is options trading a scam?
@optionsguru88 (310)
Singapore
7 responses
@redyellowblackdog (10629)
• United States
3 Jun 07
I once traded index options on the OEX and SP-500 for a period of 2 years. At the end of that time I had a 4% profit. This is not enough profit to be worth the risk, stress, and mental effort. I do better just trading ordinary stocks. Less work, less stress, and more money. I tell everyone that unless they know a lot more about markets than myself, don't trade options.
Further research into other's results in options trading also convinced me that I did better than almost anyone I'd ever met. The vast majority of option buyers lose money and that is a fact.
Long story short, retail buying and selling of PUTS and CALLS is mostly a sucker bet. The premium one pays in today's markets is way too high.
1 person likes this
@optionsguru88 (310)
• Singapore
4 Jun 07
Hi :
Thanks for responding to my discussion.
I know exactly what you mean. I'm on stock options because I do not have enough capital to trade shares. I understand fully that a small-timer like me would have mountains to climb to trade options and using it as a leverage tool to trade shares cheaply. Thus I'm working very hard to research & ensure that the options I buy give me higher probability of success.
Thanks once again.
Yours Truly,
Tony Chai
a disabled trader
http://options4u.blogspot.com
1 person likes this
@optionsguru88 (310)
• Singapore
5 Jun 07
Hi :
You're truly a helpful buddy to know in the trading community.
Hope to meet you in real one day.
Nice dog you have :)
Yours Truly,
Tony Chai
htto://options4u.blogspot.com
@wealth168 (409)
• Singapore
2 Mar 07
Options Trading is not a scam. It is just like stocks and shares trading. There are risks involved.
Strategies are neither good nor bad. It depends on how you apply them and under what situations.
I am still learning about options trading.
You are welcome to post your responses in the new discusion I started by searching for "options trading recommended readings" or "options trading recommended books".
1 person likes this
@optionsguru88 (310)
• Singapore
2 Mar 07
Thanks for your comments. I do understand that stock trading involve a whole new spectrum of skills set compared to stock trading; mainly because when compared to stocks, options are actually depreciating assets.
I definitely need to keep refining my options trading skills so that I could achieve more consistent profits over the inevitable losses at times.
Would be visiting your discussion thread and give you ratings accordingly.
Yours Truly,
Tony Chai
http://options4u.blogspot.com
@ClickCash (29)
• Singapore
16 Apr 07
I think your original posting is a hypothetical one. I am sure you can break even!
Happy trading the earnings season!
@optionsguru88 (310)
• Singapore
16 Apr 07
Hi :
Thanks a lot.
I hope you had a great trading session with the Q1 earnings season.
Cheers!
Yours Truly,
Tony Chai
http://options4u.blogspot.com
@friendship (2084)
• Canada
3 Jun 07
No, options trading is not a scam, Tony. It takes a lot of risks. There are many factors that can be involved to be a successful option trader. Personally, I am not interested in options trading. I am more inclined to do analyses. :-)
@optionsguru88 (310)
• Singapore
4 Jun 07
Hi friendship :
Thanks for your comments.
I'm also impressed by your many thought provoking discussions.
Yours Truly,
Tony Chai
a disabled trader
http://options4u.blogspot.com
@Neo_Knights (1882)
• Indonesia
22 Feb 07
My suggestion, never put your position float. Better cut loss than you have to pay more to keep your position.
1 person likes this
@optionsguru88 (310)
• Singapore
23 Feb 07
Hi Neo :
Thanks for your comments.
I don't use margins to trade options. If the stock did not follow my anticipated direction, by the way I only aim for big gap up movement, I let the options expire worthless.
I practise money management so my risk for every trade is only 5% of my trading capital.
Yours Truly,
Tony Chai
http://options4u.blogspot.com
http://www.myoptionsonline.com
@wealth168 (409)
• Singapore
2 Mar 07
Options Trading is not a scam. It is just like stocks and shares trading. There are risks involved.
Strategies are neither good nor bad. It depends on how you apply them and under what situations.
I am still learning about options trading.
You are welcome to post your responses in the new discusion I started by searching for "options trading recommended readings" or "options trading recommended books".
1 person likes this
@Toyman32003 (13)
• Singapore
22 Oct 07
Its definitely not a scam. As one of the writers here says, its jus like trading a stock, except you need to be sure on its direction. More like buying in anticipation before the stock runs. I would suggest to all who wants to start with Options trading to trade with a fix amount of capital, usually equal or lesser than SGD1000.00 (if you can afford to lose them all).
If you cannot even make it with profit with this small start up capital, I would advise you to stop for a moment and re evaluate your Options strategies. Something has gone terrible wrong. Do not plunge in with more money, it will make the hole deeper. Problem most probably lies with you, not the Options.
Hope it helps.
Cheers.
@optionsguru88 (310)
• Singapore
22 Oct 07
Hey Toyman :
Thanks for the comments. What you've said are definitely good advice for new options traders.
Currently I'm a little under-capitalized to trade stock options efficiently.
Wishing You Success With Your Options Trading !!!
Yours Truly,
Tony Chai
http://options4u.blogspot.com
@optionsguru88 (310)
• Singapore
5 Jun 07
Hi :
If you are seriously thinking of trading options, you must first understand how the underlying asset that the options is based upon works.
Since I trade stock options, my basic foundation would be learning how the stocks work.
I might be simplifying matters here but you need to understand the stocks (or a particular stock) darn well and then use options to trade the stock as a leverage investment tool.
My technique, whom I learnt from Dr Clemen Chiang of Live Freely Seminar (Singapore), involves using options to trade shares which have high probability of gapping due to earnings announcement.
There are many other options trading techniques and if you are more conservative you can try Mr Kurtis Hemmerling's method at :-
http://www.thestockoptionscourse.com/
No matter what options trading methodology that you finally embark on, I wish you success in your trading journey.
Yours Truly,
Tony Chai
a disabled trader
http://options4u.blogspot.com
