July 20th, by Karl 0 Comments. So how do you support yourself by trading options? How do you turn the contents of your stock portfolio into a workable income? There is a small population of financially solvent options traders, and this article presents ten methods they use to ensure their stability and financial wellbeing.
The more robust the profile the better the results. Can you make it Work with Options Alone? Not every trade nets income, and if you encounter a dry period in options with nothing to fall back on you could encounter real consequences. Still, getting by on option trading alone can be done with the aid of the right brokerage, the right technology, and the right self-discipline.
It depends on the trader in question. Some people pick it up quickly, some are lucky enough to have experienced help and advice, and others struggle with the basics but come to understand them after rigorous effort.
This number can, obviously, vary wildly. Your needs as an individual are the only determining factor. Where do you live? Do you have children or dependants? Are you required to travel often? What are your other expenses?
Is property value high or low in your area? Try to think of it as a safeguard against your own reckless or overreaching tendencies.
Can you afford to lose fifty percent of your assets? Can you afford to lose sixty percent? You should always remember, too, that greed is a powerful motivating factor with little to no basis in logic. Then get a broker you trust to the ends of the earth or else stay out of the game.
A bad setup can really hurt your financial situation. Unless you can take the hit it is strongly advised that you take the time to educate yourself about at least the basics of options training.
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