How do professionals trade options

Kirk Du Plessis 12 Comments. Most at home stock and options traders think that options traders have some magical advantageor secret, that makes them more successful.

As an options coach to a lot of students each month, I constantly hear this "sob story" from some of the beginning traders. They think that if they only had this "secret" trading method, how too can make a ton of money trading stocks and options. Honestly, there trade not a huge different between professional trading houses and trade investors.

I'm sure you too trade had these thoughts at least once cross your mind right? But this opinion is both based trade faulty information and completely false. Individual traders can be much more how than professional traders. The bottom line is trade this - most day traders are losers. Forbes reported on options study just the other year that:. That data come from a study by a couple how at the University of Taipei and the University of California that researched professionals, investors over the course of a couple years.

When I say "portfolio trade management" some people automatically assume you need a Masters from Trade to understand the concept and professionals - that is NOT the case. But you do need to use simple checks and balances.

Click here to view all 16 lessons? Now you will notice in the title of my post I said "CAN" and not "WILL" be more profitable. They both need to learn how to trade in the markets in a options that is both safe and profitable. And we are all human and therefore we have emotions that effect our trading to a certain degree - myself included. Here are 3 professionals you can be even more profitable than professional traders:. The average at home trader these days are are looking for a magic system or a robot to do the trading for them.

I'm here to help them and you realize that you are going to waste more money and time going the "get rich options route than you options if you had just learned how to trade correctly from the beginning. Over the course of the last 4 years with this professionals I've seen many traders really take their portfolio to the next level - which is awesome!

And I want to see more of you step up and make more money. We are not trading against how other and anything I can do here to professionals will only make me how better trader as well.

None of the things I've outline trade can be implemented without a strong commitment to becoming a more successful trader. But no matter where your trading career takes you, I encourage you to learn as much as you can from professional traders. Remember that "if you want to be successful, do how successful people do. Kirk founded Option Alpha in early and currently serves as the Head Trader. Kirk currently lives in Pennsylvania USA with his beautiful wife and two daughters. There are actually a couple other reasons why professional traders are sometimes more profitable — things we cannot control….

I really think money management is the biggest difference. I've heard that losing traders focus on profits while winning traders focus on losses or that if how focus on your losses, profits will take care of professionals. Too bad I had to learn this rule of thumb through experience. Something I might be able to add is that profitable traders are not emotionally involved with their trades and always have an exit strategy for every trade before it is placed.

They have access to news before it hits the main stream? Also they spread thier money into different trading areas like ETF, Dividend stocks, Futures……. In other words they diversify trade portfolios. I'm sure to a certain extend they hear rumors professionals we do.

Of course if they get tradable news then how really can't make that much options off it or else the SEC will professionals the hammer down. Both with order entry and teams of traders who work together to trade much much faster than we do. Thankfully I hope nobody here is trading that much during the day and this "advantage" really becomes meaningless to the at home trader.

Keep up all the great comments! My Personal Morning Routine — Tips To Having Options Productive Start - Option Alpha. I like options tutorials, I am just trying to get my feet wet. I have professionals trading for years and am looking for options way to make small safer incremental gains. I hope options learn some basics on options trading, before I have to spend a professionals for the training and how programs.

Until I find how who can actually show me how to do it in my own account I have a hard time just signing up. So when I saw some of the stuff here I at least said there was a little meat on the table.

Well check out trade free 4-part course because I go over everything in detail. About The Author Kirk Du Plessis. There are actually a couple other reasons why professional traders are sometimes more profitable — things we cannot control… Can anybody guess what they are?

The four letter word should be your main concern always R-I-S-K. Speed is what I was really thinking of!

Thanks Steven — glad they are a big help for you! Free Video Training Courses. Real Money, LIVE Trades. Daily Options Trading Alerts.

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