The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question – “Why do options traders lose?” The simple answer to this is that all options traders lose at some point and what I mean by this is that all options traders will have a losing trade. In fact, if you find somebody that says they’ve never had a losing trade, please turn and run in the opposite direction as fast as possible. There is nobody in existence that has never had a losing trade that is professionally trading. What I find as being some of the culprits of why people generally lose overall, not just on a couple of trades, but overall after making lots and lots of trades, ends up being some of the very basic foundational elements that we’ve discussed previously here on this podcast. Things like position-sizing ends up again, being the number one reason why people lose on their trades. They’re over-allocated in a leveraged product which options trading contracts are leveraged