Option Trading For A Living
It doesn't really matter whether we're school teachers, bus drivers or doctors, each of us craves to find that cutting-edge job that gives us the appropriate rush to stay on our toes. We also crave the glamour of risking it all on the turn of a dime. And, if we get lucky,
Well, first of all, whilst the maximum amount an option trader can lose for making a wrong call is the premium he pays for the option, this sum can actually be a sizeable sum of money. What's more, get it wrong a few times and your not having a good year.
Secondly, before deciding to quit that secure job for the world of options trading, keep in mind that most option traders are self-employed – taking on the risk of loses and profits themselves. Whilst this may sound appealing to you, most option traders will tell you that there's a lot to be said for the security of regular income.
Thirdly, if you have some start-up money, think of what types of returns you'd be getting on this sum of you did nothing all day but sat on a beach relaxing. If you find that the returns are sufficient to keep you in the manner to which you have become accustomed, don't trade for a living!
That said, assuming you would still like to option trade, keep in mind that option trading is a very disciplined profession in which you'll be expected to spend large amounts of time and resources to researching the area you chose to trade in. Whilst “gut feeling” may cause you to have a one-off lucky moment (to the envy even of all other traders), it is unlikely to sustain you in new career for any period exceeding a couple months. From then on in it is all about making sure you know your stuff, and you know it before anyone else does!
