Investing In Options-Tips For Beginners
I Have Been Following commodities for about 15 years, more or less, and it is Probably one of the MOST interesting Things to do dog person. Sometimes It Seems So Hard to Understand why prices move in the Way They Do, Other times it looks so Obvious That It Seems too easy. OK we Need to get to the topic of options, specifically options for Beginning traders. First of all I need to assume That You Have Some type of Knowledge about commodities, futures and a little backgound about how They Are Traded. If Not That is OK too, just finish reading this article and We Can help you find a good place to start learning. I started out trading futures and did OK, pero got too excited when to jump up to trade well, it WAS the best feeling That to make money quickly. But soon you find out That it isn’t always easy. So I Would regroup and study anything I Could about futures and soon started to look at options trading. And sure boy There Are a Lot of Ways to trade options. Some Strategies Would Involve the Same thing as making 4 to 8 trades to ESTABLISH a position. I think the best way to trade options is to keep is simple. If your study of the direction of a particular commodity says it is going to go up, Then buy a call (s) If The Opposite is true, Then buy a put (s) But Before I Go Any Further Sometimes I Should Admit to using a multiple option approach, But it is very simple to do. If an option is a little too expensive But I am sure of the direction of the commodity I will do a spread option. I Do What Is Called Many Things by Different people or Brokerage, I call a bull debit spread (if long) or a debit bear spread (if short). Simply You go from the current futures price for a month and buy a Certain call weitere out and sell a call option for a predetermined price for the 2 options (if bullish) or buy a put and sell a put option weitere out for a price Determined for both (if bearish.) Remember This Must Be done as a spread so you Do not have a margin on the option you sold. If it is the first time you try this type of trade call the brokerage and make the order for the trade events with a live person if You Have an online account, You Should Have Them Walk You Through It at least the first time. But When You Are Starting Out There is nothing wrong with Buying a call or a put and Then just follow the market and Get Used to the daily ups and downs. You will Be responsible only for the price you Paid for the option so you shouldn’t worry yourself sick Have to about it and Be Able to sleep at night. Just start small and feel the Markets and How They move, it really is exciting to watch. That’s all for now, But I plan on Many more articles to come about trading options in the near future, so stay tuned and good luck. Roger Croy http://futures-update. blogspot. com Disclaimer: I am not a CTA this information is for education Purposes Only. Do Not make actual trades based on Expressed Herin Any opinions, information and training is Not Meant for current trading.