By James Kupe
There are hundreds of new options traders entering the market every day. And unfortunately, most traders have no chance of finding a profitable options trading system, so more than half of them quit within a few months, and never trade options again. The thing is, there are two important steps that can help virtually any trader can follow to take the risk out of options trading, and turn it into a profitable business.
New trading robots, systems and tools are coming onto the market every month, and they all promise they have found the solution to a traders worst enemy, inconsistent results. But the problem is, the results are usually overstated, while the risks associated with the option trading system or tool tend to be minimized or avoided altogether.
But if you don’t want to go into a market dominated by professional traders and get skinned alive, there is another way to get into the options trading business that’s a much safer way to go. And the best part is, there are only two steps in the process.
Step 1 – Learn about options so you know the rules
Learning the basics of trading options along with some of the more advanced strategies is critical unless you want to get wiped out by the professionals. You need to know all about not just puts and calls, but spreads, straddles, condors, volatility, gamma, theta, delta and the other Greeks. Invest a few hundred dollars and grab a course from a professional trader who’s been around and knows what he’s talking about.
Once you’ve spent some time learning an options trading system and what to expect in the market, you’ll then be prepared for the next step, which is the easy part.
Step 2 – Subscribe to a service that gives option trade alerts
Choose a trading alert service that’s run by an experienced trader who has plenty of runs on the board. It will most likely be a subscription service that makes live trades in the market and alerts you by text message and/or email. When you find a reliable service that helps you make profitable trades consistently, your work is pretty much done.
But you also need an understanding of how to trade options yourself, so you’ll be able to understand what’s happening with each trade recommendation. Then you’ll simply have to pull the trigger when a trade alert is signaled, and you’ll know exactly what to expect.
It’s also a good idea to look for a service that gives you a decent free trial period. That way, you’ll be able to test the alerts you are getting for yourself before you spend money on the subscription. And make sure you paper trade the recommendations first before you risk your capital, just to make sure everything is working correctly.
By understanding the basics of options trading and investing, an options trading system that generates trade alerts you can execute in your account is a no-brainer. You’ll save a LOT of time and thousands of dollars in losses compared to the results you’ll probably get going into the options market on your own.