subject: The Number 1 Ability For Option Buyers [print this page] The stock market is much like an ocean and most of us option traders are seafarers. All expert seafarers recognize that there are times where one should not go out to the ocean at all. These are the seasons where the veterans sit back and watch the beginners perish in the thunder storms. An options trader knows such seasons and is patient in waiting for the harvest time to come before making a move.
After more than many years as an expert option trader and hedge fund director, I've had the honor of knowing many good choice sellers all over the world as well as the opportunity to learn from the mistakes of thousands of broke choice investors.
From all of these good and brave choice investors who dared move where no guys has before, and from my personal choice buying and selling knowledge, I'm very awed to understand that there really is not much distinction in the methods used by both profitable millionaire choice traders and completely split choice sellers. Both kind of choice sellers utilized the correct option procedures corresponding to their choice on the direction of the main asset. Many of these selection sellers even have the exact same opinion on the same underlying asset but finished up in significantly various results.
I carefully realized that it takes more than just proper analysis and perfect option method execution to create it as a millionaire choice buyer. It takes a different breed of man! It takes a breed of man with features not naturally found in many people and who acts and thinks very differently from an average individual.
I have consolidated and listed the #1 top quality of a genuine selections seller:
They are Chilled Headed
While increasing profits, option buying and selling even greatly increases the results of each little whipsaw on the fundamental property. What looks like a small, safe whipsaw in the cost of a share will look like an earthquake on the cost of it's choices.
In the face of dropping a lot of money very rapidly due to whipsaws, a millionaire choice seller remains cool-headed and relaxed no matter what the buying and selling importance states. Too many choice buyers bail out and lose fifty to 60% of their money immediately due to such whipsaws, all due to their inability to keep relax in the face of such stress.
I was trading in the call selections of a share along with one of my option trading students in mid 2006. That certain share went in to a fast and strong whipsaw that took 50% from the value of our positions quickly.
by: Javier Snover
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