Why options trading
Do you go to the beach just because it is there. What is your underlying reason. Is it to get that great tan, to check out great whites which patrol our beaches or is it to experience the great pleasure of catching a wave. The point is your underlying reason is your motivation. Your motivation is what drives you to get to the beach as often as possible. Perhaps early morning before work or late afternoon before dinner. If that underlying reason is there a way will be found.
Trading the world of options is no different. Once your curiosity is aroused the why`s soon surface.
A few reasons to trade options are
- Create money or income stream — Probably the most popular reason is to replace your current income.
- Find strategies to suit your risk style
- Someone told you trading options is risky.
One of the above or a host of other reasons could be your motivation to delve into this highly leveraged world.
Here are my motivating factors and yes people can have more than one reason.
Firstly the thought of replacing earned income with portfolio income propelled the grey matter into action.
Secondly it`s in the strategies. Early on in researching strategies you realize there is more than traditional puts and calls ( get to that in future article ). You learn to create unwritten strategies with the mind. These are my underlying reasons for trading strategies.
What are your motivations
One more important point you can never know enough in options trading. The moment you think this trading will come back and bite you.
You may have a different reason entirely to pursue an interest or career in the world of exotic option trading.
I would love to hear from people with a passion or even a mild interest (do it when time allows) on your motivation for trading options.
Copyright © 2012
Hi John,
I’ve done a bit of options trading in the past.
I found it very exciting when I was making money – and very stressful when I was not!
I love the numbers side of it – working out all the possibilities – how a small move in one direction can be hugely significant in another direction …and there are so many different ways to trade options. It’s all quite fascinating.
May go back to it one day
Hello Jan,
Yes it can be exciting and stressful like a roller coaster ride. We need to look at both sides.
G’day John,
Been an options customer of Halifax for about 5 years and enjoy it when I make a profit !
Hey Harry,
Lovely to see the capital appreciate.