We're all somewhere on the learning curve and it never ends. You really need to consider a rate of return on capital at risk. $4K or $10K is irrelevant, it's the risk and the rate of return. Van Tharp is worth reading on this topic.
The "catch" is that trading is a professional business -- making the transition from hobby trading is the challenge of taking any avocation to be a vocation. Education, experience, discipline and determination -- in my experience there's no catch, no secret, no "Holy Grail" -- just good, old-fashioned work.
Set yourself a curriculum and some near terms goals. Paper trade to develop technical skills, then prepare for the psychological transition to real money at risk. You're looking at months of work assuming you come to table with better than room temperature IQ and above average mathematics. I recommend starting very small size and high probability trading -- the temptation is intraday trading, but I think this is a gamble. I'd prefer to see someone start with a small "tool set" of slow-moving technical trading (calendars, verticals.)
At the same time, you'll be studying trade management, position management, capital management and risk management. These all tend to travel by different names and philosophies. The objective is to develop and refine a trading system encompassing all these necessities. Start with a trading plan and build out.
There's been several recognized authors and their books mentioned here and in other email lists.
You have to become a student of the market -- studying and learning market, its internals and its motives.
Setting a goal of $4000 per calendar month is the cart before the horse. : )
Cheers,
On Thu, Jan 7, 2010 at 11:28 AM, praesto12 <Praesto12@yahoo.com > wrote:
Are any of you guys consistently making 4,000 to 10,000 a month trading options?Trading options to make money seems too easy. What is the "catch" ? what do you have to do in order to trade and make consistent profit??Richard
From: Adam Green <adam.cell.phone@gmail.com >
To: OptionClub@yahoogroups.com
Sent: Tue, January 5, 2010 11:50:46 PM
Subject: Re: [TheOptionClub.com] May I ask?
On Tue, Jan 5, 2010 at 5:21 PM, allen <allen2462001@ yahoo.com> wrote:
>
>
>
> In starting off in a "New Year" 2010, I have decided to ask as many question that one is allowed :)
You're over your limit.
: )
>
> To learn from each of you.
>
> Are there perimeters about asking questions on here..
I'm pretty new "here" myself, but I've been involved in email lists
since the late 80's (yes, it was a tad different back then.)
I think the golden rule is that there are no stupid questions, only
stupid people.
Kidding!
--
Adam
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