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Mooers Lab joined discussion · May 22 03:25

Mooers' Stories | My journey into options trading @CasualInvestor

Options trading to me is like buying insurance for unforeseen outcomes.
Hi, mooers. Welcome back to Mooers' Stories, where we present mooers' insights and experiences from our community. 🎤
Today, we're thrilled to bring you a special post on options trading with @CasualInvestor.
He will share his journey from a novice to a proficient options trader, delve into strategies, and offer advice for beginners.
Dive into the post and join the discussion below, where @CasualInvestor will answer your questions in the comments section.
Mooers' Stories | My journey into options trading @CasualInvestor
Mooers' Stories | My journey into options trading @CasualInvestor
Mooers' Stories | My journey into options trading @CasualInvestor
🎤 When did you start investing?
I got into the game quite late.
During the COVID-19 pandemic, the global economic situation was bleak. I thought: perhaps I should make my money work harder for me.
Moomoo was the first platform I officially started trading on. Coincidentally, in 7 days, it will be my 777th day using moomoo, which feels like a lucky number.🎰
🎤 How did you get into options trading, and why?
My journey into options trading started from a desire to have more control over my investments.
It took me a year or two to grasp stock trading, including fundamental and technical analysis methods. As my investment knowledge deepened, I was no longer satisfied with just investing in stocks. I wanted more control, which led me to learn about options.
Now, I can confidently say that I know when to add options to my trading portfolio, which options to choose, and how to use option strategies.
🎤 What are your main strategies in options trading?
There are different strategies for being a buyer and a seller in options trading.
Being an options buyer is relatively safer. If I anticipate a price drop, I'll buy put options, and if I expect an increase, I'll buy call options. Of course, this is basic knowledge. In practice, I find another important consideration, "time." As time passes, options prices can change dramatically, so it's best to buy when options are cheap (comparing different strike prices and Delta values).
Being an options seller entails greater risk and opportunity. I prefer to be an options seller when holding the underlying stock. This is because when the price exceeds the strike price, the options seller must sell the stock at a specific price to someone else. If I hold the underlying stock at that time, the overall risk is lower.
Additionally, transaction costs must also be considered. When calculating my profit margin, I always include commissions and other fees.
In summary, being an options buyer can hedge risks, while being a seller offers the potential opportunity for income. For me, option trading is like buying insurance for unforeseen outcomes.
🎤 How did you develop your expertise in this area?
Videos posted by investors are excellent learning materials, especially when some investors directly present their trading charts and explain their operations and strategies based on their trading objectives.
🎤 Can you tell me about your typical trading days?
Due to the time difference with the United States, nighttime is the main battleground for my trading. I usually start monitoring pre-market fluctuations about an hour before the opening bell. I often stay up late into the early hours, monitoring market changes and making decisions. This has become a routine for me. But for me, being able to immerse myself in the ups and downs of the market is a joy.
During the day, I often discuss trading strategies with friends, and I also enjoy posting my trading notes on moomoo, recording my experiences and lessons learned. Constantly reviewing allows me to grow and improve.
🎤 How do you typically select stocks?
After numerous trials and experiences, I've developed my current stock selection preferences.
I've tried trading various stocks, including penny stocks, and I've even bought stocks that were priced at just a few cents per share. Through this process, I found my comfort zone. I discovered that I'm not particularly fond of buying low-volume penny stocks; instead, I lean towards purchasing high-value, highly liquid stocks.
Additionally, I prefer to trade stocks of companies that I trust. I believe in trading in stocks that are from companies that I believe in.
🎤 How do you decide when to take profits or cut losses?
I stay informed about significant events and economic data in the market, such as FOMC meetings, and more. Based on my understanding of the market, I preset price and profit fluctuations, and set stop-loss and take-profit points in advance. This way, even when I'm asleep, I don't have to worry about losing a lot of money.
🎤 Could you share your best and worst options trades with us?
I'm quite pleased with my recent options trading on Apple."I used the money I earned from trading Apple stocks to buy myself a real Apple Macbook.
The worst trade I made was when NIO went public in Singapore. I didn't know much about the company, but my friends were all excited about it, so I followed the crowd and bought some options that expire in 7 days. However, shortly after, I went on a cruise trip where internet signals were poor. Due to the lack of thorough consideration and timely market follow-up, I ended up losing money when the option expired.
🎤 What's your favorite feature of moomoo?
I really enjoy playing the Up and Down game on moomoo. It allows me to predict the price movements of stocks like Tesla, Apple, AMC, S&P500, and more using moomoo points. Sometimes, I earn thousands of points. Playing the game doesn't require real money, but it helps me stay alert to the market and keeps my trading instincts sharp, which is very helpful for my options trading.
Additionally, I love the customizable chart feature on moomoo. I use my favorite colors to customize the indicators I like, such as RSI and KDJ. I use a prominent gold color to remind myself when it's a good entry opportunity.
Mooers' Stories | My journey into options trading @CasualInvestor
Mooers' Stories | My journey into options trading @CasualInvestor
🔑 Words for newcomers
Stick to the buy side
Understand more about options Greeks
Always plan for the stop losses
Mooers' Stories | My journey into options trading @CasualInvestor
Interactive Activity
Spark meaningful conversations
Topic: What else do you want to know about @CasualInvestor? Any other topics you wanna discuss with him? Comment below to let us know.
Rewards: 30 points for mooers who raise insightful and CasualInvestor-related questions
Time: From now to June 30, 23:59 ET
(Moomoo Points may be redeemed only through the moomoo app and have no other value.)
Notes: We encourage benign and in-depth interaction, from which all mooers can learn from each other, helping our community members be more courageous and not alone in their investing journeys.
We truly appreciate @CasualInvestorfor sharing his valuable and inspiring experience with us! Feel free to interact with him if you have anything to say!
Just in case you didn't know, you can also be the one to tell the story! Interested? Comment below to let us know! We'll reach out to you as soon as possible!
Thanks for your time. See you next time!
Image source: Provided by CasualInvestor
Image source: Provided by CasualInvestor
Notes: All information comes from the interviewee and is published with the interviewee's consent. The testimonial provided herein may not represent other customers' experience, and does not guarantee future performance or success. Your experience may be different than the ones represented here.
All contents, such as comments and links posted or shared by users of the community are the opinion of the respective authors only and do not reflect the opinions, views, or positions of Moomoo Financial Inc., Moomoo Technologies, any affiliates, or any employees of MFI, MTI or its affiliates. Please consult with a qualified financial professional for your personal financial planning and tax situations.
Disclaimer: This presentation is for information and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. See this link for more information.
Options trading is risky and not appropriate for everyone. Read the Options Disclosure Document (j.us.moomoo.com/00xBBz) before considering trading. Options are complex and you may quickly lose the entire investment. Certain complex options strategies carry additional risk, including the potential for losses that may exceed the original investment amount. Customers should consider their investment objectives and risks carefully before investing in options. Supporting documentation for any claims will be furnished upon request.
Any illustrations, scenarios, or specific securities referenced herein are strictly for illustrative purposes and not a recommendation. Past investment performance does not guarantee future results. Investing involves risk and the potential to lose principal.
Please consider that users will have different risk profiles, financial understanding, financial objectives, investment time horizons and tolerance for potential losses and they should consider these factors when comparing performance, advice or recommendations from other users.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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