Regarding this article, I refer to the original article “Make A Living From Trading”. It describes an Indonesian author’s trading journey and how he makes money (living needs) with options. This is a very useful share for those who are new to trading and see it as a career for a living. Let’s go into the real story of a real man together.
I have been trading options for 3 years and have been quite successful with it. So, I hope this article will be of help to new traders. It is to keep them from making the same mistakes I made before to get to the finish line fast.
I do not intend to sell or advertise any products. I have made enough money. Therefore, instead of spreading hate on this article, try to learn from my experience. Maybe, I’m helping you avoid losing a lot of money making those mistakes.
Bhalisa i- IQ Option futhi uthole amahhala $10,000 Risk warning: Your capital might be at risk.
Is it possible to trade for a living with options?
Yes! Definitely! I am living proof of that.
And how?
Step 1: Look for a reputable broker (like IQ Option).
Step 2: Find a strategy that works in the long term (you can find all of these in this blog).
Next to step 3: Learn how to control your emotions, discipline, and plan your strategy thoroughly.
Step 4: Trade like a businessman. It will take a lot of time and effort. You will not be able to become a millionaire overnight as rumored. And you may not be able to make a profit every day. You may incur losses. The key to success is to make more profits than losses.
What is the best time frame for trading options?
It’s not important. 60 seconds, 5 minutes, 15 minutes, etc., are not much different in my opinion. Many people say large time frames result in better trading. In my opinion, it is better for new traders with little experience on the battlefield whose psychology is not stable.
As for my own experience, it is not like that, the long or short time depends on the trading strategy that you build. Each strategy has the best trading time frames which are completely different. You can assess it yourself. I usually enter a trade of 5 – 30 minutes on an M5 chart. Because it gives me more time to better prepare for my upcoming trade.
Notes: Prices often move in patterns that appear on all time frames. Therefore, the time frame, in my opinion, is not as important as the trading strategy.
Strategy
I am not sharing with you exactly the strategies I use. However, I will point out the trading style that helps me to be profitable in the long term.
What is the profit rate of a strategy which is enough to trade?
If the payout rate is 80% or more, you only need a 56% ITM (in-the-money) to make a profit. I would dodge sessions with a payout rate that is lower than 80% (e.g Asian session in IQ Option).
This is because I don’t think they are worth my money risking with an extremely unfavorable win rate. Therefore, look for a broker offering plenty of time frames with a moderate payout (between 80 and 85% is reasonable). That would be a big advantage for options transactions.
As you can see from the analysis above, we need an additional 6% win rate in the first place to be able to make money.
So the question is how to increase 50% to at least 56%.
The answer lies right in front of our eyes. Everyone who trades long enough would know the answer.
That is…
Trend
That’s right, the trend. Most trend-following strategies can give you a win rate of 56% to 75%. This is a testament to the saying “The trend is my friend”. The trend is a good friend when it comes to making us profitable by following it.
When I started trading, almost all the strategies I used were reversal ones. I used a lot of such strategies and lost a ton of money. Trust me. It’s really not profitable with the reversal strategy. It is very easy to lose money.
So, the experience is to avoid using reversal trading strategies. It’s not worth a try without being able to make you profitable. You can make a profit in a few weeks or more. But in the long term, it will burn your account.
The trend is a true best friend.
It is not nonsense! So I want you to find a trend trading strategy. Find or build such a strategy for yourself.
Now is the most important time. Demo! Demo! And demo! This is when people are most likely to go wrong. They see a strategy. They check to see if it is “good”. Test it. Lose some trades. Then quit and find a new strategy as they think it doesn’t work. The loop goes on repeating.
Instead, I advise you to find a trend-following strategy, stick to it, and improve it over time by testing to develop the perfect money-making strategy for you.
In conclusion
Stay away from reversal strategies that don’t make you money but just make you lose more money. Only trade with your best friend – TREND.
Only trade with a payout of 80% or more.
Be patient! Stay disciplined!
That is enough to form the current ME who makes a living by trading options.
Bhalisa i- IQ Option futhi uthole amahhala $10,000 Risk warning: Your capital might be at risk.