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Monday, 3 June 2013

How To Cut 4 Years Off Your Learning Curve As An Options Trader

By James Kupe


Learning an options trading system that works and then sticking to it is a hard thing to do. With the hundreds of new options traders entering the market every day, competition is getting tougher and you really need to be at the top of your game to survive. The good thing is there are 2 things you can do that will take much of the risk out of options trading, and help you build a profitable business.

There seems to be a product launch in the options market every other week, and every one of them promises to stop the inconsistent results and random rewards that makes options trading such a challenge. But since most products seem to be a rehash of the basics, it's really hard to know whether they offer anything new at all.

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 the basics of trading options

You should learn the basics of trading options, both on the buy side and the sell side. There's a lot of free training around, but you're better off to spend a few dollars and buy something from a recognized trader who's been around the block a few times.

Then spend a little time learning the ropes so you know the terminology and the rules of the game. You'll then be prepared for step two, which really is the easy part.

Step 2 - Buy an options trades alerts subscription

You'll want an alerts service run by an experienced, professional trader who has taught people how to trade and has some runs on the board. These subscription services signal trades as they take them in the market, and alert you by email and/or text message. Finding a reliable service that gives you results makes your options trading stress free and much more profitable.

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.

Oh, and one last thing. It's a good idea to go with a service that offers a free trial so you can test the alerts for yourself before you go all in. Most of the better services will do this for you, and you can paper trade some of the recommendations so your capital isn't at risk just yet. That way you'll know for sure if the service lives up to the claims being made pretty quickly, without risking your cash.

By learning the basics of options trading, and the finding an options trading system that generates profitable trade alerts for you, you can save a LOT of time and probably thousands of dollars in losses compared to trying to work out how to trade the options market by going it alone.




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