Each month Option Alpha has seen it’s readership and members grow – which is great. As always, I’ve never done any advertising or marketing for this blog. I’d rather have it grow via word of month and social media which to me is “real” growth and not “paid” growth.
So thank you all and keep spreading the word!
As the website continues to grow, I’ll get more and more emails each week about a higher frequency of trading. It’s really starting to alarm me to be very honest. What is the big freaking deal with trading so much? More monitors, screens and trades doesn’t make you necessarily “smarter” or better at trading.
What are your thoughts on trading frequency? Do you think trading more often is a good or bad thing? Add your comments to this post and share your opinion.
More and more beginners think that trading more is cool or popular. Maybe they even think that trading more gives them more opportunities to learn more about the market but this couldn’t be further from the truth. The more you trade the worse you get – period.
For our Premium Membership we typically send out 3-6 alerts each month and try to keep fairly consistent. Instead of focusing on trading more positions, we do a lot of analysis followed by more analysis and then make a solid trade. Too many traders email me and talk about making 5-10 trades a day! That type of frequency is just not profitable long term. Just look at the number of day traders that either lose all their money or quit within 6 months of starting – the numbers are staggering!
Stop making more trades and start making better trades. Analyze more frequently and learn to control risk. Go back and learn from past trades you made that didn’t go well (I rarely see people do this one). If you focus on trading less and more consistent the profits will take care of themselves – our performance is living proof that 3-6 trades per month can be very successful.
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I’ve been told by tons of people that you’ve got to either have a lot of money or a really killer system to trade options and win. Some new indicator or signal that will transform your portfolio.
Honestly, there is no “magic secret” to trading options. It simply comes down to an understanding of risk management, option pricing and strategy selection.
Instead of learning these lessons the hard way (i.e. losing your shirt in the market), why not take my free 4-part video course as I cover each area in detail. Plus, I’ll go over the exact checklist I use for selecting trades each month!