Glory to GOD - another profit!
This is just a great trade, got in the trade and the next trading day, the target is hit. Doesn't get much better than that.
I bought the option for $1.92 and sold it today for $2.20 for a profit of $0.28 and an ROI% of 14%.
These ROI% and profit may seem small, but you must understand the numbers. I trade a small account (for now - yes, it's growing, so someday I won't be able to say this), so I'm only buying 1-2 contracts at a time in order to keep my risk low and manage my portfolio in a safe way. The last thing I want to do is load up on contracts and risk a large percentage of my account in any one trade - because the market CAN DO ANYTHING AT ANYTIME and I don't want to be "all in" and get clobbered.
These ROI% do apply to any account size, which is why I concentrate on ROI%. If I had purchased 10 contracts instead of 1, then I would have still made 14% ROI, but my profit would have been $280.
Also, you have to trade based on edges and consistency. Think of it like baseball, the BEST of the BEST get around 3 hits out of 10 times at bat - those hits include simple base hits - not all home runs.
OR, you can think of it like a casino. The casino makes a TON of money off their slot machines. The slot machines only have roughly 3-7% edge over the player. So, out of $100 played through the machine by a player, theoretically, the casino would make $3 - $7. That doesn't sound much, but it works. If you've ever been to, or seen video/pics, of Las Vegas you will understand that those little percentages/edges work VERY WELL.
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