Stock Option Trading Secrets

Everyone knows all the stock option trading strategies. Everyone has access to fast real-time quotes and computerized trading software. Everyone knows the current stock market trend, but only a small precentage of wannabe traders end up becoming consistent big winners in the stock market.

Blindly applying specific stock option trading strategies based on theoretical returns or mathematically calculated "fair values" will only lead you to shocking disappointment, and losing your money.

Always remember you are trading against other human beings, whether or not they use sophisticated computer trading platforms and systems.



Over the years I've developed a set of real-world trading concepts, which apply not just to stock option trading but also to stock trading. Without aggressively applying these stock option trading secrets I've found that I do not consistently succeed, no matter which option trading strategies I employ.

With these stock option trading secrets I continue to pleasantly surprise myself with positive results. The surprise comes from the fact that they are often counter-intuitive to the way the market "should" behave right now on a fundamental, technical or psychological basis. They are based on continuous empirical observation, not on theoretical calculations of back-tested data.

Behavior Rewarded Recently ("BRR") refers to the type of trading decisions that have proven immediately profitable in recent market action. For example, if the market has consistently rallied strongly in the last hour of trading, Recognize it, Accept it, and Embrace it. Patterns often repeat many times before they stop repeating, at which time you should stop trading off them.

Current Manipulation Pressure ("CMP") is either up, down, or trading range. Without recognizing this, regardless of whether you want to believe in "manipulation" or not, you will be trading options at a huge disadvantage.

For more of these market awareness concepts, refer to my summary of stock option trading secrets (Current Indicators). You must understand and apply both these secrets and the strategies to succeed. You can learn to do so by carefully studying my entire site, where I weave together the theory and the practice based on my real experience.

The specific option trading strategies in and of themselves are not sufficient to generate consistent profits for you. They are merely sharp tools for profiting from your superior understanding of the current market situation.

It is a mistake to focus on any one particular strategy unless you apply it only when circumstances favorable to that strategy are present. It's better to first be sure you are in tune with the current market environment, then select the strategy most likely to succeed right now, even if it's not your favorite strategy.

I suggest you study these market awareness concepts as carefully as you do the basic stock option trading strategies. By remaining flexible, open-minded and in tune with current market conditions, you can win -- and win big.