Why do most option traders/buyers lose money?
I can’t prove my opinion with statistics and documentation, however, in having worked with thousands of traders over the past 10 years we believe the biggest reason why most traders lose money trading options (or any kind of trading) is they bet too big on a single trade, a trade that they feel is a sure thing. When that trade doesn’t work out they have lost all or most of their money. Trading options isn’t Texas hold-em and you should never go all in on a single trade. You may in the end be right about the trade but may not have purchased enough time and still end up losing all or most of your money. You must always use proper money and risk management when trading options, or any kind of trading for that matter.
