Trading for a Living
Hobby or Career?
Trading for fun and trading for a living are two very different things. Typically, those who trade as a hobby do it purely for fun and are only interested in breaking even. It's not quite that simple when you trade for a living, when your livelihood is based on how profitable you are. In my trading room I trade every day properly with predefined risk-versus-reward setups, and not just on feel. If I could tell every single person in Las Vegas who is hitting a 13 in blackjack against a dealer 6 that they are betting improperly, then I would have done a great service. I can never tell traders in my trading room that they will be profitable, but I can tell them that they will learn how to trade properly, manage risk, and set up good risk-versus-reward situations. If you are otherwise employed, and your budget allows, options trading can be a very entertaining hobby on which to spend your time. I do it as a career as it is my only source of income.
■ Trading for Amusement
If you trade for fun, make sure you choose assets for your solid portfolio that are somewhat worry-free. You can't have your heart and mind involved in the wild swings of fortunes in options trading if you are worried that the majority of your money is at risk. The best way to trade for a hobby is to make sure it stays fun and never risk any money you can't afford to lose. Too many people try to trade with money they can't afford to lose. No trader should ever be trading ...