Comments on: Eye Surgeon Lost 15k USD in Options Trading

By: reventon

reventon — Wed, 13 Apr 2011 15:22:55 +0000

Dude, the guys a doctor,not a trader.
How does that make him a veteran?

By: James

James — Sun, 25 Apr 2010 05:18:49 +0000

The thing about options trading is that it requires a lot more knowledge than properties, stocks and any derivative instruments that have ever been invented. Don’t let those seminars tell you how easy it can be. Learn for yourself for free at http://www.optiontradingpedia.com and see how vast options trading is.

By: 5m10y

5m10y — Fri, 19 Sep 2008 22:42:17 +0000

I say he got greedy and didn’t do proper money management.

By: neo

neo — Fri, 19 Sep 2008 15:31:44 +0000

he must be an idoit that do not do proper research, read news and know how to read indicators properly, and psychologically not prepared to trade. In trading, psychology is the key. 80% – 90% in trading depends on psychology.

By: Sam

Sam — Tue, 05 Aug 2008 08:11:58 +0000

The more highly leveraged a product is, the greater the risk, and options are at the very highest end of the leverage spectrum.

Property in SG, might be a shrewd and straight-forward investment but it requires high initial capital that not everyone may have access to and there are many barriers to entry, while options are highly liquid and easily tradeable.

They were invented to hedge large long exposures, then evolved to take speculative positions, and now to the frenzied approach of “easy money” we have today. Quick returns are great, but not so easy to sustain in this volatile environment. The Black-Scholes option pricing model is not able to price in forward looking volatility and investor irrationality!

If you are a serial gambler and cannot help yourself taking a punt, do cash equities instead… you risk relatively less.

By: Wayne

Wayne — Sun, 20 Jul 2008 19:21:02 +0000

You can’t really decide that it has been a bad investment only after you have done it, and very badly at it. Vice versa for the good investments.
That’s why it is important to do asset allocation. One rule of thumb is to limit any exposure to a narrowly-focused asset/sector to no more than 10%.