option trading offer ?

eddyjo

Active member
I have received an offer to invest in an Option trading scheme

offering an income of 12% pa, The company has been trading

for 18yrs using their own trading pattern, the only thing I am

not sure about is they say if there is a "Drawdown" the income

could be reduced, Please can anyone explain what is a

Drawdown? Thanks Eddy.
 

TBS

Well-known member
If you start with £1000 and it becomes worth £600, then that is a £400 drawdown.
 

RogerM

Established member
12% is not enough to compensate for the risk of trading in options. If the system only buys options the chances of success are slim, and if it involves writing options, then you want a decent return to compensate for the extra risk involved. Even whilst learning I was making 40%+ with just one or two expiry trades per month. Traded aggressively it should be very much more. Why not learn how to do it for yourself?
 
With all these various trading offers made by vendors there's a better way to look at them.

Take off the rose-tinted spectacles and substitute some words. For 'scheme' read scam, and for 'invest' read lose. It'll give you a far better picture of what you'll be letting yourself in for.

It's far better to learn how to trade yourself.
 

cassiopeia

Active member
if there is a "Drawdown" the income could be reduced

I think what they are trying to say is, if the system they use starts to lose money so will you!
 
 
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