Is Option Trading Gambling?

| Total Words: 661

We have seen it way too often, havent we?

Advertisements that tout making thousands of percents in profits within days and millionaires made within weeks, all by option trading! Such advertisements usually draw hordes of hungry, indebted gamblers who need that one big win to recover their debts or losses elsewhere to their unusually expensive seminars.

95% of those who walked into such seminars, paid for it and actually traded options, lost all their money. 3% will make some money within the first few trades and then lose it all subsequently. 1% will really make some sustainable money and a final lucky 1% will make the 1000% a month on their first month (again, just to lose it all within the next month). Anyone who has been in this predicament usually think that option trading is nothing more than just a gamble on an instrument that has no value of its own.

Yet, many professional traders and fund managers are making a good, consistent profit from option trading! These professionals dont make 1000% a month in profits, neither will they ever, but they continue to make a living in the markets month after month, year after year (me included)!

So, what...

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