Ready to learn options trading?
If you've decided to learn how to trade stock options, then congratulations! You have become one of the very few investors riding the crest of a new wave. Everyone knows about real estate and stocks, but options trading is a versatile new opportunity that anyone can learn, and all stock investors should. Within a few months, you can be profitably trading to support your family or church, secure your retirement, or supplement your income from a job.
Here's my guide to getting started….
1. Open a paper money trading account.
You will need a trading account with a good options trading platform. I recommend the thinkorswim platform, which offers a $100,000 paper trading account. Contact TDAmeritrade and you can possibly enjoy 60 or 90 days free use without opening a funded account.
Try one of these:
PaperMoney by thinkorswim Questrade
paperTRADE by Trademonster Virtual Trade by OptionsXPress
2. Open an Excel spreadsheet.
Record keeping is an important part of trading education. We recommend Google Docs, but any business software should give you what you need. All completed trades will be entered. Set your page with column headings like this …. [click on image]
In class we will go over all the elements of this page and the nuts and bolts of record keeping.
3. Start reading. If you completely new to Options Trading, then pick up Options Trading for Dummies or a similar book (available at Barnes and Noble or Amazon.com). Also buy The Bible of Options Strategies and keep it as a handy reference.
Now you have the three essential tools and are ready to start your options trading education. In addition, check out these websites with valuable information and free options courses.
- Investopedia definitions of everything optional
- CBOE.com grandaddy of options education
- Investtools TDAmeritrade's strategy education site
4. Join a class. You have a lot to learn, and all successful traders have had input other successful traders..
Honolulu Options Traders runs classes in Honolulu, and you can attend a free Introduction to Options Trading through Meetup. Go to meetup.com/honolulu-options-traders and check out their Calendar for upcoming classes and workshops.
So that's what it takes to get started. You should expect to spend 6 -12 months or more educating yourself and doing practice trades, until you are successful in choosing and managing the right strategies for the right stocks. Success does not depend on luck, and there are no short cuts!
Tiger says: "There are no secrets to success. It is the result of preparation, hard work, and learning from failure." (Actually it was Colin Powell.)
And here's one from Confucius . . . "Success depends upon previous preparation, and without such preparation there is sure to be failure."
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Tiger teaches options trading at http://www.meetup.com/Honolulu-Options-Traders
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