Why do most options traders fail?

The number one reason why most options traders fail is they rely solely on market timing for success. If you're using options simply as a leveraging tool to make more money on the predicted movement in a stock or index, you'll have many trades go in your favor and from time to time you'll experience fantastic gains.

clarkfinancial.com - Why Most Options Traders Lose Money

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Make Your Bookie Cry And Pull The Hair By Generating $23,187

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The number one reason why most options traders fail is they rely solely on market timing for success. If you’re using options simply as a leveraging tool to make more money on the predicted movement in a stock or index, you’ll have many trades go in your favor and from time to time you’ll experience fantastic gains. However, if you’re simply buying calls or puts based on what you expect the underlying stock to do, your odds of long term success as an options trader are very limited. There are two main reasons why this options trading strategy is unlikely to make you money over a long period of time. First of all, accurately picking tops and bottoms is difficult at best, especially to do it on a consistent basis. Second, and more importantly, the movement of an option, and its underlying stock, aren’t always proportional. In other words, you can be correct on the direction of the stock, and yet not make much money. In some cases, you will even lose money on your options. Those who lose money, even when they were correct on the direction of the stock, do so because they don’t understand how implied volatility and time decay affect the price of options. Time decay is easy to understand. Your option expires on a finite date. Each day that passes, the option loses some of its extrinsic value that’s related to time. So, if you’re right on the direction of movement, but the movement is slight, and over a long period of time, you may lose money on that trade. Understanding implied volatility is a bit more complex, and a lot more critical to your ability to make money as an options trader. The main thing to remember is other that buying an option and then having the implied volatility drop will harm the price of your option. To learn more about implied volatility and how it affects the value of options contracts, click here.

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What kills a condor?

Though lead poisoning, microtrash, and electrocution are the main threats to condors, other impacts also threaten their recovery. These can include collisions with cars when condors are feeding on roadkill, rodenticide poisoning, and eggshell thinning due to DDE.

nps.gov - Threats - California Condors (U.S. National Park Service)

This is a radiograph of a condor that consumed lead ammunition; you can see one large fragment and a few smaller pieces of lead above it. The pullout photo is the actual fragment that was removed from the bird. Ventana Wildlife Society

Lead Poisoning

The biggest threat to condors today is lead poisoning. When a gun fires lead ammunition and it hits an animal, the soft metal breaks into many small fragments that spread beyond the wound channel. When scavengers such as condors feed on these remains, they inadvertently ingest the lead fragments. If scavengers eat enough lead, it poisons them and they can die. Lead ammunition is commonly used in hunting and ranching operations in landscapes that are home to condors and other wildlife. Hunters often field-dress their kills, leaving gut piles behind when they take their meat home. These gut piles (and the meat itself) often contains lead fragments, even if hunters try to remove the largest pieces of the bullet. Additionally, depredation hunting (the practice of shooting “nuisance” animals such as feral pigs, ground squirrels, etc.) is common on ranches, and results in whole carcasses being left out for scavengers to consume. Hunters are important conservation stewards. When they use non-lead ammunition, they carry on the proud tradition of protecting wildlife and ecosystems as a whole. Although condors are one of the species most commonly associated with lead poisoning, other species killed by lead ammunition poisoning include bald eagles, golden eagles, hawks, ravens, turkey vultures, and grizzly bears. Please visit www.huntingwithnonlead.org and the Pinnacles National Park lead information page for scientific studies and more information on the threats of lead to humans and wildlife.

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