Dear Rajgreenpeace
Thanks to post your thoughts. You mainly did it for other members and so you not have to think that you have to post that I have to take it positively. Would not see any reason to take your post negatively. On the other hand: I see one point which you have to take seriously as a positive critique and I will write about that at the end of this post. Now let me go through your writings:
Your comparison with schools are accepted and even make sense under certain views. Even then let me expand the post a bit in a wider horizon. If futures or option or shares: The risk is given with any of those instruments and to think that options by it self are more complicated and risky than the other two instruments is wrong under certain aspects, which I am going to spot on now. I call it:
The common fear about options of most traders in the world.
The fact, that most think that options are more complicated and dangerous compare to futures and shares, lies in the variety of how option can be traded and the confusion about the option Greeks.
As there are so many option strategies are given, most get confused with them and here is the reason to find why most get afraid to trade options.
The option Greeks by itself are not so complicate to understand, but in combination with the different strategies, most struggle and get afraid.
To understand this combinations, your school example fixes to 100%, as this needs time and that is why I accept your comparison. Now let me go a bit deeper and show the way from where my comments came from:
Going on with the post: Many of today's and even in the past best option trader had some times not much knowledge about any option strategies or even TA. MM, clear targets with clear S/L and proba calculations where more important then other knowledge.
Depending on what we do, we also can trade options today by pure tape reading. There are guys around in today's trading industry which make in one month 100 thousand and more USD with any of those instrument just by trading them through tape reading. That is the job which is done and nothing else. No fancy TA and what so ever. Just nailing the trade.
The work is done at the moment the trade is nailed and then the next trade it token. Do we need three years to study options for that or do we even have to have any TA knowledge for that? I guess you know the answers and here the circle is closed.
Next one: As living from trading is a business: Yes it is like a shop, as a shop is a business. Now should we discuss more on that and make a ping pong argumentation game about it? No. Why? Each persons personal choice and nothing else. Every body is free to choose and make up his mind about that in what ever way she/he wants.
Now coming to the Insurance comment which is the only point in your post which I criticize very much and even makes me think about your option knowledge:
Dear Rajgreenpeace: Options if used the right way ARE the insurance for your stock market trading. If you do not know that, then you should not try to teach or comment in any way on any kind of option questions.
Good trading / DanPickUp
Thanks to post your thoughts. You mainly did it for other members and so you not have to think that you have to post that I have to take it positively. Would not see any reason to take your post negatively. On the other hand: I see one point which you have to take seriously as a positive critique and I will write about that at the end of this post. Now let me go through your writings:
Your comparison with schools are accepted and even make sense under certain views. Even then let me expand the post a bit in a wider horizon. If futures or option or shares: The risk is given with any of those instruments and to think that options by it self are more complicated and risky than the other two instruments is wrong under certain aspects, which I am going to spot on now. I call it:
The common fear about options of most traders in the world.
The fact, that most think that options are more complicated and dangerous compare to futures and shares, lies in the variety of how option can be traded and the confusion about the option Greeks.
As there are so many option strategies are given, most get confused with them and here is the reason to find why most get afraid to trade options.
The option Greeks by itself are not so complicate to understand, but in combination with the different strategies, most struggle and get afraid.
To understand this combinations, your school example fixes to 100%, as this needs time and that is why I accept your comparison. Now let me go a bit deeper and show the way from where my comments came from:
Going on with the post: Many of today's and even in the past best option trader had some times not much knowledge about any option strategies or even TA. MM, clear targets with clear S/L and proba calculations where more important then other knowledge.
Depending on what we do, we also can trade options today by pure tape reading. There are guys around in today's trading industry which make in one month 100 thousand and more USD with any of those instrument just by trading them through tape reading. That is the job which is done and nothing else. No fancy TA and what so ever. Just nailing the trade.
The work is done at the moment the trade is nailed and then the next trade it token. Do we need three years to study options for that or do we even have to have any TA knowledge for that? I guess you know the answers and here the circle is closed.
Next one: As living from trading is a business: Yes it is like a shop, as a shop is a business. Now should we discuss more on that and make a ping pong argumentation game about it? No. Why? Each persons personal choice and nothing else. Every body is free to choose and make up his mind about that in what ever way she/he wants.
Now coming to the Insurance comment which is the only point in your post which I criticize very much and even makes me think about your option knowledge:
Dear Rajgreenpeace: Options if used the right way ARE the insurance for your stock market trading. If you do not know that, then you should not try to teach or comment in any way on any kind of option questions.
Good trading / DanPickUp
