Great Trader Part I
Great Trader Part I
Have you ever wondered what makes a great options trader? I don't mean an options trader that does pretty well, but one that you envy and want to be? Are great options traders just born that way? Does being smarter necessarily give you an advantage in options trading? Is studying charts until you are bleary-eyed from looking at them the secret; or is it just dumb luck on who succeeds and who fails?
The qualities that you will need to succeed in my opinion are a commitment to success, having a options trading plan and the most important, mastering your emotionsóor the psychology of options trading. I believe that options trading is the hardest job in the world (quite possibly the best, but the hardest). Thatís why it will probably take you a lot longer than you think before you really get a solid grip on it.
So letís first talk about your commitment to success. This essentially sounds like the easiest of the three qualities to master doesnít it? Why does anyone want to become a options trader in the first place? Probably, because they want to become wealthy and very successful. Who isnít committed to that, right? All you need is some money, charts, and a platform and you are on your way. Almost everyone says they are committed but most people are not because when they find out options trading is workóand it is. They tend to lose their focus and their original goals when the going gets though.
If you are committed to success then you must be committed to reaching your goals. The most important part of having goals is to write them down. If you never write them down they are simply just dreams. We donít want to dream we are a great trader we want to realize that we are! Only about 2% of Americans write down their goals. Is it really shocking to know that most people never achieve what they want out of life? As ìcornyî as it may seem, when you write something down no matter what, your thoughts are transformed from the subconscious to the conscious and are now tangible. Your goals have become something you can see and say out loud. If you never write them down they never exist outside of your thoughts.
Let me leave you with this before I end this introduction on how we are going to build a great options trader out of you. I think everyone can agree whether you are a beginning options trader or a more experienced options trader that there are several key components you will need to do to become a standout. Having said this I also know that most of you will not be committed to do this at first. I know I wasnít. I thought to myself I am too smart and I know how to options trade. I knew it wouldnít be easy but I was unprepared for the results that followed. Iíll give you a hint, they werenít good. After I decided to fully commit myself and write down my goals did my results finally change. Letís face it; options trading is a realm like no other. Options trading looks easy and which in turn makes you lazy to work at it. Be committed to your success and write down your goals right from the start will only help you achieve the success you are after that much quicker, I promise you.
About Dan Passarelli
Dan Passarelli, is the author of the book Trading Option Greeks and the president of Market Taker Mentoring LLC. Market Taker Mentoring provides personalized one-on-one mentoring for option traders. Dan started his trading career on the floor of the Chicago Board Options Exchange (CBOE) as an equity options market maker. He also traded agricultural options and futures on the floor of the Chicago Board of Trade (CBOT). In 2005, Dan joined CBOE’s Options Institute and began teaching both basic and advanced trading concepts to retail traders, brokers, institutional traders, financial planners and advisors, money managers, employees of the SEC and Federal Reserve bank, and market makers. In addition to his work with the CBOE, he taught options strategies at the Options Industry Council (OIC). Dan has been featured on television and radio and has written numerous articles in the financial press. Dan can be reached at dan@markettaker.com. He can be followed on Twitter.
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