Results 1 to 4 of 4
Options Trading (Smart?)
I am a fairly new investor. At first I had planned on going into this trying to obtain all the knowledge in the world on Swing Trading, but im starting to think Options is the way to go. Less Investment for Bigger Returns. I am young so it's not the end of the world if i lose a couple hundred bucks on a bad option pick. Can anyone give any advice on Options? Thanks
The terms "Options" and "fairly new trader" add up to a very high likelihood of negative outcomes. 80% of all options contracts expire worthless.
You have to make up your mind, do you want to trade or gamble? Either way, good luck.
And i do understand that the fact i am new to this makes it a bigger question on whether or not i could be successful at it.. Do you recommend Trading Stocks over Trading Options? If i got into options i wouldnt be buying high valued stocks.. But like you recommended i should probably try a simulator of some kind. Thanks for the heads up
Steer clear of options until you are very, very successful with trading stocks. As aiki14 has said, most options contracts expire worthless, which means that most option traders loose all of their investment.
As for simulators, they are worthless as you do not get the real feel for having skin in the game like you do when you have your hard earned dollars on the line. Trade small until you get the feel for it, and if you have to worry about the commissions, then you should not be risking the money anyway.
