Options Education

December Discipline


Welcome to December!

The last month of the year is always a strange one as fund managers look more to locking in gains and handling year end tax consequences rather than committing new money. Volume will continue to get thinner as the holidays approach. January, on the other hand, is a great month to trade as everyone starts with a clean slate.

Therefore, barring unforeseen developments, I will not be doing a lot of new writing this month. Of course, if there is a particular topic you would like to see covered, you have but to ask.

Let’s start with a few basics. Don’t put money in an options trading account that you cannot afford to lose. I promise you, if you worry about losses you will never make money.

Always remember to never confuse trading with investing and vice versa. They are completely different beasts.

Don’t have more than 10% of your trading account in any one trade. And always keep at least 10% of your account in cash so you can pounce on a sudden opportunity.

Keep a trading log. It does wonders for your discipline and peace of mind.

Keep. Your. Discipline. Financial, emotional, intellectual.

You don’t have to trade every day. The only reason to trade is to make money. It’s not a hobby or “something to do”.

You can never stop learning. The more you put into trading options the more you take out.


About Randall Liss


Randall Liss is a long-time, seasoned veteran of the exchange-traded options industry. Mr Liss helped found the European Options Exchange in Amsterdam, an elected member of the Board of Directors, a long-time member of the Business Conduct Committee and a co-founder of The Market-Makers Association. He ran a market-making operation for a large Dutch bank and also managed his own market-making firm. Since 2006 Mr Liss has devoted his energy to educating and mentoring traders, investment clubs, individuals and institutions using his own proprietary curriculum, The Theory and Working Method of Trading Options. Randall has lectured in Amsterdam, Brussels, Paris, London, Tel Aviv, Jerusalem, New York and Chicago on a variety of investment and derivative strategies. He is also an on-camera options analyst for Bloomberg TV and the Business News Network. In 2008 Mr Liss returned to the town of his birth, Chicago. His clients include ABN AMRO Options Clearing, optionsXpress, Columbia College, The Chicago Institute of Investment, The Options Tribe and many private individuals and investment clubs. Mr Liss strongly believes in demystifying the options market and making the seemingly complex understandable.

Author's web site: http://www.thelissreport.com/


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The Options Insider Radio Network

The Options News Rundown

Your source for the most important news and information from the world of options.

The Options News Rundown

The Options Insider Radio Network

All of our radio programs in one convenient place.

The Options Insider Radio Network

Options Insider Radio

The original options podcast. Features interviews with leading options figures.

Options Insider Radio

The Option Block

This high-octane program features education, analysis, strategies and unusual activity.

The Option Block

Volatility Views

The premier radio program for volatility traders.

Volatility Views

The Long And Short Of Futures Options

Your source for futures options information.

The Long And Short Of Futures Options

The Advisor's Option

Arming advisors with the info necessary to manage risk.

The Advisor's Option

Options Boot Camp

Get into peak options trading shape.

Options Boot Camp

Options Insider Special Events

Compelling panel & special event recordings from the options world.

Options Insider Special Events

OIC's Wide World of Options

A dynamic mix of current events, investor resources, & strategy insights.

OIC's Wide World of Options

Trading Tech Talk

We break down all the amazing technology that takes your trades from the click of a mouse to the clearinghouse.

Trading Tech Talk

Options Playbook Radio

Break down cutting-edge options strategies and learn how to incorporate them into your portfolio

Options Playbook Radio

Options Oddities

We track all the unusual options trading activity on Options Oddities.

Options Oddities

This Week in Futures Options

The program designed to help active futures options traders stay on top of this ever-changing marketplace. 

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The Business Show

If you like business, if you like humor, if you like stock symbols, this is the podcast for you.

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