Options Trading Tutorial

Where Can I Learn How To Trade Options In The Stock Options Market?

I've heard that trading in the stock options market can be very rewarding but where can I learn how to do this?

Public Comments

1. You need to watch option prices for a couple of months. Pick a stock like IWM and just watch the option pricing. Many of the online brokers have tutorials.
2. You can learn almost everything you need to know about options at http://optiontradingpedia.com . Only after learning everything on that site are you ready to buy your first option.
3. Hi Francis, To be successful at trading options in the stock market, you'll need practice. The best way to get practice is through paper trading, that's where you follow a stock and pretend you are actually putting trades in and then taking them out, hopefully for a profit. You can also find books on the subject, like on amazon or barnes and noble. You'll need a good foundation on the basics. There are also different strategies when it comes to trading options so you'll need to learn those first as well. For more advanced ways on how to trade options, there are sites that offer guidance. The advantage with these sites is that they will take you beyond the basics and offer you a better chance at higher returns on your trades. I've listed some sites below that you can check out, they are for information purposes only and not a recommendation. However, you will learn a little more than what you can get from reading books. http://www.stockoptiontradingsystems.com http://optionsexpress.stockoptiontradingsystems.com http://tradeking.stockoptiontradingsystems.com I think if you start your learning this way, you will be able to succeed in trading options. Others have done it so there's no reason why you can't learn how to do it too. Hope that helps and good luck!
4. Most brokers offer FREE options education so you do not need to pay for basic options education. I started with www.optionsxpress.com. You can try that too and click on "education". This is by far the best website I learn options from. Note: Options can be a complicated tool as there are so many factors affecting the price. Just speaking from my experience as a trainer on investment products, you don't have to know everything to do anything. There are more than 50 textbook strategies in options itself. Knowing all will make you a professor, not rich. You don't have to know all. Just basic knowledge and you are ready to try the market with demo account. www.optionsxpress.com has this tool called Virtual Trading. Try it.
5. When I first started I used http://www.Optionetics.com to help me learn and grow as a trader. You do not need to buy their products and services, use their site to learn the basics and then develop and grow in whatever direction you feel fits your personality. Trading stock options is unique in that their are many different strategies you can employ. Find one that fits for you and you stand a good chance of being successful. Check your local library to see if they have any interesting books on stock options investing as that is free. You can also check out my blog at http://followmytrades.viviti.com. Feel free to ask me questions if you have any as I love to teach beginners the nuances of trading options. Hope you make it as a trader, be patient and you will do well. It is a unique game and one you will find challenging so take your time to learn and build a solid foundation before you throw your hard earned money away like so many new investors do.