Question:
What option would you recommend I start with? Been reading about options and the more I read, the more I’m lost. I just put $2,000 to start option trading. I thought if I do 20 trades ($100 each), I’d be able to learn hands-on. Please start me out. I want money to build classrooms in my flooded country, the Philippines. Thought this might work.
Lucy
Answer:
Lucy, and the rest of you out there who see trading as a quick path to solve a financial issue, please be more sensible with your money.
Lucy, you put up $2,000 to trade a market you know nothing about? You put up $2000 to trade the options market, a high-risk market that can take all your money in a flash? You put up $2000 of money needed to build desperately needed classrooms? Why would you do this?
Sometimes, folks, we all need to step back, take a close look at what we intend to do. Sometimes, we need to stop and think about our motivations and goals related to that intention. Lucy, you need to do this because, in my opinion, you are headed down the wrong path if you think trading options with little or no experience is going to get you the classrooms you seek.
I encourage anyone who wants to learn how to trade to learn how to trade, but do so with your eyes wide open. In fact, consider taking a seminar from the Options Industry Council (OIC), which is a non-profit association created to educate the investing public and brokers about the benefits and risks of exchange-traded options. In the seminars, experienced options instructors provide valuable insight on the challenges and successes individual investors encounter when trading in options. As well, think about the quote below.
Trading options for a living requires nerves of steel, but can be very rewarding if you have done research and learned the proper techniques to trade options for a profit.
Trade in the day; invest in your life …
