targets and Goal setting; (c) encourage T2W traders to USE a WRITTEN TRADING PLAN - and also to be measured and "graded" on his/her trade executions against that Plan; (d) encourage T2W traders to begin grouping and reviewing CLOSED NET P/L data very 20-30 Closed trades to identify and learn from Root Causes of Losses/Failures! :whistling :smart:

By the way - in many private Hedge Funds and Family Office trading operations, an Options Income Trader is EXPECTED to generate > 50% annual Net ROIs given his/her leverage factor. A trader unable to generate > 25% annually is most likely given the door. It is NOT cost effective for these trading operations to keep traders at this level given the high costs of taxes, broker/trading fees, licenses, incentive fees, etc. (n)

Over the next series of posts, I will cover much of the details. But for now - briefly - these are the Journey Milestones that new trading interns and clerks would need to experience, endure, and successfully complete - before moving on to the next levels:

1. Level 1: Build Your Self-Image as a Winning Options Income Trader. In addition begin to Build the necessary mental ingredients to focus on Income Generation, Wealth Building, Cash Flow.

2. Level 2: Build Your Self-Image as an Organized, Congruent, Efficiently Correct Technical Analyst. Reading the charts using Multiple Time Frame Analyses, Volatility, Volume, Momentum, etc., to generate statistically-robust chart-based Price Action scenarios and probabilities.

3. Level 3: Build Your Self-Image as a Competent Options Income Trader. Focus on Risk Management, Defensive Adjustments/Hedging skills and procedures. Implement precise directional and time-based Options Income strategies consistent with the Proper Price Action expectations (per Item 2).

4. Level 4: Build Your Self-Image as a Systematic Options Trade Execution Machine. Develop and drill down through the processes to achieve 100% Flawless Executions and systematically drive down through powerful Debriefings for lean-forward Lessons Learned opportunities (and to keep improving).

5. Level 5: Perform a Forced Comprehensive Status and Situation Audit. How has the Options Income Trading Professional done so far? How are the Closed P/L results? Consistent with the expectations of the Trading Plan(s)? Root Causes of Failures and Variance? Blind Spots?

The Level 5 is a KEY proficiency Milestone for the Trader-in-Training! It is here that the Trainee and his/her Self-Images must meet and face Reality's Closed P/L Results! There is no BS - no Excuses - no External Blaming. Everything and its Closed P/L Results are entirely 100% OWNED by the Trainee. :eek:

It is also at Level 5 that there is the HIGHEST BAIL-OUT rate. When the Trainee is NOT able to congruently integrate his/her Self-Image as an Options Income Trader with the Reality of Closed Losses repeatedly, it is time to face the painful reality. :whistling

Why all the FOCUS on building the Self-Image? Because the High Performance journey is bounded by the process of Be-Do-Have. By BE-ing the well-trained Self-Image, the Have (or Results) will take care of itself! (y) :smart:

In the Journey, there are three (3) more Levels - but these are not even really considered until Level 5 has been successfully passed! Briefly:

Level 6: Develop the Options Income Trader into an Income Machine by setting Weekly, Monthly, Quarterly, Annual Targets. Then forcing the Options Income Trader to meet and exceed the Targets. At this point, the Options Income Trader is still TRADING TIME FOR $$$. If he/she does not trade - there is no $$$ income coming in.

Level 7: Develop the Options Income Trader to move from TRADING TIME for $$$ Income - to use the Best in Class technologies and systems to automate all Trading Setups, Executions, Adjustments, Debriefings, etc. Now the Options Income Trader has effectively "morphed and grown" into an Options Income Business Owner/Manager.

Level 8: Take the Options Income Business into its higher forms of leverage to generate even more Passive Income. This is done using higher trading leverage. In addition there is broadening of # of positions traded. Finally there is the highest form of leverage IF and WHEN the Options Income Business begins to "morph" again into an Asset Mgmt business - or Performance-Based Trading Business (like in Hedge Funds, Commodity Trading Advisors).

In closing - the next few posts here will focus on the start and experiences of the Level 1 process.

I hope all will enjoy the entertainment and educational merits of this thread! :clap:

Happy Thanksgiving!



Well-known member
If you are NOT trading from a Written Trading Plan...

T2W traders,

Here is a quick question? How many of you have taken advantage of your "retailer's EDGE" by buying Super Savings discounts on the sales of Black Friday thru Cyber Monday?

