40 - Option Spreads: Pawn Tickets By Greg Donio

An extract of an article from Traders World Magazine issue #40

Option Spreads: Pawn Tickets
& Trojan Gold

By Greg Donio

Occasionally my mind’s eye sees the color of bronze. It envisions a bronze plaque bearing words of wisdom that should hang on the wall of every financial trader. The words change from time to time because there is more than one quotation— candidate that would really fit. Right now the one most worthy to be etched in metal appears on page 204 of David L. Caplan’s book The New Options Advantage where he quotes Gil Blake:

"Traders lose because they don’t have a winning strategy. Second, even among those traders who do, many don’t follow the strategy. Trading puts pressure on weaker human traits and seems to seek out each individual’s Achilles heel."

That latter sentence should be engraved in bronze and. tattooed on the skin of traders.

Many a horse—player has said, "I wish I could make out like a bookie. He gets most of my money anyway." Such envy from the multitudes of the empty-pocketed makes sense but fails to take a closer look at the differences between he who has the "weaker human traits" and he who makes money off said traits. Specifically, the horse—player craves instant riches while the bookmaker aims for realistic profits. Summed. up on a bronze plaque upon a speculative trader’s wall the advice would be, "Trade for a living, not to get rich overnight."