There are hundreds of new options traders entering the market every day. And unfortunately, most traders have no chance of finding a profitable options trading system, so more than half of them quit within a few months, and never trade options again. The thing is, there are two important steps that can help virtually any trader can follow to take the risk out of options trading, and turn it into a profitable business.
New trading systems, robots and tools are launched all the time, always promising traders who've been burned in the past that this time it's different. Unfortunately, it's usually more of the same when these systems are used by real traders in the real world.
But if you don't want to go into a market dominated by professional traders and get skinned alive, there is another way to get into the options trading business that's a much safer way to go. And the best part is, there are only two steps in the process.
Step 1 - Learn about options so you know the rules
You should start out by learning the basics of trading options, both on the long side and the short side. Learn about puts and calls, condors, spreads, straddles, volatility, gamma, theta, delta and everything else. Spend a few bucks and invest in a course from a well regarded trader who's been around and knows his stuff.
Once you've spent some time learning an options trading system and what to expect in the market, you'll then be prepared for the next step, which is the easy part.
Step 2 - Subscribe to a service that gives option trade alerts
Look for options alert service run by an experienced trader who has been around and is still personally trading a proven options trading system. If the person who manages the service is making the trades live in the market, and you can just ride on his coat tails, you are so far ahead of the game it's like shooting fish in a barrel.
But you also need an understanding of how to trade options yourself, so you'll be able to understand what's happening with each trade recommendation. Then you'll simply have to pull the trigger when a trade alert is signaled, and you'll know exactly what to expect.
It's also a good idea to look for a service that gives you a decent free trial period. That way, you'll be able to test the alerts you are getting for yourself before you spend money on the subscription. And make sure you paper trade the recommendations first before you risk your capital, just to make sure everything is working correctly.
By understanding the basics of options trading and investing, an options trading system that generates trade alerts you can execute in your account is a no-brainer. You'll save a LOT of time and thousands of dollars in losses compared to the results you'll probably get going into the options market on your own.
New trading systems, robots and tools are launched all the time, always promising traders who've been burned in the past that this time it's different. Unfortunately, it's usually more of the same when these systems are used by real traders in the real world.
But if you don't want to go into a market dominated by professional traders and get skinned alive, there is another way to get into the options trading business that's a much safer way to go. And the best part is, there are only two steps in the process.
Step 1 - Learn about options so you know the rules
You should start out by learning the basics of trading options, both on the long side and the short side. Learn about puts and calls, condors, spreads, straddles, volatility, gamma, theta, delta and everything else. Spend a few bucks and invest in a course from a well regarded trader who's been around and knows his stuff.
Once you've spent some time learning an options trading system and what to expect in the market, you'll then be prepared for the next step, which is the easy part.
Step 2 - Subscribe to a service that gives option trade alerts
Look for options alert service run by an experienced trader who has been around and is still personally trading a proven options trading system. If the person who manages the service is making the trades live in the market, and you can just ride on his coat tails, you are so far ahead of the game it's like shooting fish in a barrel.
But you also need an understanding of how to trade options yourself, so you'll be able to understand what's happening with each trade recommendation. Then you'll simply have to pull the trigger when a trade alert is signaled, and you'll know exactly what to expect.
It's also a good idea to look for a service that gives you a decent free trial period. That way, you'll be able to test the alerts you are getting for yourself before you spend money on the subscription. And make sure you paper trade the recommendations first before you risk your capital, just to make sure everything is working correctly.
By understanding the basics of options trading and investing, an options trading system that generates trade alerts you can execute in your account is a no-brainer. You'll save a LOT of time and thousands of dollars in losses compared to the results you'll probably get going into the options market on your own.
About the Author:
If you are looking to find the best value on options trading courses, then visit our site for the latest advice. And this blog post covers a simple options trading system for new traders to get started with right away.
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