Where do you sit on the option traders lifecycle? Are you a fetus, freshly conceived having just learned about this world of options, but having no idea what to expect when you get out there? Or are you a retiree, with loads of life experience, been through the ups and downs and are now just relaxing and living off your passive income from the market? Every one of us is at a different point in our options trading life; so where are you and what do you need to do to get to the next level?
Thinking you know more than you actual do is one of the worst crimes you can commit as an options trader. I have been guilty of this myself. When I first started out I thought I knew all there was to know about options. I thought I was an adult, but in reality I was little more than a baby, who could not survive on my own.
Fetus – Just conceived and have been introduced to this big bad world that is options. Maybe you read about it in a book or a newspaper, but this was the first day when you learnt about options. Can you remember that day?
Baby – You’ve entered the world but you still are 100% vulnerable. You need to rely on others for your survival and cannot perform even the most basic tasks by yourself. You have no idea how to open a brokerage account or place a trade.
Child – Not able to fully operate on your own, but you have more autonomy. You are starting to learn things and are increasing your knowledge. It seems each day you are learning something new and exciting. You’ve placed a few trades and are beginning to get the hang of things on a small scale.
Teenager – The most dangerous time in an option traders lifecycle and probably where most people reading this post find themselves. As a teenager, you think you know everything, are rebellious and break the rules. You take stupid risks and don’t think about the consequences. Does this sound like you? You make some bad trades and have some big losses and you don’t really understand how or why it happened.
Young Adult – You’re starting to mellow out in your old age. You take less risks and the risks you take are carefully thought out planned, and backed up by past experience. Alternatively, you have an active support network that you can ask for advice. Your trading is going well and you’re starting to make some consistent profits.
Family Man / Woman – You thought you had it all figured out and were cruising along nicely until the kids came along and through your world upside down. You might have some stressful times where you take some losses, but you’re able to bounce back pretty quickly due to your wealth of experience. All in all life is busy but good.
Retiree – You’ve been up and down some bumpy roads, but now you are just living the good life. Taking it easy watching sunset with a glass of vino and living off your monthly options trading income.
Take a look at the examples above and let me know in the comments below where you honestly see yourself on the option traders lifecycle.
I think I migrated from teenager to young adult sometime last month.
teenager for sure
Still a child…
Just got married.