Everyone wants to make money, and some traders will take too much risk along the way.
I'll teach you how to trade stock options the right way.
Traders need discipline, patience, and the right options trading strategy to be consistently profitable and make $1 million a year from trading.
What percentage of option traders make money?
If done correctly, the majority of options traders can make money.
However, in reality, probably around 50% of options traders are profitable (because they're not disciplined).
If you learn how to trade options, you will not make a million dollars overnight.
To make a million dollars with options trading, you need to build up your account and implement the best options trading strategy.
My personal target is to earn ~35% per year trading options.
While I'd love to earn more, traders who trade too aggressively end up assuming too much risk and oftentimes lose money in the process.
The most successful options traders make money by exercising patience and do not trade often.
Most Successful Options Strategy
How can you make a million dollars option trading?
You could try a wide range of strategies that promise quick results.
Or, you can follow the most successful options strategy.
My online options trading course is designed to benefit all experience levels, from new traders to experienced traders.
How to Make a Million Dollars Trading Options
The most important factors to being a profitable options trader include:
1. Limit Your Information Sources
We live in a time where there is too much information and not enough action.
Additionally, bad information can cost you a lot of money!
2. Evaluate Your Account Size
If you have an account size below $15,000 you want to have a watchlist with five securities on it.
At any one time, you will have a maximum of two trades on, preferably one.
If you have a larger account ($100,000+), then it may be best to have positions on 4 or 5 securities at once.
3. Use Your Capital Efficiently
Selling naked options may enable you to easily manage positions, but you have to use your capital efficiently.
If a new position shows you a large profit within a few days, then it's best to simply close it out and allocate the capital elsewhere.
4. Trade Options on Market Leading Stocks
Ignore everything else and only trade market leading securities.
5. Sell Puts and Purchase Call Debit Spreads
Since the stock market tends to increase, it's best to have a long bias.
Learn Successful Options Trading
If you are ready to get serious about options trading and invest in your financial future, David Jaffee provides a comprehensive online options trading course.
By learning successful options trading with David Jaffee, you can create winning trades and protect against inherent human greed.
Frequently Asked Questions (FAQs)
Can you make a million dollars trading options?
Yes, but you'll need to take your time and be slow and methodical, while mitigating risk.
If your goal is to make $1 million a year by trading options then you'll need to start with an account size of ~$3 million.
While it's definitely possible to turn a small amount of money into a lot by trading options, the reality is that you don't want to gamble with your money.
Placing high probability trades, and hitting singles, while hedging your portfolio and buying options at market extremes, provides the highest probability of success.
Are there option traders who made millions?
Yes, there are, but there are also many who lost money.
Focus on reducing your risk and hitting singles, and, over time, your returns will compound. You can sell puts and calls, and buy options at market extremes to hedge your portfolio.
Can option trading make you rich?
I believe it's best to target a monthly return of about 3% while trading options. A 3% monthly return will not make you rich, but the goal is to be consistently profitable and to learn a valuable skill, not to gamble and try to hit home runs (which usually causes traders to lose money).
Are there Option Trading Success Stories?
There are many successful options traders. They usually sell option premium while also buying options during market extremes to hedge their portfolio and reduce portfolio volatility.
How traders make millions?
Remember that the more money you're striving to make, the more risk you'll assume. It's best to hit singles and target a monthly return of about 3% so that you protect your capital while trading the best option trading strategy.
Are there millionaire options traders?
Yes, there are. However they are disciplined, patient and do not over trade (instead they trade only the best opportunities).