What you need to know about the Option Market

You don't need thousand of dollars to trade options.Just a few hundred will do...that is,if only your capital can sustain the frequent sporadic losses that will inevitably come along the way or if you're able to conjure up consecutive wins without losing which is highly improbable.So,my humble advice to you like any other veteran traders will say,"Have an amount that you're willing to lose and(in my opinion) start of with USD$2000,just a rough estimate,the amount it's up to you.The more you can afford to lose,the better...as losses will will show you the mistakes you made and once you learn from it,you'll be a better trader.Take this money as "tuition" money and do not to be fearful of losing it albeit I know it's hard.

So what do you need to know about the Option Market?
Well,I have to say that there is no one or two things that sums everything up about the Option Market.There are many things that you need to know,and there may be somethings that I have yet to know.What I'll tell you is the most important things that you need to know before you start to trade options.Before I go any further,I have to point out that I'm no guru and I feel the topics that I'm about to mention will be best explain by the experts(that you have to do your due diligence).I wouldn't want to mess up your understanding on certain option theologies.

1.Understand all the Greeks
2.Understand all the types of Volatility associated with option trading
3.Understand Money Management
4.Understand Technical Analysis or some say...,Charting
5.Understand Candlesticks

There may be more,but I strongly believe these are the 5 pillars of Option knowledge that you need to grasp before you go on any further.Happy Trading! =)


Cheers
Hyzel

"I always laugh at people who say "I've never met a rich technician" I love that! Its such an arrogant, nonsensical response. I used fundamentals for 9 years and got rich as a technician"
Marty Schwartz