How Do You Get Started Trading Options?
• Trade stocks first. If you consistently earn returns, then consider moving to options. If you lose money in stocks, you’ll lose everything with options. • Learn to talk the talk. Look up trading options terminology, organize the terms in a spreadsheet, print them out and start studying. Here are some very basic terms: • A call is the option or right to buy an asset at a certain price within a specific period of time. • A put is the option or right to sell an asset at a certain price within a specific period of time. • A holder is someone who buys options. • A writer is someone who sells options. • Begin reading books that cover the basic techniques and strategies for trading options. There are many books from which to choose. • It is critical you understand technical analysis. Learn to interpret charts if you want to successfully trade options, regardless if you plan to trade equity, index, currency or any other type of option. • Decide which options trading products best suit your t
