Why do we need a research center lab for trading options with all those option trading schools and option trading funds? This simple question deserves honest and the most possible simple answer. That is psychology. What is the biggest barrier for trading markets successfully? Our psychology. Our evolution process has given us tools for fight and escape in the jungle, but Wall Street is highly regulated place. Your fears will not help you to escape, rather than making emotional decision. This is it. Nowhere to go. Your jungle instincts have evolved slower than your learning anxiety. Take it or hate it.
So, what is psychological barrier of option trading school and courses? They must claim that highly profitable option trading strategies are simple and easy, so anybody can learn it fast for small (or large) fee. They are not. Would you believe that fancy looking charts designed for rookies can beat highly sophisticated methods handled by Ivy League leaders and other brainers hired by Wall Street firms though their highly developed psychological filters? It happens occasionally but in long term run is more exception than confirming the rule. Oh, well.
Agreed. But why option trading funds can not do the work for the most profitable methods? The answer is the same. Psychology. Your clients (investors as you wish) are not professional option traders. If they were, they would not bother with risking your capital for trading with you and paying you commission. Agree again. But what is the effect of trading your client’s capital on the option trading outcome? This answer is simple as the other one. Pressure for profits. Your clients are not James Bond-know all type. Any profit is welcome, and any loss is giving them tremble. This is reality of fund managers: risking somewhat more to receive upbeat performance or scalp a piece of it to go little over your benchmark.
Please read our Legal Disclaimer.