I do believe that making 100% a year is possible (full disclosure: in my best year, my returns were 61.92%). Some strategies are more complicated than others and some may have a more appealing risk-reward profile based on your own trading/investing personality, but understand this common denominator: the higher the return you seek, the more risk you're going to have to assume to achieve it.
And those big bad professionals? They really couldn't care less what strategies you employ.Īs I've said elsewhere on this site, trading options is essentially the trading of risk. There are no "secret strategies" or option trading secrets although there may be strategies you're not familiar with.
#JIM FINK OPTION TRADING PROFESSIONAL#
#2 - Any mention of "secret strategies" or references to strategies that professional traders or brokers "don't want you to know about" If a service claims (they usually merely suggest or imply to avoid their own legal hot water) that you can take a small sum like $1000 and turn it into $100,000 or better yet, an automated stream of monthly income enabling you to quit your job and live near a warm body of water, chances are it's a trading scam. It's an old adage, but a reliable one-if it sounds too good to be true, it probably is. Here are 6 warning signs that a trading service is most likely a trading scam: Remember the 3 crucial questions I ask of a valid options trading service? Well, consider the checklist below to be the inverse equivalent. They just have to have the capacity (or likelihood?) to lose their subscribers a lot of money. Option trading services don't have to engage in actual fraud for me classify them as scams. Trading Scams is a subjective term anyway. That keeps me out of legal hot water and enables you to apply the criteria listed below to any trading service you're considering using. “We don’t override the models.Although it's tempting to list specific option subscription services that I believe are trading scams, I've chosen instead to provide a checklist of what to avoid when considering subscribing to a service. But the principles we’ve discovered are valid.” – Jim Simons We may have bad years, we may have a terrible year sometimes. “The things we are doing will not go away. “In this business it’s easy to confuse luck with brains.” – Jim Simons “ There’s no such thing as the goose that lays the golden egg forever.” – Jim Simons “We have three criteria: If it’s publicly traded, liquid and amenable to modeling, we trade it.” – Jim Simons If gold is discovered, then it gets harder to make money mining gold because everyone’s competing with you.” – Jim Simons The attractiveness, of course, is that you can make more money successfully predicting a stock than you can a comet.” – Jim Simons “One can predict the course of a comet more easily than one can predict the course of Citigroup’s stock. And pondering things, just sort of thinking about it and thinking about it, turns out to be a pretty good approach.’ – Jim Simons I wouldn’t have done well in an Olympiad or a math contest. “The system is always leaking, and we keep having to add water to keep it ahead of the game.” – Jim Simons “Past performance is the best predictor of success.” – Jim Simons However, they’re close enough to random so that getting some excess, some edge out of it, is not easy and not so obvious-thank God. “Patterns of price movement are not random. “We search through historical data looking for anomalous patterns that we would not expect to occur at random.” – Jim Simons Here are some of his top trading quotes that distill some of his wisdom: Renaissance offers two portfolios to outside investors-Renaissance Institutional Equities Fund (RIEF) and Renaissance Institutional Diversified Alpha (RIDA).” via Wikipedia From 1994 through mid-2014 it averaged a 71.8% annual return. “Renaissance’s flagship Medallion fund, which is run mostly for fund employees, “Is famed for one of the best records in investing history, returning more than 35 percent annualized over a 20-year span”. His net worth is currently estimated at $21.5 billion. Jim Simons was a mathematics professor from 1968 to 1978, and chair of the mathematics department at Stony Brook University. He contributed to the development of string theory by providing a theoretical framework to combine geometry and topology with quantum field theory. Simons primary models were on pattern recognition. His hedge fund specializes in systematic trading using quantitative models derived from mathematical and statistical analyses. He is a quantitative investor and the founder of the hedge fund Renaissance Technologies. Jim Simons is a hedge fund manager and a mathematician.
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