Kathy Chaffee was a GlobalTec customer before accepting the challenge of being a national trainer and now a training specialist for Wizetrade for Options. Kathy shares over a decade of options trading experience. Traders from every walk of life appreciate her ability to simplify the complicated aspects of options trading into strategies that are applicable to individual investors of all skill levels. Kathy also plays a large role in the development of the Wizetrade for Options training materials and enhancements to the software. Tune in to In the Money and Greek Speak to hear Kathy’s keen market insights and training tips.
I always compare learning options to learning how to drive. If you only focus on all of the complex mechanics of a car and all of the dangers of navigating through traffic, you might never enjoy the rewards and freedoms of getting from point A to point B. We can break driving down into the steering wheel, the gas pedal and the brakes. Now we have a vehicle to navigate through red lights and green lights. In options, we can teach a few simple concepts including the Delta and Days Til Expiration, and also navigate through the red selling pressure indicators and the green buying pressure indicators. Obviously, if you have ever seen a teenager driving, or a trader trading without a plan, you know that you must also teach a healthy respect for the risks that come with learning a new skill. Start simple, learn one strategy at a time and always maintain a respect for the market.
I am always humbled by the simple phrase, “Thank you.” Beyond that, I really enjoy it when someone calls or writes in and says that they heard me talking to someone else, and they were able to successfully apply that knowledge in their own trading. I know then that I have hit on something that appeals to more than just one person. Not everyone, for whatever reason, is able to call into the shows, so when I help someone find a solution that many can use, that is huge!
I think the hardest aspect of trading is admitting when you have to accept a loss. The challenge of identifying a realistic stop loss and maintaining the discipline to sell at a loss can be wrenching. To chalk up a loss only to have a stock turn around and soar in the desired direction is gut twisting, but to allow one loss to continue to the point of wiping out your last 5 or 10 winning trades, all the while hoping that it will turn around, can either be a lesson well learned or portfolio ending habit. Look to your favorite professional athlete for clues on how to lose one game, but have the self-esteem to go on to be a successful champion at the end of the season.
My mantra for 5 years has been, “focus on one strategy at a time until you get bored with making money.” I have regretted every time I have broken this mantra and been seduced into trying the latest popular strategy that seems to work for everyone but me. Each strategy takes a learning curve that usually doesn’t start out as successful until you learn some of the nuances of the strategy. I am currently working on actively trading the QQQQ’s and am lucky enough to have some sensational customers learning along with me. I am not bored yet, so I will continue to search for that Holy Grail of trade plans!
I love all kinds of music! I love old soul music (Aretha Franklin), folksy heart-tearing Country & Western (Willie Nelson, Bonnie Raitt), sing-along 80’s (James Taylor), classical and jazz. I will even tolerate move-and-groove a bit to whatever it is my boys listen to on the radio on the way to school, although I can’t tell what the words are. After all, my family is everything to me.
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