Kirk Du Plessis 41 Comments. There is no set figure on what you can make in your first year as there are so many variables. Whether you are a completely new trader or an experienced trader, you'll still need to master the basics. The goal of this course is to help lay the groundwork for your education with some simple, yet important lessons surrounding options. Click here to view all 20 lessons?
You need to learn how to trade stock options successfully before you put a penny into the market otherwise you will fail. As a starting point, listen to this podcast which should help you to put together a game plan and aid you to hack through the options trading learning curve in 3 months. We lay out the complete framework in the podcast and notes page.
Next, sign up as a free member to check out our Beginner Video Track which takes you through everything you need to know as a new stock options trader.
Only a small number of traders are profitable, and that number gets even lower if you look at a year average that measures consistency. No question about that. However, what matters the most and differentiates you from many other traders is learning from the mistakes and continuing after failing. This way, you learn how to enter orders, adjust trades, and more importantly learn from your mistakes without losing real money. And even then, you need to keep it small once you decide to invest real money.
Again, I see too many people quitting after a streak of losing trades. Come on people, losing money is part of the game. Listen to the technical indicators , control your emotions, and above all…preserve your capital! Rather, concentrate on low-risk, low-frequency trading with income-oriented trading systems. The key to success with options is keeping your trades consistent, and trading them persistently.
One of the most effective ways to succeed in options trading is by having a sound trading methodology. Take time to sift through most of the information available on the internet and conduct factually driven research on trading stocks and options. This way, it will be easier for you to set realistic income goals and avoid making too many mistakes. Share your expectations here, however crazy they might seem now — if you have been trading for a few months how has it been?
Share your stories and experiences with us in the comment box below. 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. Joe Bracco , Thanks Joe. The reality is that if you break-even your first year trading then you did really good.
Stick with it though! Dont understand how the options market works including how options are priced c. Short your learning for each strategy — master each before you move to the next d. Dont have s system to choose the right strategy for prevailing market conditions and YOUR personal circumstances for we all know there are many options stratgies you can use on a technical buy signal for example g.
Dont have an options specific position sizing calculator and it needs to be more than just dividing your capital into chunks h. PS My expectation is most who read this will not take action nor will even take it seriously enough to use it to review their own trading.. Im a 18 year old college student. Depends on how much you start with in your account but probably trading stocks that might be unrealistic.
Is this even a real question? What will be a reasonable amount to start an account with? Hi Kirk, I think you will find a lot of people are thinking exactly the opposite to what you believe. I have made my money from real estate. I really enjoyed reading this though, so I am going to subscribe. Some people have the same unrealistic expectations in real estate. I had no opportunity for education and therefore no way of earning a decent wage so I had to learn how to make extra income but if I were young, I would just concentrate on my education and getting a well paid job as top priority.
Maybe this will teach me how to get a few extra bucks in my retirement which I could pass onto the kids, that would be nice. Thanks for the honest insight Sue and for subscribing of course! I agree, an education in any particular area of investing is needed badly. According to me one is long time where you can actually achieve the success and many more.
Do you know anyone that does it? Could be higher or lower each month. I have just left uni and am looking into trading to try and generate some capital. I have spent around a month so far on research and plans to make. I want to start small before I actually commit a real amount of money.
Until I can actually get the hang of not losing a small amount of money, I will then consider putting more in. After all it is essentially strategic betting. Thanks for the reply anyway. I am about to take a equity day trading job just out of college. I am not trying to get greedy everyday to max out my profit. I am asking because no one can give me an honest answer of what to expect.
That said you are better of though marginally making position trades long or short for longer periods of time. Even better still you are better off to use options. Sure maybe luck or good judgement. High frequency trading firms and prop firms make money with lots of trades but that are rarely too directional. Sure there are guys that do better than others I would just stay away from it if I were you again my honest opinion and find a firm that will coach you through options trading.
I think a very reasonable expectation is something along the lines of what you outlined here. Might be a slightly smaller paycheck but much more potential and no boss to contend with. Kirk Du Plessis 41 Comments July 8, Sounds like a plan to me! Great post Kirk, If you: Thanks for adding in here Stephen!
I agree — I would hate looking at them every day too! Hi Kirk, I am about to take a equity day trading job just out of college. Money is here today gone tomorrow. Free Video Training Courses. Daily Options Trading Alerts.More...