In todays option trading market environment, the best remedy
for this situation is for you to get more involved in your own
The problem is that most individual investors involved in option
trading do not have the knowledge, resources, or time to spend
doing their own research, stock selection, execution, and position
The development and expansion of the internet has solved part
of this problem in that the internet now provides timely information
and resources, right at the fingertips of the individual option
Earnings reports, income statements, balance sheets, charts,
graphs, research, chat rooms, and even CEO video conferences
are easy to obtain online. Now, investors have all the tools
necessary to make their own option trading decisions.
However, for many the problem still exists. Why? Because, all
the tools in the world are no good to you, if you dont know
how and when to use them. The truth of the matter is that most
investors involved in option trading are not qualified or properly
trained to interpret the use of these tools, and are therefore
ill equipped to use them in making their own investment decisions.
So now what should investors do? The answer is to find someone
to help you help yourself. Not to make your option trading decisions
for you, but to assist you in making your investment decisions
and to help educate you as to the `how` and `why. `
You need to become more involved in option trading, and the
first step in the involvement process is education. Education
is the key to successful option trading for the individual investor
in the market of the future.
All of us who invest in the option trading know that there are
three possible outcomes after we make a stock purchase.
First, the stock can go up and this is generally a good outcome.
Second, the stocks can go down and this is usually a bad outcome.
Third, the stock can go nowhere - which is also generally a
It is bad because not only could you have put that money to
use in something with less risk that might have produced a return,
but you also incurred commission costs on the way in and out
which added to your loss.
So, we see that there are three things that can happen when
you take on a new stock position, and two of them are bad.
Now, what if we tell you that by employing a certain option
trading strategy correctly, you can improve your chances dramatically?
Instead of having two of three scenarios possibly go wrong,
you would have two of three scenarios that could go right. And,
the third scenario, the bad one, wouldnt be nearly as bad.
It can happen by using just one of the many strategies involving
teaming stocks with option trading