Traders know that knowledge is power. The best options traders know that learning about the market is a never-ending process. It’s possible to garner a mass of information about available options, charting methods and other elements of the options market. What you know and how you use it are shaped by the types of option education you choose and the manner in which you educate yourself about trading options. There are a series of different ways to find out more about options trading. Here are a few sources, along with some suggestions of who would benefit most from each of them.
While the best source of advanced option education is your own experience, the school of hard knocks is certainly not a place for beginners to learn around trading options. Before you dive into the market, take the time to acquire the basics so that you actually understand what you are buying and selling and understand the ways to minimize risk when you start trading with real money.
You can’t ignore this fact
But then I became impatient. The market I was trading in did not have the nature of liquidity that allowed me to always take a trade when I saw an opportunity. So I decided to change from trading options to doing CFDs. At the same time, I was learning about ‘ABC swing trading’ as outlined by W.D. Gann and changed how I analyzed chart patterns and picked opportunities without fully understanding the environment in which this system works. Now whilst CFDs are a great deal more liquid than options, they also involve much greater associated risk due to the level of leverage involved. Unlike option trading, you can lose more than your investment, so the psychology was not good for me either. So many times, I found myself stopped out, only to dispose of the stock take off in the direction I had anticipated in the former place. I lost much of the money I had made from my previously successful option trading system.
You’ll find definitions, theories, many websites online that offer commentary, and other types of option education. Some of them are excellent resources. Some of them are not worth the electrons that carry them to you through the ether. It’s hard to tell the gap between the two, for beginners. Some very professional looking option education websites offer very little or incorrect information, while some amateurish, bare bones sites are actually run by traders with years of experience who answer questions and give advice as a hobby. Some of the bigger and better known option education websites are useful for those who learn well on their own and do not need someone to guide them through an organized lesson plan. For most people, though, they serve best as a resource, similar to a dictionary or any other reference.
Many trading sites provide free education for their customers and customers. While a large part of the trading education is useful-basics are basics, after all-a lot of the information and instructions presented on trading sites is site-specific. If you are interested in learning how to utilize the software and tools provided by a trading website you have joined, the option education courses offered by that site are probably your best choice. If, on the other hand, you wanna have a more broadly applicable knowledge of the options market of the effects of various trading strategies, you are probably better served taking a training course offered by an independent company.
Options trading books for beginners
Many experienced traders have put together their years of experience and created option education courses on different aspects of the trading. There are many different types of courses available, including interactive trading courses on audio books, CD, and online interactive training for options traders. These courses can be useful for anyone from beginners to the most advanced traders in the company, as long as you choose courses that teach you the things you ought to know for a more successful trading career.
Pursuing option education is useful for options traders of all experience and success levels, provided that the courses and lessons are appropriate to what you’ve got to learn.