Just starting out or have been around the block now a couple times? Either way if your still working at that stupid day job then you still have learning to do don't you? So don't let this post title fool you - even you, the "seasoned pro" can learn a thing or two from going back to the drawing board and starting fresh.
For those of you who are truly starting out on the journey to options trading success - take notes and implement these tips right now. Get started with a strong education foundation and the profits will take care of themselves.
Who do you trust for options education?
I know it's hard when you are first getting started in options trading to find someone to trust for your education. The fact is that anyone who promises "get rich quick programs" with options is probably not someone you want to be associated with.
I'm sure some of you have already gone down this road (multiple times possibly) and wasted thousands of dollars...
Here's the truth...
It IS possible to earn money with trading. However, you HAVE to start slowly and build your way up to the bigger risks and bigger trades. So here are 5 important tips to get started or get back on track:
- Learn about stocks first. You can't learn about options trading until you learn how stocks trade first. Analyze them daily and read everything you can.
- Read 1 book a week. This won't kill you but you will learn a lot. Image what you would learn after just 1 year of education? Study everything you can before you start so that you have a great understanding of both the risks and rewards.
- Trading options for income. Don't go into this game thinking you are going to make 120% returns consistently. IT WON'T HAPPEN! Those who have been trading for years (not months) will back me up on this. Options can be a great source of income if you accept this in the very beginning.
- KISS. Keep it simple stupid! Don't make it more complicated than it already is. Use simple strategies, simple technical analysis tools, and simple money management principals. The rest will take care of itself over time.
- Start trading with PaperMoney right now. I've said this before but I still Paper Trade each month. I test out new ideas, strategies, techniques before I put good money to use - and you should be doing the same. If you can't make money paper trading how in the heck do you think you can make money trading with REAL money?
Option trading can be very rewarding, yes, but you do need to be prepared. Follow these tips and you’ll be off to a good start.