TRAITS THAT MADE LARRY SAVAGE JR A SUCCESSFUL STOCK OPTIONS TRADER

TRAITS THAT MADE LARRY SAVAGE JR A SUCCESSFUL STOCK OPTIONS TRADER

Options are one of the most versatile instruments in the financial markets.

Their flexibility allows the trader to leverage their position to boost returns.

These products also enable the user to manage risk by using them for hedging or profit from the upside, downside, and sideways movement in the market.

Despite its many benefits, options trading carries a substantial risk of loss, and it is very speculative. Not everyone can become a successful options trader.

Like any other business, becoming a successful options trader requires a specific skill set, personality type, and attitude. Here are some traits that made Larry Savage Jr. a successful stock options trader.

● He was Able to Manage Risk Options are high-risk instruments, and traders need to recognize how much risk they have at any point in time. What is the maximum downside of the trade? What is the implicit or explicit position concerning volatility? How much of my capital is allocated to the trade?

These are some of the questions traders always have to keep in their minds. Larry’s senses are highly hyper when it comes to managing risk. In particular, if you are a shortterm options trader, you will regularly come across loss-making trades. For example, if you hold a position overnight, your bet may go wrong because of adverse news. You need to be able to minimize the risk of your opinions at any time. In such cases, traders like Larry do so by limiting their trade size and diversifying into many different trades, so all their eggs aren’t in the same basket. Hence, the birth of all his other ventures. ● He’s Good With Numbers While trading in options, you are always dealing with numbers. What’s the implied volatility? Is the option in the money or out of the money? What’s the break-even of the trade? Options traders are always answering these questions. They also refer to option Greeks, such as the delta, gamma, vega, and theta of their options trades. In this context, Larry would want to know if his trade is short gamma. He is a good mathematician, so numeric is appealing to him.

● He was Disciplined To become successful, options traders must practice discipline. Doing extensive research, identifying opportunities, setting up the right trade, forming and sticking to a strategy, setting up goals, and forming an exit strategy are all part of the discipline. A simple illustration of deviating from the discipline is following the herd. Larry never trusts an opinion without doing his research. “You can’t skip your homework and blame the herd for your losses,” he said. Instead, he devises an independent trading strategy that works for him to be a successful options coach. ● He was Patient Patience is one quality all options traders have. Patient investors are willing to wait for the market to provide the right opportunity rather than make a big win on every market movement. You will often see traders sitting idle and watching the market, waiting for the perfect time to enter or exit a trade. The same is not the case with amateur traders. They are impatient, unable to control their emotions, and quick to enter and exit trades.

● He Developed a Trading Style Each trader has a different personality and should adopt a trading style that suits his or her traits. Some traders may be good at day trading, where they buy and sell options several times during the day to make small profits. Some may be more comfortable with position trading, where they form trading strategies to take advantage of unique opportunities, such as time decay and volatility. And others may be more comfortable with swing trading, where traders make bets on price movement over periods lasting five to 30 days. Likewise, Larry also has his one trading style best known to him and that is options trading.

Not only does he profit thousands of dollars per day, he teaches other aspiring traders to do the same. In fact, he is not hard to find. Look up Trade Gems on Instagram or any mainstream social media platform and you will see him doing what he does best, trading. There is something that he always says about what he does for the trading community… “What do I leave the world when I leave the world, if when I leave the world I take it all with me.”

Source Credit: https://larrysavagejr.tumblr.com/post/621986856952791040/traits-that-made-larry-sav age-jr-a-successful

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