Stock options are gaining popularity, but the mass population is still not fully aware of their existence.
Now that I have my own 300% return on my money experienced, I decided to tell the world of options trading.
The first lesson I will share with you is that when you tell people you're learning how to trade stock options, their responses will vary.
Some have a vague idea, or that you talk about stock options for employees.
A large majority will tell you that options trading is risky and should be avoided.
Do not take it personally.
They're just looking out for your best interest.
Many people discouraged me from learning to trade options.
I'm glad I didn't listen because trading stock options has changed my financial future for the better.
Learning to trade stock options has been a struggle at first, but over the years I\ve managed to disrupt the operations to cash in 7 easy steps.
I'm not the original author of the 7 steps, but I have noticed that all successful options traders follow them.
Here are seven steps: Step 7 Process Stock Option Trading Find Hot Stocks: For let's face it, stock, ready to explode is hot, what every trader looks.
Combine that explosive price movement with the potential gains of stock options and you have a winning combination.
This important first step in building the foundations for a successful commercial activity.
You can't find quality trades on a consistent basis unless you have quality stocks that produce these trades.
I use the newspaper to find my stocks investors.
They've created their own proprietary formula for finding the best stocks.
Creating Your Watch List: your watch list is like your pot of gold.
Will overflow with endless opportunities for trade.
This list is your 50-100 best stocks.
Their intention to review the charts every night or a week, looking for possible options trades.
Using Technical Analysis to Find Trades: At this point in the trading process you're going to use technical indicators to evaluate the stocks on your watch list.
Are you looking for chart patterns and trade entry signals.
Creating Your Hot List: If you found a stock that has signaled for a trade entry, you place it on your hot list.
Here is a list of stocks that are ready to commit money.
You pull up the option chain and you pre-select the options you're going to buy.
Then wait for the next trading day.
Observing the Stocks Follow Through: Did the stock continue in the desired direction? This is considered follow through.
After finding a compromise, you want to continue to share in the desired direction.
If it does, you enter the trade.
U003chtml u003E you\re one of four options trading strategies, you can learn with the. swing-trading-options.
Planning Your Exit Strategy: why is it that every hotel you stay in has an exit plan? Because they are preparing for the unknown.
Stock options trading involves too many variables out of control.
You must have an exit strategy planned out before you enter a trade.
E is an opportunity for risk management.
It's like buying car insurance.
You are protected in the event of an accident.
Using Smart Money Management Rules: there's only one way I know to get rich with options trading and that is to make more money than you lose.
You\ll need a set of rules, the total financial disaster to prevent.
Don't forget this crucial last step.
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