95% Failure and Options Trading?

[RobinMeade 10]

It seems like most people are here to trade Forex or some kind of form of day trading. I saw the post about 95% failure (or maybe more) in Forex, does anyone know if the same ratio applies to Options trading? Or what is the failure rate? It seems like Options trading is safer to trade or am I totally mistaken?

[zdo 20]

Results <> 95%.

A few (~18% imo) can survive. A tiny few (1-3%) will thrive.

It’s system-dependent. It’s trader dependent.

 

Think of like this ... Actuary-ly, it is highly improbable that one will make a fortune (or even a good living) as a buyer of insurance policies (unless you have the kahoons to be an arsonist ). With options, sans reliable and enduring inside info, it’s tough to consistently and safely project the ETA of swans (of any color) over and over... just ask Taleb

 

Learning how to sell premium is no small feat either... requires authentic and serious Actuary-ly.

Most can’t even keep up with the greeks ... so have very slim chance of getting up even with greeks enough to learn how to manipulate and capitalize on them...

 

Contrary to the ‘risk is limited to premium paid’ voice of trading promotion memes, a more helpful, but absent, guideline would be - it takes rather massive levels of capital to buy or to sell premium successfully... Capital that for most could be similarly leveraged elsewhere for better and more stable returns ... Ie for most people option trading is ‘pushing a string’

(with the 'psychological' 'benefits'... that)

Statistically, options trading is a way to modulate the rapidity of the ultimate results - typically allows (the appearance of, at least of) a medium burn rate and dodges the alternatives - death by a thousand tiny ‘burns’ or a meteoric “sudden unexpected disassembly”.

 

hth

[barako 10]

95% failiure is some what close to the number people tell forex traders, its really all up to the traders if they are to exert enough effort to learn the trade then yes they will succeed sooner or later, and brokers should be choosen wiely like optiontrade is a good name in the industry today and others. just exert the effort to learn the ins and outs and traders should be fine.

[Taskin Ahmed 10]

I'm not sure about the %, but it's true that most of the Forex traders are loser. Because, maximum new Forex trader want to earn money without learning. Therefore, only few traders I mean knowledgeable Forex traders can make here consistent money.

[divyanshisharma 2]

You may have heard 90% or 95% of traders lose money, or some other seemingly high statistic. From what I've personally seen, this is accurate. While I traded for a day trading firm, about 10 people came in every couple months for trader training, or about 60 per year.