{"id":37725,"date":"2014-05-22T16:27:39","date_gmt":"2014-05-22T20:27:39","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=37725"},"modified":"2023-08-01T19:37:22","modified_gmt":"2023-08-01T23:37:22","slug":"why-options-traders-may-have-the-better-mindset","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/why-options-traders-may-have-the-better-mindset","title":{"rendered":"Why Options Traders May Have the Better Mindset"},"content":{"rendered":"<p>After fifteen years trading equities the insight hit me like a sledgehammer\u2026<\/p>\n<p>A casual conversation with John Locke turned into one of those movie scenes where the actor wakes up from a deep sleep with a new mission.<\/p>\n<p>In my case it was a new thought process of how traders actually earn money. Now keep in mind here I am not talking about how to place trades but how to get paid. To put it bluntly, this seemingly innocent comment John tossed at me rocked my world.<\/p>\n<h3>The Outcome Is The Same, But The Mindset To Get There Is Drastically Different.<\/h3>\n<p>&nbsp;<\/p>\n<p>Equity trading is about price, stop-loss and profit targets. Options trading is about a time frame and windows of opportunities. Forty Five days and a price range between $150-$190; for example.<\/p>\n<p>When you enter a new equity trade, your focus is on your entry price and your P and L. You are focused on static points and an undefined point in time for the trade to create opportunity or loss.<\/p>\n<p>\u201cStatic and undefined\u201d leaves a lot of room to get antsy about the result.<\/p>\n<p>Here is the difference that John made me realize: Options trades are designed from the start to know how the ending looks and how long you have for that ending to happen. And it gets better. Most options trades have a window of opportunity within which they will earn money in a trade and multiple scenarios to earn a profit. In equities trading, you make a directional call. That\u2019s it. One scenario and only one scenario makes a profit.<\/p>\n<p>And it gets better. John explained that the trades that he employs have predetermined trade built into the trade management. He is expecting to need to adjust the trade. As long as the stock or index trades within a window of prices, within a certain time period, the probabilities are on his side.<\/p>\n<h3>Why This Is a Dramatic Difference<\/h3>\n<p>Options trading, as John teaches, focuses on holding and adjusting to the end. Hold and adjust for a certain designated time period, within a \u201cprice tent.\u201d Its brilliant. The focus is on the end goal and adjustments are expected and planned. \u201cWe work the trade in a price range and adjust the window if necessary until the trade duration has expired.\u201d<\/p>\n<p>I have made too much money trading equities to say that options trading is \u201cbetter\u201d as John teaches and trades. I am, however, saying that multiple potential outcomes to earn money and a focus on the end is a seismic shift in trade management.<\/p>\n<p class=\"p1\">\n<p><strong>Learn the Process from John Locke<\/strong><\/p>\n<p>Sometimes good ideas can get lost in translation. I recommend you hear the insights from John himself at his next live event on May 29th. See if you agree with me.<\/p>\n<p><a href=\"http:\/\/www.cboe.com\/resources\/intro.aspx\" target=\"_blank\" rel=\"noopener\">Risk Disclosure<\/a><br \/>\nNo relevant positions<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After fifteen years trading equities the insight hit me like a sledgehammer\u2026 A casual conversation with John Locke turned into one of those movie scenes where the actor wakes up from a deep sleep with a new mission. In my case it was a new thought process of how traders actually earn money. Now keep in mind here I am &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/why-options-traders-may-have-the-better-mindset\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":290,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3926,3956,2063],"tags":[151,4683,3962,2941,55],"class_list":["post-37725","post","type-post","status-publish","format-standard","hentry","category-john-locke-3","category-m21-trading-system","category-smb-options-2","tag-market","tag-options","tag-successfully","tag-timing","tag-trade","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Why Options Traders May Have the Better Mindset | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/why-options-traders-may-have-the-better-mindset\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why Options Traders May Have the Better Mindset | SMB Training\" \/>\n<meta property=\"og:description\" content=\"After fifteen years trading equities the insight hit me like a sledgehammer\u2026 A casual conversation with John Locke turned into one of those movie scenes where the actor wakes up from a deep sleep with a new mission. 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