Thursday, February 26, 2009

How should I start if I want to learn Option Trading?

1st and foremost,I would like to assure you that Option Trading is not as hard as people make it sound to be.They do that to either make themselves look sophisticated or they're trying to sell you their seminars,products or newsletters. The best tuition you'll ever get is through someone guiding you,educational trading books and your unavoidable losses that you will make as a rookie. I know cause I've been there and done that. If you are fully committed to be an Option trader,I hate to be a wet blanket,but first, you need to have an amount that you are willing to lose.I don't care(actually I do,if I wasn't,I'd be lying to you) that you will frown on me thinking that I don't have your best interest and I'm asking to you lose,but I'm just saying as a matter of fact that it will happen, simply because you have yet to understand the concept of trading.I've read tons of books,learn and analyze, promising to myself that I will never blow my account like "those traders" before I traded with real money.After 6 months of virtual trading,I started trading using real money with methodical and conservative approach and what happen after a month?You guess it! My account was pulverize to HALF! Now,don't be intimidated by this experience of mine,what I'm trying to tell you is that in trading,you need time to develop the unique skill that will manifest upon itself that you will discover along the way if you are serious enough.Educating oneself is paramount but one also need the sufficient capital to trade to pay for the tuition money(loss). You might be thinking,"Why not use Virtual Trading?" Ask any traders around you,whether trading with real and virtual experience the same feeling. They will slap their forehead as hard as possible and they will shrieked words like,"MONUMENTAL!,SIGNIFICANT!YOU CAN'T IMAGINE THE LEVEL OF STRESS...and similar stuffs like that.I know it sounds absurd to some of you when I say this:Conditioning one's mind to accepting losses is also a form of education,albeit I know majority frown at this fact. Heard of this cliche,"If you can't beat them,join them"? Since losses are an inevitable component in the trading arena,when the loss comes,embrace it and lose it as little as possible.Don't hate the fact that you lost.Be proud of the fact that you loss on an amount that you have predefined before you enter a trade.It's much better than a loss that spirals out of control and wipes out all your previous wins and maybe even your account right?OK, enough on losses.1.Get an online broker and start virtual trading,you will gradually carve out a strategy.2.Get someone to teach you the tricks of the trade.3. Read,read and read,4. Record every trade you make.,it is pointless if you don't learn from your mistakes.5.Just do it and stop finding for seminars that promise you untold riches.

Cheers
Hyzel


“Gifts count for nothing; will alone is great;
All things give way before it soon or late”

Ella Wheeler Wilcox

2 comments:

  1. Hi Hyzel,

    you have written an honest post, ya losing is always the thing that most people can't face it, you have got good points.

    The Bad Blogger

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  2. Hey there Bad Blogger,thanks for commenting! It really gives us a lift knowing that you actually take a kind interest on reading our blog.Thanks again! Cheerio... =)

    ReplyDelete