So you want to learn how Options Trader works?Or do you want to learn more about how to trade options? If you are convinced, Day Trading Options is a good sign. Please be prepared to work hard, be patient, and ensure you understand the Options Alerts to the best of your ability.
If you’re not ready to commit, stay away from the day trading options.
Possibly, you will be lucky at first, but in the long run, you will lose. Why? Because there is a lot of ‘story’ out there. Your email inbox is full of this stuff and how you can make incredible profits. They are incredible precisely because they are not valid. The best options trader consistently achieves 100% per annul. This is approximately 6% per month after fees. A more realistic goal is around 2-3% per month.
Lately, the concept of options trader seems to have become very common and routine. Traders still ‘alive’ have learned from challenging experiences and know that failures can be avoided by trading with experienced and stringent rules. Most of the dozens of textbooks on options strategies are inappropriate for most people. However, an Options Alerts market is appropriate for options trading for sophisticated and less experienced traders.
Why Day Trading Options
Gone are the days when the small trader competed virtually alone against the market maker in the pits. Today we compete against individuals of all kinds, and the person on the other side of your position may know something that you do not and possibly have some advantage in the buying and selling fork.
Now the Day Trading Options market makers are machines, and they don’t have emotions, and they don’t get tired. The professional market maker uses programs and systems designed to adjust his position automatically with each underlying tick.
For every trade he makes in the Day Trading Options market, the software adjusts the position to delta neutral, and thus he is never exposed to the market’s direction. The market maker wins the bid and asks fork. These spreads vary between the type of strategy being bought and sold, whether a vertical spread or iron condor. It depends on the sensitivity of the trade regarding the movement of the underlying. Butterflies, for example, have lower sensitivity than a simple ‘vanilla’ option (buying or selling a single option).
All this has equalized the conditions under which each trader operates, and new (very sophisticated) software has reduced the learning time from several years to several months. The volume levels have been increasing, and it seems that it will continue to do so in the future. And this will give the trader more liquidity, narrower buying and selling forks, and better position entries and exits. Buy and sell spreads are tightening as market makers battle each other for more order flow. As technology develops, options trading will become more prevalent and can be done more conveniently and cheaply than today. This will increase the number of traders in the market and will also bring more liquidity.
Tips for first-time investors:
- Review periodically, together with your adviser, how your investments are. If they haven’t given results, evaluate the changes you need to make to refocus the path.
- Your adviser must answer punctual and clear to all your doubts as well as should help you to invest (build portfolios of investment either with shares or with various investment funds variable income) according to your risk tolerance level, investment term, financial goal, current financial situation, etc.
- Invest only with intermediaries’ financial statements duly authorized, regulated, and supervised by the Commission National Banking and Securities.
- Always consider the investment in stocks as an investment long-term, the opening of the business of your dreams or your retirement– to cite a few examples – will be your best ally
- Watch your investment term. The stock market is volatile. Be scared if in the short term you have losses, hold on, and don’t sell. Probably at the end of your investment, it recovers.
Go to the Options Trader!
If you are a trader lost in the markets, without any system or trading plan, losing money, and, above all, without consistency, Options Trader will interest you.
Option Alerts, if used well, can help you find the perfect trading style, and it is the trading that adapts to your rhythm of life and personality and not the other way around.
The use of options and the combination of options and underlying (spreads) gives the operator infinite possibilities when facing the market.
For example, we can use option spreads to invest in the long term, hedge and reduce risks, generate extra income on our shares, speculate on directional movements, swing trade, work sideways ranges, trade increases or decreases of volatility and a long etcetera.
