January 12, 2009
Trading options questions?
Trade asked:
Im new to options and i started a virtual account and so far the past week or so ive had great results. Id buy an option by looking at the stock seeing if it will make a nice move up or down then buy a call or put.. and the option would move like 20 - 100% in one day!.. so in real life could i see that same day for a nice 20 - 100% profit?? im trading both in the money and out the money options..
see = sell*
Im new to options and i started a virtual account and so far the past week or so ive had great results. Id buy an option by looking at the stock seeing if it will make a nice move up or down then buy a call or put.. and the option would move like 20 - 100% in one day!.. so in real life could i see that same day for a nice 20 - 100% profit?? im trading both in the money and out the money options..
see = sell*
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Comments on Trading options questions? »
Its a lot diferent when you start doing it in the markets with real money
have you ever thought about diferent strategies
sounds like you are just gambling
and not being prudent
you need sound strategy for long term sucess
Maybe, but my guess is that you could not. I don’t know how good your virtual account is at simulating the real world, nor do I know how you are using it.
If your virtual account simply uses the “last” quote as the transaction price, you are unlikely to do as well in the real world.
I have seen a lot of people fool themselves (with either stocks or options) by looking at how much the price moves before it reverses direction, then assuming since they “could” have sold at the top they would have sold at the top. In reality you will rarely buy at the low or sell at the top.