Is Option Trading Gambling?

We view it far too frequently, haven’t we?

Advertisements that tout making a large number of percents in profits within days and millionaires made within days, simply by option trading! Such advertisements usually draw hordes of hungry, in financial trouble gamblers who require that “one big win” to recuperate their financial obligations or losses elsewhere for their abnormally costly workshops.

95% of individuals who walked into such workshops, compensated for this and really traded options, lost all of their money. 3% can make some money inside the first couple of trades after which lose everything subsequently. 1% will truly have sustainable money along with a final lucky 1% can make the 1000% per month on their own first month (again, simply to lose everything over the following month). Anybody who has been around this predicament usually believe that option trading is simply only a gamble with an instrument which has no worth of its very own.

Yet, many professional traders and fund managers are earning a great, consistent make money from option trading! These professionals don’t make 1000% per month in profits, neither can they ever, however they keep a full time income within the markets every month, every year (me incorporated)! So, why is option trading a genuine investment and trading activity to those professionals along with a mere gamble for individuals who lost all of their money attending option trading workshops?

The main difference is within ATTITUDE. Attitude governs decisions and actions. Anybody who approaches option trading using the “get-wealthy-quick” attitude may also soon end up “getting-poorer-faster” due to the fact these punters wishing to “make-it-big” on their own next trade, totally rejects any semblance of the trade management strategy, totally put aside sensible analysis in support of a 50/50 “bet” and take totally senseless from the money positions that either allow it to be big or expire completely useless!

A genuine option trading professional utilizes sensible money management strategy on every trading chance, weighted against the danger of non-performance. Which means that a genuine option trader won’t ever invest his money into one big from the money position! A genuine option trading professional utilizes trade analysis methods according to proven methodologies in order to place the likelihood of performance within their favor rather than treat every trade like a 50/50 bet. A genuine option trading professional calculates the quantity of options leverage for use on every trade to ensure that his portfolio isn’t over-leveraged. A genuine option trading professional don’t expect to really make it big on his next trade and he isn’t targeting one huge homer but a number of small wins that eventually accumulates. A genuine option trading professional never let one loss to eliminate his portfolio while he treats the marketplace based knowing it does not matter just how much analysis continues to be conducted, there’s always an opportunity the market will work contrary to him.

The bottom line is, a genuine option trading professional (as well as an option trading champion who stays hanging around for a long time) vary from a gambler (who rarely survives for over a month) mainly when it comes to mental attitude! The incorrect mental attitude transforms option trading in the sensible and complicated financial instrument that it’s into simply lottery tickets.

The issue with many option trading workshops today is they don’t put these critical aspects of effective option trading together! All they educate are how option trading could make anybody wealthy very rapidly! It is just like teaching someone how you can queue up for any lottery ticket! A genuine option trading system incorporates all of the critical elements to effective option trading From searching for trading possibilities systematically, to analysis of this chance cellular the trading horizon needed, to picking the right option in line with the needs of this chance to risk balanced trade management and much more! One particular option trading methodology may be the Star Trading System

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