If you want a long career as a trader, it comes down to one thing: edge. Trading isn’t about finding one massive win that changes everything. You’re going to have winners and losers no matter what. What keeps you in the game is making sure every trade you put on has a reason behind it.
Edge shows up when you consistently make more on winners and give less back on losers. For options traders, that edge usually comes from four places: technicals, fundamentals, volatility and smart trade construction. This time of year, a lot of traders are recommitting to their process, and that’s exactly what matters most. Trade smart, trade with edge.
Options involve risk and are not suitable for all investors. Before trading options, please read Characteristics and Risks of Standardized Option (ODD) which can be obtained from your broker; by emailing investorservices@theocc.com; or from The Options Clearing Corporation, 125 S. Franklin St., Suite 1200, Chicago, IL 60606. The content posted by our authors is intended to be general education and / or general information in nature. We are NOT providing advice for any individual trader. No statement made by our authors or subscribers is intended to be a recommendation or solicitation to buy or sell any security or to provide trading or investment advice. Traders and investors considering options should consult a professional tax advisor as to how taxes may affect the outcome of contemplated options transactions. Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one’s financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
