Trading Options For A Living Reddit

I wouldn t say i trade for a living but surely it has become a pretty important source of income for me.

Trading options for a living reddit.

The unfortunate man thought that he could earn between 60 and 100. I do think you can trade options for a living it obviously depends on how much money you need to live well and that is very different from one person to another. I lost every last cent that i invested. The other 95 is managing your emotions.

I figured apple would tank. In my case my first options trade was the day after steve jobs died. How much money did he have to invest. Here s how much money you need to trade options for a living.

One options contracts control 100 shares and are cheaper than buying those shares. I think i would be able to do it i m happy with my other job as well so it. Trading stocks for a living really isn t difficult. That was the day i learned that you have to diversify and you shouldn t bet one single penny on options unless you re prepared to lose it.

You trade the ticker not the company. It just requires significant liquid capital to get started think at least 100k liquid to give yourself any chance of success of surviving while you learn but keep in mind this would be to trade for a living not just to trade invest period. If you re looking to make unlimited day trades then you need at least 25 000. Trading options for a living allows you to trade large companies and systematically capture profits from the market over and over.

Most new option traders make the incorrect assumption that they will be successful and the only question is how much they should anticipate earning. Also stock picking itself is only about 5 of the puzzle. I can answer that for day trading none of that stuff matters. I m challenging myself to turn 1500 into 10 000 by the end of this week trading options.

You may not care too much about the details of controlling shares and have no intention of holding the contracts along time and that s fine. To keep everything simple i will only hold the same funds with my broker for the week no deposits or withdrawals. A reader once asked me whether he could expect to earn a sufficient living and support himself in retirement when trading options. 5 000 is good for small accounts buy will make it a bit difficult to create a living.

So far i traded one position last friday and returned 21 intraday before commissions 18 weighted. If you own 5 options contracts you control 500 shares 10 options contracts controls 1 000 shares and so on and so forth. Most day traders have a stock scanner and they set it up to look at stocks that have gapped up or down 10 to 50 since the prior day s close and have lots of volume then they trade it because it is a stock in play basically if a stock is. If you are going to be a short term swing trader then you ll want at least 10 000.