Entries & Exits

Game of Numbers

Options trading is a game of numbers. To have confidence in a trading strategy you have to understand the long-term expectancy. Probabilities and position sizing are paramount.
Game of Numbers
Kirk Du Plessis
Apr 19, 2021

Gaining confidence with any trading system starts with a firm knowledge and understanding of the numbers. You have to see the end in sight to feel comfortable traveling the road to get there. When it comes to trading options, this business is about nothing more than probabilities and position sizing. In this video tutorial we'll explain why high probability trading requires a lot of trades (or occurrences) at small positions, similar to how a casino runs its business. Unfortunately, most people who get started in this business don't give themselves enough time to be successful, wrongly assuming that high probability trading works in the first month or even the first six months. However, you'll see why the longer you trade the more successful you will eventually become.

No tags found.
Next lesson
7 Step Entry Checklist
Here is a detailed breakdown of Option Alpha's 7 step entry checklist for filtering and entering new options trades.

Trade smarter with automation