You see - this weekend offers a real "buyer's EDGE" against the retailers!

So why not arm yourself as a trader with the same EDGE-based foundation?

How many of you are NOT trading from a Written Trading Plan?
How many do not conduct Debriefing sessions after every Closed 20-30 trades?
How many of you know your Per-Trade "EDGE" (for example - per $100 at risk)?

If any of the above is a "No" - then chances are you are NOT (yet) a consistently winning/profitable income trading professional!

How can I say this? B/c the data from professional pit trading firms to hedge funds to private family office trading desks to institutional trading firms - all indicate that the systematic WRITTEN trading plans are necessary for High Performance consistent success.

For example - what is/are your excuses/reasons for NOT having a Written Trading Plan? Or for NOT knowing what your Trading Edge is per $100 at risk?

There are many sound Written Trading Plans available - for purchase, off the internet, etc. You can PM or email me if you want access to some Written Trading Plans that can give you some IDEAS (esp this wknd - Trading Plans can be purchased at HUGE Black Friday - Cyber Monday Super Savings Offers!).

But the important point here is: No Written Trading Plan = you are basically saying to your internal Trader Self-Image that he/she is NOT WORTHY of your time and $$$ to BE-coming successful and consistently profitable.

When I worked with trading interns and clerks, there were two major SIGNS that accurately predicted for Wash Out/Failure in the journey:

1. Inability (for whatever reasons/excuses) to come up with ANY Written Trading Plan within 4 weeks! We did not even require it be a positive EDGE Plan. But just any Written Plan that he/she will be measured against.

2 Inability to score > 95% adherence (or "non-variance") from the Written Trading Plan across a series of consecutive 20-Closed Trades groups x 5 groups (total of 100 Closed Trades).

If - the above criteria even remotely strikes a chord of recognition within your own trading self-image and experience/habits - perhaps you need to reconsider your priorities elsewhere (?).

Well, more on this topic soon - have to run off & meet up w family now... (y)



PS - if you NEED or WANT robust Trading Plans ideas - please email or PM me asap. Take advantage of Huge Savings Offers this wknd Black Fri to Cyber Mon! :clap:


Well-known member
"Successful" vs "Winning" Closed Trades terms...

Hi T2W traders,

Brief educational clarification post here. As we explore the Income Trader pathway, please note the subtle operational metrics of a "successful" trade/campaign versus a "winning" trade/campaign.

"Successful" trade = trading orders, betting schedules, reporting/documentation, etc, were executed according to the Written Trading Plan with > 95% compliance, accuracy, per Plan'S rules/criteria.

"Winning" trade/campaign = Closed trade with Net $ result that was a Break-Even "scratch" trade, or a Closed trade with a Net $ Profit.

The value & applications of these terms will be clear and useful later in the Debrief process.

For T2W traders with Written Trading Plans, over the past 20-30 Closed trades, what were your results for "successful" and "winning" Closed Trades metrics?

Precision in Results Analysis is a required skill, process, for High Performance development & training in all competitive endeavors!

Any questions or observations/comments?

That's it for now.




Well-known member
Technical Lesson - Higher Accuracy MACD Bullish Divergence Exploits

Hi, T2W traders,

I'd like to briefly begin to introduce a few basic Technical Analysis concepts that strictly focus in how we apply and trade in our strategies.

Over the next several posts, I will introduce more details about some of the most current and high-accuracy technical methods that have a solid proven track record for being on the "right" side of institutional trading programs.

But for now - for those of you technical analysis users and technical traders - if you are interested in Fibonacci Retracement applications, I have just read about an interesting application to the Fibo Retracement tool applied first to the MACD indicator - and then to the Price secondarily. The report is free and called the Fibonacci Compass Lesson Plan - and it specifically attacks Double Bottom formations where and when Institutional Buying/Accumulation programs can be expected to occur.

The report is very short - but it does shine a strong approach to trading bullish divergence setups - and is bound to increase your Entry % Win Rate accuracy (meaning either goes to +1R quickly or higher) - a Break-Even worst case scenario.

Many bullish divergence setups fail repeatedly - and requires multiple "entry bets" until the final one is correctly hit. This Fibonacci Compass Lesson Plan approach will markedly reduce the false entry signal % rate!

Take a look at it if you like to "buy at the bottom" value player!

Best regards,

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