Unless you have added knowledge and experience in at least one investment venture, sometimes finding alternative means to stabilize your finances might not be as easy as you may think. When you consider an investment vehicle such as options trading, you must be prepared to spend agood amount of time learning in order to be able to make a profitable investment. Failure to learn, whether formal or informal, will be like casting your investment in the wind.
Having said that, getting a specialized options trading class would be a good idea. Attaining a good level of training in option trading is one of the most reliable and effective ways of attaining the requisite knowledge that will help you secure your stock options investment.
The web is becoming a vital resource for finding valuable information and tutorials to enhance your knowledge in trading options. If you are familiar with the Internet, you will appreciate the values of online forums, and online communities, especially when you want to learn something about options.
Every investment has a risk aspect pegged to it, and options are not any different. However, it should concern you when the risk involves you losing your money within a very short period of time.
Yes! In options trading, just the same way as it is possible to make profitable returns fast, losses can also be made that fast. Nevertheless, with the right training, you should be able to develop the skills required to help you prevent such losses.
Although you might not be able to grasp every taught strategy, especially if you are a beginner, it is advisable to identify one and become very good at it. You might be surprised by how much a basic lesson in options trading can help you achieve. However, as you move on in your investment, you will see the need of advancing your knowledge. One thing that you will notice is that options trading can be more complex compared to trading stock. At this level, it is important to identify the specific areas in which you want to improve and then try locating the appropriate classes for your training.
The beauty with most options trading trainings is that they are versatile enough to accommodate various specific trader’s needs. Therefore, whether you are looking for classes that will give you the basics of option trading or advanced techniques of market analysis, it is possible to find an appropriate class to accommodate your training needs. Probably the main question to ask at his point would be, how do you get reliable options trading training that will meet your specific needs?
In order to get a training program that will meet your specific needs, you will need to spend your time researching on the available classes. A quick Internet search will give you a list of training that you can compare against your specific needs. Your broker and other experts in the industry might also be very resourceful when it comes to imparting such specific skills, so you should consider consulting with them.
Ihad a lot of questions guys are asking me what I do in my real account because all the sample videos that I do are in a trading account. It’s real money. I do trade real money but I’m only trading one or two contracts because I want you to get an understanding and a feel for what we’re doing. But a lot of guys are saying, well gee, you just do small numbers and I’m just wondering what you do in your regular account.
Well, this is my regular account and you can see what my balance is and what kind of positions I put on. These are the exact same positions I put on in the demo account that you guys have seen the videos on. It’s the DIAs and the IWMs. I do have anMNX position in here and the SPYs. I trade with my own money.
Now this is the beginning of the month because it’s just May 15. This is the expiration week for the May options. What I like to do is put on some positions now, especially in the Indexes and then come Monday, after the May expiration,all of the July options will become available on stocks. There area few stocks that do haveJuly optionsnowbut normally they only have the front two months. So right now if I wanted to trade in a stock position today,I would only be able to get the May and the June options for back-to-back months, the two front months. Once the May expiration happens tomorrow,Monday morning,I’ll have the June and the July options for most of the stocks that I want to trade in.
I want to give you an idea that you can trade any size account and you know your profits are going to be based on the amount of capital that you put into these positions.Now all positions have risk, obviously, and you want to have smart allocation of capital but I’m beginning to build my positions now for the June expiration.
I just closed outmy May positions and now we’re rolling those into the June positions and so every month you’re going to be doing this. You’re going to be allocating your capital towards some initial positions right about at this time during that week of expiration. It’s always good to know exactly when your options are expiring. Remember they expire the third Friday of each month,so this is the time to put on positions.
Now I’ve just started putting on positions. I know exactly what my profits aregoing to be if I keep everything the same. They don’t stay the same because what I do is adjustments over the next three to four weeks before the June expiration date. Right now, though,I have a potential profit of close to $5,000 just on this very, very small…I mean I’m talking about if you take a look down here in the right hand corner, I have $10,000 in margin requirements and that is pretty low right now. I will eventually bump that up significantly as I add additional positions, but I stress diversification.
I’ve got the DIAs, the IWM, the MNX, and the SPY, which are all indexes so far because those are the options that I can get June and July in. Once Monday comes, I’m going to start putting on positions in individual stocks where I can get the June and July’s on the individual stocks. I’m going to diversify using stocks in my portfolio. There’s other ways to diversify which I talk about in the videos in the course. There’s several ways you want to diversify your risk and diversify your portfolio so you can get the maximum profit.
Now remember, this white line eventually, as we get towards the June expiration, will rise up as you’ve seen in other videos. It will rise up to the point where it meets this green line which is our June expiration. We’ve already got a small profit. We’re anywhere between $60 and $100 today. That’s going to change overtime and it doesn’t matter. What matters is the fact that we know that there’s a reverse gravity going on here. This white line is going to eventually move up to this green line.
I’m going to try and capture the majority of the potential profits in this position by the June expiration. Anywhere from 30 to 40 percent of my position and margin is going to be pure profit. So if you have the account, if you do have the funds, once you learn this business there’s really no limit to the amount of money that you can invest in the system. But you have to know what you’re doing first.
That’s why I suggest,strongly, that you paper trade for at least a couple of months. Start getting into real money using one or two contracts until you understand the system that you need to understand to manage this business by thenumbers. Get in there and do this and you will have the confidence going forward.
This is very different than speculating or trading based on what you think a stock is going to do. I’ve done that stuff. I’ve day-traded. I’ve bought a stock and, man, this thing has got to go upand all of a sudden it doesn’t do anything or goes down a little bit and I losesome money.
Or you’re taking a directional position.You buy a single option hoping the stock is going to go up or the index is going to go up, whatever you bought the option on. And you’re sitting there, you know, watching the screen every second.
This is thekind of business that you don’t have to sit in front of a screen. You don’t have to sit in front of a computer every single day. You can put these positions on. Sometimes the market does crazy things but you haveplenty of room to move either in the downside or the upside of these positions. You don’t have to sit there and watch this thing every single minute of every single day. That’s why I say you can manage this businessin 15minutes a day and you really can.
I tell you exactly what happens when this position goes against me. I show you. In fact, there are several live videos in the course itself that shows you exactly what you need to do in order to actually make more profits. It’s very easy to do; to add to these positions.
The price going against you is an opportunity for you to not only increase the amount of money that you are going to make for that month,but also to get the experience and confidence that you know what you’re going to be doing if the price does go against you. You don’t have to abandon the trade. You can defend the trade and you can make additional profits.
I hope this was instructional for you and I really do hope that you join us in the class because this is the real thing. You aren’t going to find this kind of training anyplace else and I really appreciate you watching this video.