WklyOptions
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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!
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).
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.
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.
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! :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!
WklyOptions
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!
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).
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.
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.
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!
: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!
WklyOptions
