Options Trading Is Not For Everyone

My favorite neighbor, whose wife makes some legitimately delicious Pasta, got killed this week trading Options, and asked me whether there is a Holy Grail to consistently make profits trading Options.

First of All: Options Trading is not for everyone. The risk involved is simply too much even for Professional Traders to handle, let alone profit consistently. Any Financial Instrument, that involves leverage, is a sure shot way to lose your life savings, and disrupt your personal life to the point where you only find peace in constantly Worrying about your Finances; like a drug addict.

Can you make money trading options?

Sure you can; but the risk of losing that money is equally HIGH.

The ideal way to trade Options, is to not trade Options at all. Look for safer instruments like Stocks, and try to walk the fine line between Trading and flat out Gambling.

Conclusion:

Knowledge is NOT equal to SKILL.

And in Trading, SKILL is NOT equal to PROFITS.

Because in any case, when you place a trade, you’re still at the mercy of the broader market to deliver those flashing Green lights on your computer screens.

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Wall Street Fool provides unbiased real-time market analysis and commentary for Stocks, Bonds, Futures, Forex, Fixed Income, and Derivatives markets.
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