The beauty of option trading is the versatility it offers, this often leads to the introduction of complexity into ones trading.
If you look around the trading world, the books on option trading or any traders trade book, you will see a huge range of option strategies. The question is, is this the successful way to make money in option trading?
One reason could be the love of mathematics and the illusion of logic that it offers. The other is to give a sense of expertise, a false sense of expertise, that complexity offers. The most common reason is the lack of a sense of direction or the market trend.
The opportunity that a sense of the market trend offers is lost in the complex strategies implemented.
The lesson I have learnt in my years of trading and teaching option trading is that simplicity is a difficult art to master. But if you master the art of keeping your trades simple and keep a sense of the trend in mind, the supports and resistance levels, and the herds movement you can come out on top more often than the others.
The next time complexity enters your trades, stop and think.
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