To anyone considering learning how to utilize options as an investment tool, I offer encouragement and assistance.
However, it’s necessary to understand your reasons for getting involved with options and options trading.
Why do you want to use options?
1. Do you believe that trading is a fun profession and options require very little cash – enabling anyone to do it?
2. Do you believe that almost anyone can make money with options and that you would jump right in and collect the easy money – if only you had the extra hour per day? (And you believe that’s all that’s all it should require.)
3. Have you seen many Internet ads telling investors how easy it is to earn 5, 10, and 20% monthly returns on their cash? If it’s that easy, it’s about time that you get started.
4. Do you read the full page newspaper ads and see TV infomercials describing how people just like you took a weekend course and their lives changed? These regular folks became immediate and consistent winners, and there is no reason why you cannot do the same.
5. Do you have a valuable stock portfolio and seek intelligent, 21st century methods for protecting the value of your assets?
If you answered ‘yes’ to any question, other than #5, options trading is not for you.
Options were invented as risk-reducing (hedging) tools. Options have special characteristics that can be measured. These (they are called ‘the greeks’) allow the trader to quantify the risk of making a trade or holding a position – from a number of perspectives. This risk-measuring ability is unique to options.
Option traders run the gamut from wild speculator to very conservative investor, with the former having a very difficult time surviving.
There is a home for you in the options world. However, it is not easy. It required diligence and a true effort. It requires certain personality traits. There is much to learn and the majority who try discover that they do not have what it takes.
Still interested? Then there’s a decent chance you can do it.
Post a question below, get a great book, read this blog. There are other sites to visit and I’m sure you have already fond several. Be patient. You can do this.