Created: 03/23/2008 04:18:13 PM -
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This board is for those who wish to enhance thier trading experience by investigating options. Here, you can learn how to determine option pricing and the advantages of using different strategies to hedge your portfolio during bear markets and to maximize profits on them during bull markets.
Before you trade any options, heed this advice:
1. Get a practice paper trading account and trade the same amount that you plan to fund your account. Practice for at least 3 months before you place your first real trade. Failure to do so will likely result in what is known in the option world as Max Pain on the options you own.
2. Call your broker and find out what Level of Options Trading Authority they will give you. There are 5 levels, and it is essential that you are allowed at least Level 4 trading authority. This way you can limit your risk and increase your chance of a winning trade.
I use the Think or Swim ( www.thinkorswim.com ) platform because they offer all 5 levels to everyone. It is a decent platform, They have a web based platform and a desktop application (which is what I prefer) and have the ability to project future option pricing and backtesting for those who prefer it. They have 2 charting programs for redundancy, one of which is prophet charts, one of my favorites. They are very customer focused and will likely match commissions. Most brokers will only allow level 1 or 2 to inexperienced options traders, which is, in reality limiting your ability to hedge any trade that goes against you. You need to be able to hedge your trades, which is the true meaning of the word OPTIONS, in my book. You need to have the option to turn a losing trade into a winning trade with these levels of authority.
3. Get with a group of traders who focus only on options and futures. You can learn alot from people who are all focused in the same direction. Contact me for details. I am not a paying member, so my posting is limited but can reached at email@example.com, and "mrweekend" at HSM. I am sometimes found on paltalk as stockzilla too.
4. This is NOT A GAME! This is serious business and if you treat it like a business, you can reap the rewards of owning your business. Those rewards come in the form of $$$$$$$. If you treat this like a hobby, you will be paid accordingly. Every hobby I have been invoved in has cost me money. None have ever paid me.
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