Best Trading Strategies

4 Comments so far ↓

• zman492 // Jun 24, 2010 at 4:03 pm

  <<<Is anyone out there making money trading options derivatives?>>>

  I have some profits and some losses trading options, but my profits are greater than my losses.

  <<<Is it possible to earn a living doing this?>>>

  Yes, if you learn enough about it, have enough capital, spend enough time at it, and follow good money and risk management plans. I have never tried to make a living it at since I have always had an adequate income elsewhere.

  <<<What’s a good place for me to start learning how to trade?
  Can you recomend a specific web site that for option and derivative trading?>>>

  For learning about options I suggest you start with the free tutorials at

  http://www.cboe.com/LearnCenter/default.aspx

  After that, I suggest you read one or two good books about options trading. Any of the books at

  http://www.cboe.com/Institutional/Bibliography.aspx

  should be good. My favorites are

  McMillan, Lawrence G.: Options as a Strategic Investment, Fourth Edition

  Natenberg, Sheldon: Option Volatility and Pricing, Revised Edition

  but you should scan as many of these books as you can and pick the one(s) you are comfortable with.

  I will also mention that one options author, Mark Wolfinger, is a regular contributer to the Yahoo message board at

  http://messages.yahoo.com/Business_%26_Finance/Investments/forumview?bn=4686677

  as "dagnyt". (Mark is a former market maker and now is a retail trader.)

  If you are interested in his books you can find them at

  http://www.mdwoptions.com/

  <<<I know there is significant amoung of risk involved but the reward is great as well.>>>

  You can take as much or as little risk as you want. I think you will find most professional traders usually pick spreads less risky than simple stock positions.

• Tuxster // Jun 24, 2010 at 4:03 pm

  Hi,

  Why are you in such a hurry to get rich quick?

  Staying away from trading options derivatives will keep your blood lower and your sanity intact.

  What’s wrong with investing — not speculating — for the long term , and getting rich slow?

  Use the time value of money and compound interest to your advantage.

  Did you know if you invested a measly $228 for 60 years, at an average annual return of 15% you’d have $1 million?

  That’s the time value of money and compound interest at work.

• acarlatrade2 // Jun 24, 2010 at 4:03 pm

  Day Trade. You are starting with a positive look in this. Your right you, the outcome is great! I do have a resourse for you, that will allow you to learn and make money as well. E-mail me so I can give it to you directly. Keep up the positive attitude.

• cm4041 // Jun 24, 2010 at 4:03 pm

  I make a living trading option. But you must be very careful before you start to make a decision. I lost a lot of money before finally I can start make a living from option, It takes time for you to really understand how option is working. My books recommendation are "Option made easy" and "The bible of option strategies" all by Guy Cohen. I am not recommend that you are reading "Option as a strategic investment". It is more advance, but later as you get used with option you can read this book. I also recommend using "Option Xpress" or "Think or Swim" for your broker. Both brokers have virtual trading platform so you can practice your skill before trading with actual money. You can also check this website http://www.covercallcalculator.com to learn a conservative & safe way to trade option.

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